Tuesday, July 03, 2012
So You Think You Own Some Gold?
Think again!! Many "investors" who believe they have purchased "gold" and hold it in the form of certificates issued by bullion banks around the world will find that delivery of the physical precious metal is impossible. This is due to what amounts to a "fractional reserve" situation similar to the currency system engaged in by all commercial banks. When such "investors" demand physical delivery of the actual metal to their vault outside the banking system the bullion bank will substitute paper banknotes or electronic digits equal to the manipulated market price of the gold. The reason for this is that there is insufficient metal in existence to equal the number of ounces for which certificates have been issued.
at 4:47 PM