Posted: December 9, 2010 in Financial Fraud, Gold, Ongoing Criminal Activity, Precious Metals, Silver

There have been a couple recent events that in my opinion show banks are struggling to cover their fraud.

1. Swiss Bank client denied his $40 Million in gold.

2. Swiss Bank battles over 2 months for his $550K in silver

Jim Rickards and James Turk discuss these two recent cases where individuals demanding delivery on their gold and silver are getting the run around from the banks.  In the case of the $40 million in gold the bank denied their client their own gold until the person got their attorney involved.

What in the hell is going on with these criminal banks that are “storing” an individuals gold and silver?  Have they leased the precious metal to another financial institution?  Did they sell the metal in hopes the client would never demand delivery, all the while giving the client a certificate and charging custodian fees? 

These cases of fraud discovered by King World News will likely spread throughout the banking system.  Stories like this along with all the other catalysts we discuss at nausea make me confident prices are going much higher.  My gut feeling tells me most of these criminal banks do not have the metal or leased the metal to multiple parties.  If you have metal in the banking system you may want to get it out of the banking system ASAP.

  1. larry says:

    What is your turning point, signal for the trend going down?

    I’m positive gold is in a trend upwards, but for how long?
    There are all kinds of reasons (world economics, obama, problem nations, etc).

    Anyway, gold will go up until… what?

    what are your reasons or ‘things’ that will happen to make gold bubble bust and start trending down.

    I’m learning from this to make my decisions:
    (that is a google short url link)

    So, what are things that will make you change your mind about buying gold and start selling it?

    just trying to plan ahead 🙂


  2. yourhedge says:

    Thanks for the comment Larry. Well first I would say is gold is not a bubble. I think the bubble that is in the open are US Treasuries and the US Dollar. At some point we will see a mania stage in gold and silver but we are not there. If you search the article “Is GOLD a BUBBLE??” on this blog you will see an example chart of what a bubble would look like, if you compare this to a 10 year gold chart you will see gold in no way resembles a bubble. Some of the things that would make me think about selling are the following.

    1. The government stops monetizing debt
    2. The government actually slashes deficits and spending
    3. The government prosecutes the parties involved with causing this mess. This means the big banks Goldman Sachs, JP Morgan etc.
    4. The government comes up with a real solution to the $1.5 Quadrillion in worthless derivatives
    5. Countries around the world stop the currency war which they recently announced
    6. Countries around the world who have recently announced they will no longer trade in US Dollars announce we have confidence once again in the Dollar. This includes Russia, China, Turkey etc.
    7. Tensions in the middle east and around the world calm
    8. Real solutions are created for the Eurozone as we are all connected.
    9. Everyone and their brother are talking about how great gold is similar to the tech bubble or recent real estate bubble. If you talk to ten people on the street you will be lucky in 1 owns physical gold or silver

    Here are a few things I would look for before I stopped buying gold. As you can see these things will not happen except for #9 years down the road. There may be talk but it will not happen.

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