Gold Investment: Proof that paper gold is not safe

Gold Investment - 28 November 2011

Avoid paper gold and acquire or buy physical gold, since it has now once again become abundantly clear that paper gold or financial instruments that are marketed and sold as being fully backed by gold (or silver!), simply cannot be trusted. In fact, it seems that paper gold (and paper silver!) is too a large extent not backed by gold (or silver!) despite the best of claims to the contrary.

Invest in precious metals today! Contact us for details.

Invest in precious metals today! Contact us for details.

In fact, let’s consider the very recent experience of world renowned forecaster, Gerald Celente, as proof that paper gold, like fiat money, is fraud with risk. Mr. Celente has lost a six figure sum as a result of fraud pertaining to his gold futures account. He was ready to take delivery of physical gold, but despite the fact that his gold futures account was fully funded, he received a margin call out of the blue “…as Chapter 11 trustees stepped in to take control of his funds, leaving his account empty... and thereby closing his positions and preventing him from taking physical delivery of his gold which was due in December” (Proof that Gold ETFs Are a Fraud, Wealth Wire, 21 November 2011). Shockingly, when “…Celente rejected demands to transfer more money into the account, it was hastily closed” (Proof that Gold ETFs Are a Fraud, Wealth Wire, 21 November 2011). This is out and out fraud, because firstly, it is clear that the broker-dealer didn’t have the gold he claimed to have, and secondly, the broker-dealer has blatantly stolen money out of his customers’ accounts.  In fact, unknown to Mr. Celente at the time, his gold futures account “…was being held under the auspices of an MF Global subsidy”, and to make matters worse, the stolen funds “...turned up at JPMorgan Chase, the failed broker-dealer’s custody bank” (Proof that Gold ETFs Are a Fraud, Wealth Wire, 21 November 2011). This should not come as a surprise to gold and silver bugs, because JP Morgan’s alleged involvement in illegal gold and silver market manipulation is nothing new.

Invest in precious metals today! Contact us for details.

Invest in precious metals today! Contact us for details.

Now, while we have barely touched the tip of the iceberg here, it will be wise for investors who hold paper gold (and paper silver!) to heed Mr. Celente’s warning when he advises “…Americans to cash out of all gold ETFs and withdraw their funds from the bank because “they are going to steal all our money” (Proof that Gold ETFs Are a Fraud, Wealth Wire, 21 November 2011). Mr. Celente is not advising that all funds should be withdrawn from banks, but most of the funds. One should at least have some operating capital left in one’s bank account for day-to-day expenses.

<< Previous    [1]  2    Next >>