Sprott PM's Round Table with Eric Sprott, John Embry & Rick Rule
- Thread starter theiain1
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House
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:lol: great analogy!
One of the presenters mentioned allocated gold being rehypothecated, any ideas as to who he was alluding to with this comment?
Hadn't really considered Pt until listening to this, some very bullish points made about it so will investigate further.
Thanks for posting the vid
G
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Guest
I like's Sprott's observation that the amount of money that he sees pouring into precious metals is equal with gold and silver, meaning that 50 times the amount of silver is being bought than gold. He states correctly that this trend cannot continue because the ratio in the ground and the ratio being pulled out of the ground and the ratio of available silver to buy vs gold is far, far lower than 50:1.
House said::lol: great analogy!
One of the presenters mentioned allocated gold being rehypothecated, any ideas as to who he was alluding to with this comment?
Hadn't really considered Pt until listening to this, some very bullish points made about it so will investigate further.
Thanks for posting the vid
House my guess would be companies like HSBC which warehouses the gold for GLD. If I recall correctly, the metal can also be held at sub custodians and that metal is not subject to audit (that may be for SLV vs. GLD). I also recall reading that HSBC comingles gold for itself, its customers & gld in the location. That factor would make it real easy to conceal hypothecation.
Plus there have been other instances of purchased gold being stored atsome banks. When the owners requested the gold, each one had to fight to get the gold and even when the gold was received the bars were new ones and not the ones they originally stored at the bank and upon which they paid storage fees.
Take the scenario where gold is loaned by a central bank to a company like Morgan Stanley, but that the gold stays at the central bank. MS then sells the gold to multiple customers and charges storage and insurance fees on gold that is not in its possession. Pretty sweet deal for the bank.
The reason I used Morgan Stanley is that they were caught selling non existant silver to a customer and collecting the storage and insurance fees for years.
I believe what GATA refers to is gold backing the sales of gold futurs contracts. Outside of futures contracts, the amount of hypothecation is not known.What is known is that the banksters know that they can get away with hypothecation, rehypothecation, etc. When you are robbing banks and the police continue to look the other way, you will rob more banks and bigger banks and you won't stop until all the banks are empty.