New York Federal Reserve Lying About Gold Storage

gold vaultThe NY Fed states on its website:

All bars brought into the vault for deposit are carefully weighed, and the refiner and fineness (purity) markings on the bars are inspected to ensure they agree with the depositor instructions and recorded in the New York Fed’s records. This step is vital because the New York Fed returns the exact bars deposited by the account holder upon withdrawal—gold deposits are not considered fungible. 

This simply can’t be true. For one, the Bundesbank succeeded to repatriate 5 mt from the NY Fed in 2013 (although they wanted to withdraw 37.5 mt that year to repatriate 300 mt before 2020). Did they get back the exact same bars they once deposited?  No, the bars were remelted. This is only logic as we know New York has a big gold leasing market which is largely facilitated by gold from the NY Fed vaults. No, gold leasing is not a conspiracy, it’s just part of the gold market. [Read more...]

Glenn Beck Takes Gold Rehypothecation Story Mainstream- German Gold is GONE!

Bernanke-Dimon-Fed-TunnelIn the eyes of TPTB, it is one thing when a fringe financial blog such as SilverDoctors reports on and discusses the fact that the gold reserves supposedly held 5 stories below the NY Fed are likely rehypothecated and vaporized long ago.  It is another thing entirely when the former top personality on Fox News, and whose news website The Blaze is the 140th most visited website in the entire US, devotes 20 minutes of TV time discussing the German’s attempts to repatriate their gold reserves, and discusses the implications of what the Fed only returning 37 tons of re-cast gold bullion to the Bundesbank in year 1 likely means.
In Glenn Beck’s own wordsThe situation is worse than even I thought it was….There’s not alot of that gold (at the Fed) really left.  The answer is rehypothecation.
How hard is it to return the Bundesbank’s gold? It has their stamp on it!  The reason the German gold is being returned over 7 years is that a phone call came in to the Germans and said  ‘Hey, Rehypothecation, Dude! There’s not enough gold here!  We were playing a game!’
Once people demand their hard asset back, the entire thing collapses!

It appears the gold manipulation and rehypothecation story has just gone mainstream. [Read more...]

Ned Naylor-Leyland on Infinite Gold Rehypothecation

rehypothecationIn the latest Keiser Report, Max interviews Ned Naylor Leyland of Quilter Cheviot Asset Management about the latest on the German and UK investigations into the manipulation of the gold fix.
They look at infinite rehypothecation in the London Dustbin and the exit of Bart Chilton from the CFTC as the pin-up girl for silver price manipulation. [Read more...]

Deepcaster: Meltdown Warning Signals: Run for the Hills!

Historians will certainly consider the 2008 crisis as a warning shot before that of 2013. – LEAP 2020

Indeed, we are already seeing some of those Signals sound such a Warning.
A prime signal of impending Financial Collapse would be the collapse of one of the world’s too-big-to-fail Mega Banks, all of which are interrelated as counterparties on trillions of dollars of Derivatives and other Instruments. The prime candidate for collapse – Deutsche Bank.

The Fed and Bank of England can protect the American and English Mega Banks to a degree because they can print unlimited money. The Deutsche Bank has no such national currency printer/protection, and DB is under increasing pressure from the LIBOR and other fraud allegations and investigation.
There are also reports DB has sold 60 thousand tons of allocated Gold certificates to clients. But who actually has the Physical Gold and how much do they have?


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Jim Sinclair: Euro Will Prevail Over the USD

sinclairJim Sinclair sent an email alert to subscribers over the holiday weekend regarding the Eurozone’s proposal to take down shadow banking and asset rehypothecation.
Sinclair states the proposal is a direct blow to the global banksters:
Now we have a proposal which when adopted would be a Euroland Blockbuster. A direct kick in the slats of Shadow Banking, something that will never occur in the USA. Euroland would unravel the collateral chains of Shadow Banking there, if you can call it that, a knee capping.

Sinclair states the Eurozone’s latest proposal is more evidence that the Euro will ultimately prevail over the USD, to the contrary of US MSM MOPE This is, in the final analysis, more evidence that the Euro in whatever form it ends up, two or one, will take ascendancy over the dollar, certainly if these proposal become solid action.

Sinclair’s full alert is below: [Read more...]

HKMEx Scandal Widens As 4 Officials Arrested With $1/2 B in False Bank Documents

Last weekend we broke the news to US readers that the HKMEx was closing and would cash settle all futures contracts effective Monday, 5/20.
The intrigue around the exchange’s failure exactly 2 years after it’s 2011 launch just increased substantially, as 4 high level HKMEx executives have been arrested after being found with over $1/2 billion in false bank documents.
The HKMEx founder and CEO Barry Cheung Chun-yuen is reportedly now also under investigation for his involvement in the scandal. [Read more...]

