Where’s Our Gold Gone?

I know this annoys many readers but I have been suspicious all along about the supposed hordes of gold bars which investment companies claim to have in their possession, when not even their auditors are permitted to see and count their stashes, under the rules they are allowed to trade under.  I used to reference evidence for this, but the believers are so offended when I do this and call me all kinds of weird and funny names.
So this time just read of exactly the kind of case I mean –  from kitco.com today on nadler’s column.
Speaking of the CFTC and certain other ‘signs o’ the times’ – a civil complaint has been filed in California court against an outfit called American Bullion Exchange. The complaint alleges that some 80 customers may have been ‘relieved’ of about $5.5 million in the process of trying to buy bullion and coins (when in fact the funds were possibly used to trade futures and options and resulted in losses of about $2.2 million).

Among other things, the alleged victims were told that the firm would only invest their money into bullion and coins, that client funds were maintained in segregated accounts, that investments were insured against loss, etc.”[The] Defendants allegedly misappropriated millions of dollars of participants’ funds to pay personal expenses and to pay earlier investors purported profits with more recent participants’ funds, as is typical of a Ponzi scheme” reported Hedgeweek last night. During a recent conversation with a well-known Wall Street Journal reporter, this scribe noted that the more we are told that this is a “different ball-game than that in the early 1980s” the more evidence resurfaces that reveals that nothing (much) has changed.

This won’t be the last example.  If the Ponzis are starting to spill, the gold price would soon be in trouble.

The Tap Blog is a collective of like-minded researchers and writers who’ve joined forces to distribute information and voice opinions avoided by the world’s media.

3 Responses to “Where’s Our Gold Gone?”

  1. useless eater says:

    I’ve heard that most ‘gold’ is just iron sprayed with gold paint. With ‘paper’ gold outstripping physical gold by about 10 to 1 there will be a lot of unhappy bunnies when the ponzi scheme bursts.

  2. Tapestry says:

    or brass looks the part with a lead core.

  3. Twig says:

    Which is the best way to invest in gold?

    Have you heard of Bullion Vault?

    How about mining shares?

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