28 March 2013, 16:04

ABN has no gold left for its clients

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So far, the people who believe that there is a big cartel suppressing the price of gold using the “paper gold” market have been widely regarded as conspiracy theorists that shouldn’t be taken seriously. The “paper gold manipulation theory” predicts that the world’s financial institutions lack the physical gold required to keep the price suppressed and sooner or later the powers that be will resort to gold confiscation.

This week, a well-known Dutch bank was the first financial institution to inform its clients that their “gold investments” are no longer physically deliverable, proving that the physical gold and “paper gold” are different commodities with different prices. The world’s financial system is short on gold and no gold bars, except those that are kept by the owners, are safe from confiscation.

ABN AMRO, the biggest Dutch bank, has sent a letter to its clients stating that they will no longer be able to take physical deliveries of the gold they have bought through ABN. Instead they are offered money at the current market rate for gold. Basically, instead of owning a risk free, physical asset (a gold bar or a gold coin), the bank’s clients now own a monetary claim on ABN AMRO, being exposed to the bank's credit risk. Such action is unfair and resembles a disguised default, even if it is supposedly legal. The bank is taking away the clients’ gold, without their consent, and is replacing the gold with a claim on the bank, forcing the bank’s clients to become the bank’s creditors. It is obvious that at least some of the investors who used to invest in precious metals using the Dutch bank services will stop doing business with ABN. The only logical reason for the bank to do something so damaging to its own reputation is to avoid a default on their physical deliveries of gold.

The situation can be explained in simple terms: the gold is gone or there never was any gold. The conclusions are clear to any seasoned investor. Never trust a bank to hold your precious metals. It will only end badly.

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