Only a Question of “When” That the Lights Get Turned Off & Deliveries of Metals Cease!

lights outIt is now only a question of “when” that the lights get turned off and deliveries of metals cease.  ABN Amro notified customers 2-3 weeks ago that their supposedly ALLOCATED metal would not be delivered.  How can this be IF it was truly “allocated”?  The only plausible reason that customer “allocated” metal would not be delivered is because it was previously “re” allocated to someone else and is no longer in the vault.  There can be NO other explanation.
As has been said many times before and from several viewpoints, you either have the metal or you do notWhen all is said and done, there will be at least 99 people out of 100 who believe that they own metal who will find out that they do not.  The time to act and separate yourself from those 99 people is now, right now.  Deliveries will fail and supply for new purchases will dry up over night, there will be no “options” once the default is triggered. [Read more...]

Jeffrey Christian: Turkey’s Rehypothecation of Citizen Gold is Pure Genius!

Daniela Cambone Jeff ChristianOur favorite gold and silver cartel shill, CPM Group’s Jeffrey Christian gave an interview to Kitco’s Daniela Cambone at the 2013 PDAC conference in Toronto. 

Permabear Christian stated that gold and silver investors and those optimistic about the outlook for the metals are disillusioned, and stated that Turkey’s recent efforts to convert their citizens privately held gold into central bank gold reserves (via rehypothecation) is pure genius that will be emulated by the other central banks.

As to his gold outlook, Christian is as bullish as we’ve ever seen him, stating that, We don’t think gold will crash down to $1,000, we think it has support at $1400.

Christian’s full interview with Daniela is below: [Read more...]

Jim Willie: Gritty Questions on the Historic Collapse

collapseBy Jim Willie, GoldenJackass.com

The typical articles over the last many years have featured a particular theme. In the last few months, the central theme in Jackass articles has been the isolation and demise of the USDollar, how it is happening, why it must happen, and its importance in the restoration of the global financial structure. But this week, a sudden urge has come to address an overwhelming list of critical gritty questions. They crop up with clients, colleagues, and friends.

More than a crisis, it is more accurately described as a collapse of a corrupt inequitable monetary system, and a desperate defense by the major Western bankers to preserve their power over nations and their governments, alongside a vile vicious violent attempt by the United States to maintain its privilege as owner of the vast USDollar counterfeit machinery, as controller of vast banking pillars of paper columns, and as commander of a vast military.

THE UNITED STATES IS PREPARING TO FALL INTO THE THIRD WORLD.

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How ZH’s Discovery of JPM’s Top-Secret London Gold Vault Could End JPM’s Alleged Gold Manipulation

Yesterday we reported that ZeroHedge via excellent investigative journalism had discovered the top-secret location of JP Morgan’s London gold vault- namely 60 Victoria Embankment.
Numerous SD readers have inquired as to the significance of the story, and why the discovery of the specific location of JP Morgan’s gold vault should matter to precious metals investors (or to JP Morgan for that matter).  The answer as to why this is so significant for JP Morgan lies in rehypothecation.

Once a precise location, holding specific goods can be pointed to by a creditor, the creditor will quickly seek a Writ of Attachment.  The gist of receiving the writ for JP Morgan is: “Hey, turn over this specific XXX to the court, so the court can give it to the proper owner; and don’t you dare move it until the court says OK.

All diehard gold bugs suspect, of course, that through leases, derivatives, futures and [etc], JP Morgan has geared the bejezus out of the bullion, regardless of who the legal owner(s) are, regardless of whether the gold is supposedly allocated or unallocated (think MF Global).

So the thought that JP Morgan might have to send its legal team in to court to do battle with barbarians at the gate – the 120 banks looking for assets – is juicy. And a true headache for JP Morgan, because if or when it happens, JP Morgan no longer controls the situation.

 

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Bankruptcy Judge Nixes Commodity Customer Coalition’s Bid to Depose Corzine

CorzineUS bankruptcy judge Martin Glenn has ruled that the Commodity Customer Coalition cannot question Jon Corzine regarding the $1.2 billion in vaporized/rehypothecated segregated client funds still missing from MFG accounts, because the CCC is not a direct creditor in the case. 

Let’s get this straight- the Honorable Judge Glenn has essentially ruled that Mr. Corzine needn’t make a trip back from the Cayman’s, as each of the 10,000 farmers and small investors victimized by Mr. Corzine must personally appear before Judge Glenn and request a deposition of Corzine!?!?!

