Australian gold vaulting service investigated for fraud/malfeasance

ASIC received a significant, detailed complaint of misconduct concerning a company that sells gold, silver and palladium to the public, and then stores the bullion on behalf of their customers.

The complaint suggested the company was selling bullion it did not own, failed to purchase that bullion and had a storage vault incapable of holding the volume of bullion they were minding. Further, that customers are having trouble getting their purchased bullion and there are questions around council approvals and the suitability of their “vault”.

ASIC investigated and found nothing wrong, however there is doubt around the veracity of the audit.

ASIC offered to brief me on this matter, which I accepted.

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Transcript:

We've seen already that there are forces within Australia that are very eager to demonize gold, gold refiners, gold marketers and now gold storage facilities. This, while we've seen the totalitarian nature of the present government there, lo these last four years.

Ordinarily I'd doubt a storage-facility spokesman in such a nature; but given what we know about the government; that the complaint does NOT identify any victims or any failure to deliver or to settle in cash; and asserts the improbable hypothesis that the company returned the gold given the long lead time in the investigation...I'd suggest that this storage facility is getting Peter-Schiff'd. Just as state-owned Australian Broadcast Company did with Schiff's bullion bank.

sounds like to me keeping the name private etc is all designed to avoid a "bank run" on the storage vault ...that in itself implies lack of stock

It also happened during the days when if you were caught they chopped your head off. A greedy thief is going to steal given the opportunity.

Ttazzman said:

sounds like to me keeping the name private etc is all designed to avoid a "bank run" on the storage vault ...that in itself implies lack of stock

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Keeping the name private, suggests to me that the whole story is either BS or twisted beyond what facts support.

Like "Reliable sources told us...."

That video was an Australian Senator questioning a representative of ASIC - Australia's regulatory agency.

I only read the transcript. The other comment suggested there might have been some background I missed.