ABN Amro leaves gold investors empty handed

GeoTrendlines/Frank Knopers

“ABN AMRO leaves gold investors empty-handed, as the bank closes all weight accounts for gold, silver and platinum. Approximately 2,000 customers who have precious metals in their weight account at the bank have to sell them before April 1. If they fail to do so, ABN AMRO will sell their positions at the current market price. The bank cannot guarantee that they will sell the precious metal at a favorable price.”

USAGOLD note: The ABN Amro situation illustrates with a high degree of clarity why it is important to own metal in hand rather than in some paperized version of gold ownership subject to the whim of the institution managing the account.  In this particular case, we cannot help but note that ABN Amro’s closure of paper gold fund comes at a time when bullion is in short supply and owners of the fund are likely to have a stronger than average desire to take delivery of the position.  Investors of the fund were forced to sell their positions at a time when it is very difficult to acquire a replacement in the open market. A bird in hand, as the old saying goes, is worth two in the bush.

Repost from 3-26-2020