by Kenneth Schortgen, The Daily Economist:
On October 8, well respected gold trader and Managing Partner of Matterhorn Asset Management, Egon von Greyerz, spoke in an interview of some very disturbing occurrences taking place in Swiss banks when it comes to individuals and organizations keeping gold deposits held in their vaults. And Greyerz went on to give a dire warning that banks are no longer a safe repository for your assets as they will securitize them, and in some cases not return your gold to you upon request.
Egon von Greyerz: “Don’t hold gold in a Swiss Bank or in any bank in any country. We regularly see examples both in mid-tier and large Swiss banks that should make bank clients very concerned. Here are some examples:
- A client stores physical gold in a bank but when he wants us to organize a transfer to private vaults, the gold doesn’t exist and the bank must acquire it.
- 400 oz gold bars that were bought by the bank for the client in 2005, were cast in 2011, so the gold never existed.
- The client is told he owns physical gold and silver but actually only has paper metals.
- Swiss banks are also doing all they can to stop clients taking their gold out. One major bank refuses to transfer gold out if the client isn’t present. Another major bank recently told the client that they don’t transfer client gold out of the bank to anyone, even if the client demands it.
Swiss banks tell their clients that physical gold and silver held in the bank vaults on behalf of clients is not on the bank’s balance sheet and based on Swiss law it belongs to the client.Yes, that is correct, but how many times have we not seen that banks under pressure use client assets as security for their trading, especially when they are under pressure. – King World News
As with any physical asset, possession is nine-tenths of the law. So if you don’t hold it, you don’t fully own it in today’s financial system.
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