The Latest Gold Fraud Bombshell

The Latest Gold Fraud Bombshell: Canada's Only Bullion Bank Gold Vault Is Practically Empty

By Submitted by Tyler Durden on 04/07/2010 10:30 -0500

Lenny Organ who was the person to enter the vault of ScotiaMocatta, says "What shocked me was how little gold and silver they actually had." Lenny describes exactly how much (or little as the case may be) silver was available - roughly 60,000 ounces. As for gold - 210 400 oz bars, 4,000 maples, 500 eagles, 10 kilo bars, 10 one kilogram pieces of gold nugget form, which Adrian Douglas calculates as being $100 million worth, which is just one tenth of what the Royal Mint of Canada sold in 2008, or over $1 billion worth of gold. As Orgen concludes: "The game ends when the people who own all these paper obligations say enough and take physical delivery, and that's when the mess will occur."

Also note the interesting detour into what Stephan Spicer of the Central Fund Of Canada, said regarding his friend at a major bank, who wanted access to his 15,000 oz of silver, and had to wait 6-8 weeks for its to be flown in from Hong Kong.

It is funny that central bankers thought they could take the ponzi mentality of infinite dilution of all assets coupled with infinite debt issuance, as they have done to fiat money, and apply it to gold, in essence piling leverage upon leverage.

www.zerohedge.com...



True?

Who knows? Why would this info be leaked as it would cause a very very huge bank run.


All the Gold and Silver are where...Hong Kong?

Besides the huge amount in Afghanistan. (hearsay)

The Vatican. Yes.

Maybe someone is after the Vatican gold now that they have all the other gold?

Check out the run on Silver and Gold. That in and of itself points to something.

Apparently it is all a huge Ponzi scheme according to more then a few articles so I am going to buy a bunch more silver very soon.

I"m wondering though, if perhaps they hire other countries to keep it for them? Or most of it?

I remember a while back, the U.S. had been keeping gold for several countries, and everybody freaked out when some of those countries took it back, having made arrangements to house it themselves.

But certainly these metals are increasing in value lately.

Didn't the military haul off Saddam's gold? I thought I saw a video snippit from CNN on that one time. But I'm sure good ol' Saddam had plenty of actual gold.

reply to post by whiteraven


who cares, canada has so much wealth in oil they dont need to back their currency in gold, i know that sounds radical to say but really what is the value of gold, you dig it out of the ground to pay people to guard it in a building that you can never touch... oil on the other hand!

reply to post by jakemill


The odd thing about Canada and its oil is who is developing it.

The US.

They are the primary investment partners in Canadian oil.

Gold is trading at a near all time high and if the current trends of the so called disappearing gold continues as the UK, the US and Canada seem to have lost track of their true amount of gold we will have some very upset persons.

Continuing on the trail of exposing what is rapidly becoming one of the largest frauds in commodity markets history is the most recent interview by Eric King with GATA's Adrian Douglas, Harvey Orgen (who recently testified before the CFTC hearing) and his son, Lenny, in which the two discuss their visit to the only bullion bank vault in Canada, that of ScotiaMocatta, located at 40 King Street West in Toronto, and find the vault is practically empty. This is a relevant segue to a class action lawsuit filed against Morgan Stanley, which was

______beforeitsnews/news/31000/The_Latest_Gold_Fraud_Bombshell_Canada_s_Only_Bullion_Bank_Gold_Vault_is_Nearly_Empty.html

reply to post by whiteraven


"Gold is trading at near all time high..."

That's NOT true, if you adjust for inflation.

At it's peak in 1980, one ounce of gold cost 2189 (2009) dollars. So if you bought an ounce of gold in 1980, you'd STILL be waiting (30 years later) just to break even on your investment.

www.inflationdata.com...

reply to post by jakemill


The majority of Canada's oil is locked up in shale, which makes it hard to extract, and ultimately, not very profitable. Oil still has to increase a bit in price to make Canada's huge deposits a real asset.

i just generally doubt the relevance of gold. both the US and UK once held gold standards but that economic system collapsed for both countries. gold also has no function, it doesnt pay dividents and it doesnt have an interest rate. your more on to something following the US contracts on canadian oil, we do the same with mexico, but besides jewelry what can you do with gold? the best investment really is military hardware, it inovates and unlike gold it can attack and defend, rolling off with the losers gold. personally i think we are nearing a gold bubble, and this is probably why the central banks are dropping thier gold reserves, no one wants to be the last guy at the party catching the check. give the bill to china

reply to post by Kaytagg


its a VERY good point you have and people dont realize actually how extremely dangerous investing in gold can be. most your life and your kids life can pass before that bad investment in the 80s will even break even. you could have cycled through so many diffrent themes in the economy since then as well. buy with caution!

reply to post by Kaytagg


the shale reserves act more as a ceiling if prices started charging up to 200 again. eventually it will be profitable to use but you have to invest in the drilling sites now so when prices go back up your not trying to play catchup on the supply side

reply to post by jakemill


Exactly. Nothing is as easy as it seems, and there is rarely a free lunch in this world..

So if you think gold is going to keep you super safe, think again.. it could just as easily follow one or TWO 30-year trends of doing nothing but losing money.


