NEW LEAK IS A WARNING FOR HOLDERS OF GOLD ACCOUNTS & ETFs | John Adams & Andy Schectman

Discussion in 'General Precious Metals Discussion' started by ozcopper, Aug 28, 2020.

  1. ozcopper

    ozcopper Well-Known Member Silver Stacker

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    Gold account holders and ETF shareholders who think the gold & silver metals are there under their receipts may be in for a shock, based on a recently leaked memo under the Freedom-Of-Information Act (FOIA,) and new data released under public advocacy pressure. The new admissions reveal that the physical gold ownership and location which are supposedly backing major gold accounts and ETFs are in large part leased (borrowed) and located continents away, which has not been explained clearly to share holders. And there are other serious risks and unanswered questions mounting.

    Australian professional economist John Adams of AdamsEconomics.com joins Miles Franklin CEO Andy Schectman for this panel discussion on the often misunderstood counter-party risks that many investors fall into when seeking the benefits of precious metals by cost-efficient indirect accounts.

     
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  2. Bullion_ron

    Bullion_ron Well-Known Member Silver Stacker

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    honestly a lot of countries physical is kept either in London or New York
     
  3. GoldenEye

    GoldenEye Well-Known Member Silver Stacker

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    Anyone know how the Perth Mint’s, Gold Corporation is affected by this issue?
     
  4. 66rounds

    66rounds Well-Known Member Silver Stacker

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    Say it with me:
    If you don't hold it, you don't own it.
     
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  5. leo25

    leo25 Well-Known Member Silver Stacker

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    Though people that don't hold it, don't want to own it. They just want to manipulate the price up in order to get more $$$.
     
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  6. GoldenEye

    GoldenEye Well-Known Member Silver Stacker

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    Not so simple when your super fund has a SDB with gold, and you can't access it due to covid issues. So I'm thinking I might be better off holding it as unallocated at the Perth Mint? It's very easy buying and selling unallocated over the phone.
     
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  7. 66rounds

    66rounds Well-Known Member Silver Stacker

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    SDBs have acted disgustingly during this lockdown. I would be thinking the same as you right now. Mix of unallocated and EFTs but with no expectation to ever receive physical
     
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  8. Oddjob

    Oddjob Well-Known Member Silver Stacker

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    Thanks for posting @ozcopper . A much better interview with / explanation by John Adams than the IOTP vid.

    So, bullion banks / brokers looking for 40 t of physical gold (refer 28 min into video above)...given annual global gold production is 2-3k t pa and reported global above ground gold stock is 198k t, if this claim by John Adams re the 40k t demand is correct, that would make life interesting....:)
     
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  9. SilverDJ

    SilverDJ Well-Known Member

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    Or if you want actual physical, buy allocated.
    Probably the same fees as a SDB anyway, and you can buy/sell/convert with a few mouse clicks, government guaranteed.
     
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  10. SilverDJ

    SilverDJ Well-Known Member

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    That's what allocated is for. All the benefits of unallocated, but you legally own it, and there is a physical bar sitting in the vault with your name on it.
     
  11. GoldenEye

    GoldenEye Well-Known Member Silver Stacker

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    It might be sitting in a vault with my name on it, but if I'm denied access to the vault how do I sell it?

    Originally I thought a private box would be better than a bank SDB as I would have access to it during an unexpected bank holiday, however, it's turned out that the opposite is true. At the moment the banks are open and my private box is closed. So I expect that I will soon be selling my PMs, closing my SDB, and buying unallocated at the Perth Mint.
     
  12. SilverDJ

    SilverDJ Well-Known Member

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    You click a few mouse buttons, and bingo, done. Magic.
    There is no difference between unallocated and allocated at the Perth Mint from the point of view of buying/selling/converting. It's just that allocated incurs a barring charge and has a storage fee, and of course you actually own that bar (and can have it delivered or picked up if you want). Unallocated incurs no fees apart from the transaction. Both are government guaranteed.
     
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