Gold Storage: The MF Global debacle

Gold Investment - 26 December 2011

The MF Global (MFG) debacle stresses the critical importance of moving one’s gold holdings out of third party storage systems into one’s own possession. Gold only provides full protection when in one’s own possession.

Invest in precious metals today! Contact us for details.

Invest in precious metals today! Contact us for details.

The MF Global debacle is proof that valuables such as gold and silver are not safe in third party storage systems. This is especially true if one considers that a treasurer at the now bankrupt US-based MF Global, Edith O’Brien, someone who has advised the U.S. Commodity Futures Trading Commission (CFTC) a year ago at special roundtable discussions pertaining to the Dodd-Frank laws, has “…supposedly transferred $200M of customer funds to JP Morgan on the last day of business for MFG before they declared bankruptcy” (CFTC Consults with MF Global Conspirator To Shape Law She Breaks 1 Year Later, The Road to Roota Letters, Bix Weir, December 2011). If this is true, it just shows how deep and wide fraud and deception are running in the financial system, especially considering the remarks Ms. O’Brien made during a special roundtable discussion at the CFTC last year pertaining to individual customer collateral protection: “I think that a number of individuals from this table don't have the benefit of the extensive experience of the FCM structure, and I've heard two hours of dialogue about seg customer movements between the clearinghouses and the exchanges, and as the conversations continued, it appears that this is extraordinarily myopic view of the current safeguard structure that operates in America and has effectively worked to the best of my knowledge for years" (Transcript CFTC roundtable discussion pertaining to Individual Customer Collateral Protection, p.103, 22 October 2010, Washington D.C.). Even if O’Brien has not illegally transferred the $200M of customer funds to JP Morgan as alleged, given the fact that MF Global is now bankrupt and that individual customer collateral protection has flown out of the proverbial window, the comments made by the self-appointed expert on customer collateral protection are stinking of hypocrisy, deception and fraud. In fact, it is truly disgusting that the CFTC had asked the advice of people such as O’Brien before the Dodd-Frank laws, which aim to protect investors, have been implemented. How can you ask advice from people pertaining to new laws if those laws are designed to control the very ones that you’re asking for advice? It simply doesn’t make sense, except if you’re in the business of bullshitting to state it mildly.

Invest in precious metals today! Contact us for details.

Invest in precious metals today! Contact us for details.

Given the above, it is clear to us that regulators cannot be trusted. Make no mistake about it; they only exist at this stage to give a false sense of security to investors. In fact, it would be safe to assume that all investments held in the current financial system are at risk. Thus, if you have for one gold and silver stored in a third party storage system, it is recommended that you move it into your own possession a.s.a.p. (otherwise you stand to lose everything!). If you at this stage don’t own any precious metals such as physical gold and silver, or the majority of your investments are still held in the fiat or debt-based monetary/financially system, then it is time to wake up, smell the roses and act before it’s too late.