It's all about buying at the right price (obviously) and at the right time.


Really, though, it's better to own equities -- like McDonalds, Cocacola/pepsi, Microsoft, Exxon, etc. Because we'll always need food/drink/software/energy, and those companies are equipped to sculpt the market and seize on opportunities to increase profits and therefore make your shares worth more.

Gold will just sit there, the same as ANY commodity, and hedge against certain risks. Equities are dynamic and can adjust to changing times.

reply to post by Kaytagg


we might be the first people in the history of ATS that turned a thread debate into an investment strategy seminar. wasnt the original point of this thread to warn us of how yet again the sky is falling and we are all going to die/have something taken from us/ dogs and cats living together

reply to post by Kaytagg


Shhh...don't tell anybody that kind of stuff.

A dimes weight in silver will buy a gallon of gas and a gallon of gas used to be a dime.

What does that say?

lol

Has everybody noticed how Mcdonalds is downsizing its new meals.

The new mini Chicken? cheap. small.

I see this trend in groceries as well. Advertisement states lower price but when you get to said establishment the portions and quality is much smaller/poorer.


Off topic a bit but I often wonder about the intrinsic value of silver and gold and as far as I can see it is simply that we as humans value the metal.

Is their some other need for gold and silver?

Are they needed in some super conductor secret project somewhere?

lol



[edit on 12-4-2010 by whiteraven]

www.gata.org...

This news has been about for a while, but only now its being covered!

www.youtube.com...

Im worried because when the money is dry and no one will use paper, there might not even be any gold either.

So when the economy crashes the ones who are in power will stay in power although they've caused the problem.

reply to post by whiteraven


I remember hearing one ancient astronaut theory that aliens landed on earth thousands of years ago, and built human beings out of mud. Then they forced the human beings to mine gold for them, because they needed it for fuel (or something like that).


Short of that being true, gold really serves no purpose.


As warren buffet would say: "[gold] gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head."

Information supplied by GATA, Andrew Maguire and others have long pointed out that the precious metals market is leveraged at least 100-to-1. Remember the morgage derivatives market? Same thing. So if investors choose to take delivery of their metals, for every one hundred people who put down money to buy gold or silver only one would actually get what they paid for. The rest would get paper. Or alternatively, each would get 1/100 of what they had paid for.

If you have followed the Andrew Maguire/CFTC story you would know that the precious metals fraud that is ongoibng as we speak is the largest in history: $5.4 trillion dollars per year. And that is BEFORE accounting for derivatives, options, etc. There is no question that if this implodes the consequences would be catastrophic internationally.

Originally posted by whiteraven
Shhh...don't tell anybody that kind of stuff.

A dimes weight in silver will buy a gallon of gas and a gallon of gas used to be a dime.

What does that say?

lol

Way back when I was in high school a quarter bought a gallon of gas ...and that same pre-1964 quarter buys a gallon of gas today.....go figure ?

Folks that failed to invest in the best performing asset across the past decade (+400%) love to focus on theoretical extremes , eg , "If you had purchased Gold in 1980" etc...and/or statements like: "Inflation adjusted Gold is nowhere near it's former 1980 top"...but they never bother to speak of inflation adjusted stock values.....have you noticed ?

What about equities investors that bought the 1999 top ? Today at around 11000 the DJIA still hasn't recovered it's nominal 1999 high...inflation adjusted the performance is far worse...in 1999 dollars the DJIA is trading around 8400.

Inflation is on the creep , and those reductions in food container sizes/portions = inflation in another form. That Gold is trading well below it's 1980 inflation adjusted high is simply another bullish fundamental...it tells us how far we have yet to run...abusive monetary policies guarantee it.

Who was it that said "central banks are dropping their gold reserves" ?

Link

Central banks became net buyers last year...and the trend continues. If you chosse to fade the CB's...be my guest

Canada' "Mr. Gold" John Embry comments on bullish supply/demand fundamentals , and addresses a few of the issues raised in yesterday's postings. Namely , the effect of accommodative monetary policies on the future POG , creeping inflation , central bank accumulation , and Gold's inflation adjusted price target.

He also touches on what I believe to be an important investment op: The next cycle of consolidation in the PM mining industry as the majors acquire select Jr's in an effort to replace a rapidly declining reserve base.

Peak Gold and Inflation: A Perfect Storm
April 13, 2010

The inexorable onset of accelerating inflation, matched with a global decline in gold production, will underpin high-flying gold prices for years to come.

So says John Embry, a world-renowned long-time gold advocate and the chief investment strategist at Toronto-based Sprott Asset Management, which runs the Sprott Gold and Precious Metals Fund.

Full Text

[edit on 13-4-2010 by OBE1]

Originally posted by CAPT PROTON
Didn't the military haul off Saddam's gold? I thought I saw a video snippit from CNN on that one time. But I'm sure good ol' Saddam had plenty of actual gold.

A smidge....

[atsimg]http://files.abovetopsecret.com/images/member/51f5f9b5a707.jpg[/atsimg]

[atsimg]http://files.abovetopsecret.com/images/member/d2dec2c376e5.jpg[/atsimg]


Maybe it t wasn't about oil after all ?

Goldbugs...no respect!