Allocated gold scams?

[pmbug]

ZH contributor George Washington compiles a list of scam allegations:

In 2007, Morgan Stanley paid out $4.4 million to settle a class-action lawsuit by its clients after Morgan Stanley charged them to buy and "store" precious metals for them, but neither bought or stored the metals.

(Similarly, a 2011 class-action lawsuit filed in federal court in New York accused UBS Financial Services of misleading silver investors and harging them storage fees for metal that was never actually purchased, segregated, and stored for them.)

Avery Goodman points out that Morgan Stanley has once again just launched a similar scam, offering "allocated" metals, but gaming the definition so that the holdings are not really allocated.

On May 21st, Matterhorn Asset Management's Egon von Greyerz alleged that Swiss banks are trading physical gold bullion which is being held in special "allocated" accounts for its customers:
...

More: http://www.zerohedge.com/contributed/2012-07-06/are-banks-raiding-allocated-gold-accounts

 

[ADK]

And this is why I support my non-company-sponsored 401-M account.

401-Mattress.



I just can't support this "central bullion vault" practice. It seems ridiculous that anyone with good financial sense and a need for security would trust a bullion storage game.

I guess if your money isn't really that important to you and you have plenty to burn, or your are "diversified"... then ok, I guess. It's your money!

 

[ancona]

Hey.....do me a favor and hold on to this gold for me.....OK?

Who in their right mind thinks this is a good idea? These storage scams are just that....scams. They are like a self licking ice cream cone for the banks, but a great way for you and I to lose a shitload of cabbage.

 

[ADK]

They are like a self licking ice cream cone for the banks...

:rotflmbo:

 

[rblong2us]

no sleep for me tonight )-:


wait .......

" I guess if your money isn't really that important to you and you have plenty to burn, or your are "diversified"... then ok, I guess. It's your money! "


phew, its all ok (-:

Anyway, Bullionvault and Goldmoney promised me .........

 

[ancona]

Anyway, Bullionvault and Goldmoney promised me .........

What about Bullion Direct and the "Nucleo Exchange"? That's another one where you supposedly have gold stored somewhere that you never see.