Phantom gold in Swiss bank vaults

[swissaustrian]

I already knew from insiders that these scams were going on here in Switzerland, but it's interesting to see it confirmed by Egon von Greyerz:

Von Greyerz also told KWN that a major Swiss bank did not have a substantial amount of allocated gold which they claimed to possess for their client: “We are stressing to investors to take their gold out of the banking system, not only because there are runs on banks that will continue, but the risk of being in the banking system is major. So you should take the additional step of not just owning physical gold, but also owning it outside of the banking system.
We (just) had an example of a client moving a substantial amount (of gold) from a Swiss bank to our vaults, and we found out the bank didn’t have the gold. This was supposed to be allocated gold, but the bank didn’t have it. We didn’t understand why there was a delay (in our vaults receiving the gold), but eventually we found out why there was a delay (the bank didn’t have the gold). It’s absolutely amazing, but not surprising.

This confirms what I’ve always thought. Not only should you not have gold in banks or even unallocated gold, but even allocated gold. It seems that some banks don’t even possess that. So the risk of having gold in the banking system is major.”

http://kingworldnews.com/kingworldn...Shocked_Allocated_Gold_Not_in_Swiss_Bank.html

MP3 of the interview:
http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2012/5/22_Egon_von_Greyerz.html
POSSESSION IS 9/10th OF THE LAW

 

[Bonzo]

So how did they settle this. Did they buy gold from another source or settle in cash or paper?

 

[swissaustrian]

The bank probably bought it before delivering it to Matterhorn Asset Management (v. Greyerz's company). The physical gold market isn't particularly tight here in Switzerland. As long as it isn't a huge amount, it's not a problem to get physical quickly. Zürich is the gold center of continental Europe.

 

[Penn]

Bravo on another stunning thread.

 

[pmbug]

I seem to recall something similar happening a while back with another bank and the possibility of the bank being sued for all the "storage" fees they were charging for allocated gold that they didn't actually possess and weren't actually storing. I don't recall the details right now and I don't have time to search for it.

 

[swissaustrian]

I seem to recall something similar happening a while back with another bank and the possibility of the bank being sued for all the "storage" fees they were charging for allocated gold that they didn't actually possess and weren't actually storing. I don't recall the details right now and I don't have time to search for it.

Yes, there were two cases one involving UBS ( http://www.gata.org/node/9733 ) and another Morgan Stanley ( http://www.silverbearcafe.com/private/moneyfornothing.html ). In both cases, it were the US branches of these banks however. It's the first known case of a Swiss branch of a bank.
Additionally, both cases were about phantom silver, not gold.

 

[BigJim]

If they need to get physical quickly,maybe they could try Ft.Knox..:rimshot:


GOD BLESS & BRING OUR TROOPS HOME!!!

 

[ancona]

Hypothecated gold man, it's all the rage these days!