Wednesday, April 24, 2013

SERIOUS: Swiss Bank Refuses To Give Client His Gold

This is deeply disturbing and could cause a run on gold out of banks. If you have gold, you are a cautious person and you are not going to want your gold somewhere where you can't get it during an emergency.

King World News reports:
Today legendary trader Jim Sinclair stunned King World News when he revealed that a dear friend of his who is very affluent just had a Swiss bank refuse to return his large hoard of gold when he asked for it out of an allocated account.  Below is what Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis, had to say in this remarkable and candid interview.

Eric King:  “Maguire spoke on KWN yesterday about the fact that one of his clients went to the LBMA to get the metal from them and could not get it.  They told him he would be cash settled.  This is what you have been talking about is the failure of the physical markets.”

Sinclair:  “A person that I know with significant deposits in one of the primary Swiss banks, in allocated gold, wanted to take out his gold and was just refused on the basis of directives from the central bank....

“They told him the amount was in excess of 200,000 Swiss francs and the central bank had instructed them not to do it because it has to do with anti-terrorism and anti-money laundering precautions.

I really wonder whether those are precautions or whether the gold simply isn’t there.  Now you tell me that a London delivery has basically failed.  It has to raise our suspicions that the lack of physical gold behind the paper gold is literally so severe that we are coming to understand that it is in fact not there.

The gold that people think is stored is not stored, and the inventory of the warehouses for exchanges may not be holding deliverable gold.  There has always been speculation about whether or not the physical gold the US claims to store is in fact in those vaults.

The greatest train robbery in history might be all of the gold, and it would only be something like we have described above that would happen right before gold makes historic highs.

There simply is no gold behind the paper.  One example is AMRO, a second is your example with Maguire, and a third is my dear friend who was refused his gold on the basis that its value was too high.  Remember this friend of mine had his gold in an allocated account in storage at a major Swiss bank.  I repeat, there is no gold.”
Given what just occurred in Cyprus and now this report, it should be clear that money, including gold, must be kept outside the system. The government money grab is on. Bitcoins are not safe. The government will eventually close down the bitcoin exchanges. At this point, money that it isn't buried in your backyard is vulnerable to the government grab .

(ht Gary North)


  1. I have no doubt that a Swiss Bank may be buckling under government pressure but I seriously doubt the report on the LBMA. This has all the earmarks of a disinformation campaign. The LBMA is a members only association. It facilitates trade among its members. The story that a client went to the LBMA and couldn't withdraw his gold makes zero sense. I work with an LBMA member and gold is flowing with no restrictions and no premium.

  2. Here is what Maguire said about LBMA

    Sounds credible to me.

  3. "... one of the primary Swiss banks..." UBS or CS.

    The small, private Swiss banks are like old-fashioned banks: strictly brokerage and storage, with little-to-no trading for their own account and no lending (other than modest margin against stored collateral).

    Thus, they are very different from UBS and CS.

  4. Perhaps if commentators actually knew what the LBMA was they wouldn't make such silly statements as "The LBMA defaulted". It can't. A member bank might but not the association. This is akin to the nonsense that is spouted about the Comex defaulting. It can't. It simply clears trades. I've been a trader, broker and CTA for over 30 years but I am still astounded at the misinformation that passes as fact.

  5. That Bitcoin comment was the sinlge most ignorant thing I have ever read on the internet. I will be blacklisting this site and writer and never giving second thought to anything this publication has to say again. Sickening.

  6. Bitcoin comment shows us that the author has no clue about the power of the Bitcoin.

    I will reveal my little secret: Bitcoin is indestructible.
    If they close all the major exchanges, then a lot of smaller exchanges will pop up.