Meanwhile, Corzine starts his own hedge fund… [Read more...]

Harvey Organ: CFTC Can’t Release Findings of Silver Probe- End Game is Being Played Out, LBMA & COMEX Near Default!

Source: FT.com

The Doc sat down with Harvey Organ again for the 3rd and final interview regarding the recent massive cartel intervention in the gold and silver markets post the QE4 announcement, the fiscal cliff, the CFTC’s silver probe, and the unprecedented 20 million oz of silver still standing for December delivery.

Harvey stated that the CFTC’s silver probe has concluded, but they can’t release the findings because it would collapse the entire financial system!  Harvey also stated that China is ultimately the big gold & silver short, and stated that the nation is draining massive amounts of physical metal East.

Organ also made the shocking allegation that COMEX is settling allocated delivery & storage requests with paper metal,  and stated that he no longer has any faith whatsoever in the numbers reported in the COMEX gold and silver inventories. 

Harvey gave hope to PM investors who have endured years of cartel interventions in the gold & silver markets, stating that the end game is being played out, and that extreme physical shortages of silver could end the manipulation once and for all, possibly as soon as March!

Full MUST LISTEN 3 Part Interview Below: [Read more...]

Bank of Australia Admits 99.9% of Gold Reserves Are Held in Bank of England

How do you say rehypothecation in Australian? 

After months of persistence, our friend Greg from AUSBullion has received written confirmation from the Reserve Bank of Australia that the bank holds all but 80 kg of Australia’s gold reserves at the Bank of England.  Out of 80 tons of physical gold, less than 0.1% is held in Australia!

The Central Bank defends London’s storage/rehypothecation of Aussie gold, stating: London is a major global gold trading market and the Bank of England provides a secure and cost-effective storage location for central banks and market participants. The Reserve Bank has processes in place to ensure that the gold reserves are maintained appropriately. It is not considered necessary from management, security or operational  perspectives to relocate the gold bars to a facility in Australia.

The Bank of Australia’s admission that nearly all of Australia’s gold reserves are on deposit at the BOE is below:
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Chemistry Professor Tours BOE’s Gold Vault: “It Can’t Possibly Be Real!”

In what is no doubt a propaganda piece designed to attempt to slow the gold repatriation and audit request freight train, the Bank of England has taken the unprecedented step to allow University of Nottingham chemistry Professor Martyn Poliakoff to take a video tour of the BOE’s gold vault.
Poliakoff excitedly proclaims that he has never seen this much tungsten gold (or this much of ANY element he clarifies), and states that his gut tells him that one’s first reaction is that it can’t possibly be real.
Poliakoff lets out a little too much truth in his interview (perhaps the BOE should have commissioned someone from the BBC to conduct the interview rather than a Chemistry professor?), stating that the reason the BOE and the central banks keep so much of their reserves in gold is because the value of gold is very stable compared to the value of currencies.
He also explains how the futures market really works:  Each bar has a serial number, and when people buy and trade the gold, they don’t actually take the bar home, the number is just transferred from the seller’s account to the buyer’s account. (What Poliakoff doesn’t mention is whether each bar has been rehypothecated to numerous owners as Ned Naylor-Leyland discovered was the case with Bob Pisani’s GLD bar last spring)

Poliakoff’s MUST SEE full video tour of the Bank of England’s gold vault is below:

[Read more...]

Ned Naylor-Leyland: If Your Gold Reserves Are at the BOE or NY Fed, You Have No Chance of Getting Out With Any Metal!

The Doc welcomed back Cheviot Asset Management’s Ned Naylor-Leyland for an exclusive interview Sunday regarding the German gold repatriation, and how it will affect the physical gold market going forward.
In this MUST READ interview, Naylor-Leyland stated that when you take into account the fractional reserve accounting by the bullion banks, the 50 ton annual gold repatriation number is much larger in terms of the impact on the underlying market.

Naylor-Leyland believes Germany and the other central banks storing their gold reserves at the BOE and the NY Fed are essentially SOL, stating: If you’re holding your central bank gold reserves either in the Bank of England or the NY Fed, unless you are Theseus trying to find the Minotaur, you have no chance of getting out of there with any metalThe gold ownership chain of custody is severely tarnished and it’s obvious that it’s a problem.  In light of what we know about the tightness of the physical market it appears the pressure is on, and it’s not likely to dissipate.

Full MUST READ interview with Ned Naylor-Leyland on the central bank panic out of paper and into physical gold reserves below: [Read more...]