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Dude Wheres my Gold?
I read this story on zero hedge about the practice of some of Vietnam’s banks of basically stealing depositors gold to create the illusion of liquidity in their institution.
Heres the rundown.
Lets say Bao lives in Vietnam and he has a few ounces of Gold, and he wants to keep it safe, as well as make him some money without selling it.
HEY GOOD LUCK FOR YOU! The local branch of Ho Chi Minh (fictitious name) Bank will offer you storage in their bank PLUS PAY YOU A DIVIDEND! Basically like your cash you put in the account, the Gold you store earns you a set rate of dividends (ie they pay you a certain amount per month/year/etc. like a savings account).
So Bao does this and he thinks his gold is sitting in a little box Marked “Bao, 3 ozs, acct#11111″
In reality it was an empty box…… The bank was taking the gold of depositors and selling it to boos their “liquidity reserves” of cash so they could appear to be in good standing and solvent.
The banks were found out and now the central bank of Vietnam is “allowing” them to buy up to 20 tons of gold over the next few months, as a ban on using gold for operation capital is soon approaching.
Basically they got caught doing stealing, to do something illegal (use gold to boost operating capital) and they were heavily penalized by…being able to buy more gold….
As “Tyler Durden” from Zero Hedge points out, this basically means that any gold anywhere that is not in your physical possession and has been “handed over to an insolvent bank…for “safekeeping”, is currently being sold, lent out…and otherwise traded with…”
This is something to take notice of.
This is not based on anything but pure opinion, but i feel you may start to see this with U.S. banks, where they will offer to store gold as the dollar begins to tank for “safekeeping”, “look at the crime rate lately, its skyrocketing you should keep your metals investments with us, and we will even pay you a dividend!”
Upon which you will never see your Gold again
If you ever see this offered by a bank or investment company, DO NOT DO IT!
Your hedge against inflation will disappear into the vaults of the bank and never return.
2012-11-18 06:02:13
Source: http://www.greatnorthernprepper.com/dude-wheres-my-gold/
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