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Starfirenv (< 20)

Much Ado About AU.. or ..How 'Bout a nice tall Donkeypunch

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August 03, 2010 – Comments (0)

It's generally known thay the BIS just added 346 "Tonnes" of gold to their store. Many who follow the "stupid shiney stuff" couldn't find a source of this weight added. First incredulity.
 http://www.bullionbullscanada.com/index.php?option=com_content&view=article&id=13461:the-bis-bs&catid=48:gold-commentary&Itemid=131
  Then, much sleuthing for naught. There were no spikes in the supply/demand
THEN the FT runs a story revealing that some European banks needed some cheese, so they went to the BIS. BIS says ok, but we need security- no more bonds, no more IOU's, no chits, promises, etc,  we want gold. Let's call it a loan that you can "buy it back" later.
   It turns out these banks used metal deposited in unallocated accounts to physically secure these loans. Seems it's in the fine print that they can use unallocated accts in "day to day opperations" and they "may be settled for cash".
  The FT link wont work unless you pay so here is GATA's take- "Gold in BIS Swaps Said to Have Come From Looted Bank Customers' Deposits" http://gata.org/node/8875
  The take-away, if you're storing metal at a bank, spend the extra dollar and make sure it's "allocated".
 The FT story is titled "BIS Gold Mystery is Unravelled".
Donkeypunch- from the GATA piece... "So odds are that the gold purchased from or supposedly kept at those commercial banks by gold investors is now being used by the international banking system to suppress gold's price against the interest of the investors who think they own it."
Regards.

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