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In the same category
Clients denied gold at major banks as shortage intensifies
Published : May 24th, 2013
510 words - Reading time : 1 - 2 minutes
( 5 votes, 3.4/5 ) , 2 commentaries Print article
 
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Second written part of the same audio interview we posted yesterday:
Greyerz: “This week I want to talk about what we are seeing in the physical gold market, and why there is a disconnect in that market. We transfer a lot of gold from Swiss banks and other banks into private vaults for investors.

More often now, than ever, we are encountering incidents when the banks are putting up all kinds of obstacles for these transfers. Signs of potential shortage of physical gold started with ABN AMRO in March (when they) declaring that they would renege on their commitment to redeem gold accounts in physical gold….

“Instead they would redeem in cash. The custodian for ABN AMRO, for the gold, is UBS, and UBS decides to what extent they hedge the ABN paper gold position and where in the world they hold it in storage.

So as there is no more physical redemption of the ABN AMRO gold accounts, it seems therefor that these accounts are no longer backed by physical gold. It’s just backed by paper, and this is of course typical for the paper market, Eric. this paper market, which is 100 times bigger than the physical market, probably has zero percent backing of physical. This is why ABN stopped redeeming in gold.

Then, last week we had an investor being refused to take his physical gold out of a major Swiss bank. They told him that the regulatory authority prevented the bank from giving the client his physical gold. That is of course total nonsense, and eventually we helped the client to get his gold out of the bank.

Another of our clients was told by a major Swiss bank that he can only take out 100,000 Swiss francs of physical gold every six months. They blamed money laundering and terrorist activity for this decision. Yet another client was again told by a major Swiss bank that his storage fees would be going up substantially. When he complained he was told that he should convert to paper gold.

And finally, Eric, another big bank, which has an ETF, told a client who wanted to transfer gold out it that he would have to wait at least two weeks for the transfer. You just wonder why a major bank that is supposed to hold substantial amounts of physical gold needs two weeks of more to transfer gold to a client.

So all of this, Eric, points to the fact that there is a major shortage of physical gold in the banks. These banks obviously don’t want to lose customers, but their behavior and the reluctance to deliver also points to a real shortage in the physical market.

So the disconnect between the paper and the physical market (for gold) is continuing. Refiners still have major production delays and demand continues to be very high, ‘No matter how much they produce,’ as one refiner told me today. And premiums are still high also.”

Click HERE to listen to the same full KWN Interview on this subject 20 May, 2013

 

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Well i can tell everyone this. It takes less than a minute to sell or buy your gold. The buyer will accept immediately. The seller will try to delay delivery on a contractual arrangement for 3 days. That was my recent experience. As a side note. If I b  Read more
S W. - 5/24/2013 at 9:28 PM GMT
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Egon von Greyerz

Egon von Greyerz is the managing director of Matterhorn Asset Management AG based in Zurich Switzerland. He specialises in wealth preservation with the special emphasis on physical gold stored in Zurich outside the banking system.
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Well i can tell everyone this.
It takes less than a minute to sell or buy your gold.
The buyer will accept immediately.
The seller will try to delay delivery on a contractual arrangement for 3 days.

That was my recent experience.

As a side note.
If I buy a house for $1m and 22kg of gold for $1m Aud, what is the better investment? Both are solid assets. Both go up and down etc in price.
The house needs maintenance, insurance, rate payments but can earn you rent and you have to pay tax on that. It takes 3 months to sell a house and get paid.
The gold is easily stored and costs next to zero maintenance. You can borrow against it and earn interest also. You can sell it in less than a minute.
You can Barter with gold. You can sell fractions of your gold. You cannot do either with a house.
Rate :   2  1Rating :   1
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First and foremost the fact that the ABN AMRO "story" is a prime example of what happens when nobody bothers to actually carry out any investigation yet chooses to spin the story into their own confirmation bias. As per ABN AMBRO themselves:

“Until 2009 ABN AMRO had a small bank that traded in physical gold called Hollandse Bank Unie (HBU) located in Rotterdam. Following our integration with Fortis Bank Netherlands, ABN AMRO was required by the European Commission to sell a part of its commercial banking portfolio in the Netherlands to Deutsche Bank. This was publicly announced at the time and included the sale of HBU, along with the transfer of HBU clients to Deutsche Bank. These HBU clients were able to use ABN AMRO facilities during the transition phase, and Deutsche Bank also offered its HBU services to ABN AMRO. Deutsche Bank subsequently announced last year that they would cease HBU activities in the Netherlands from 1 April 2013 – including this facility for ABN AMRO. We recently sent a letter to small number of affected clients, advising them that we can no longer make use of the HBU facilities provided by Deutsche Bank from this date. ABN AMRO has not provided these services directly since the sale of HBU, so there is no change to our offering – only to the facilities provided by Deutsche Bank. We have also found a new provider for these services, that is UBS.”

Source: http://forexmagnates.com/abn-amro-halts-physical-gold-delivery-another-sign-all-trading-is-simply-for-pieces-of-paper

Here's the letter from ABN AMRO from 2011 https://www.abnamro.nl/en/images/Generiek/PDFs/090_Expats_Pages/Investor_Giro_Conditions.pdf

Thanks to the hard work from the folks at Screwtape Files,

It clearly states "You have no right to the physical precious metals in
which you invest."  It goes on to explain that you can sometimes get metal, but that you cannot under extreme market conditions and such.  And it clearly states "Even if DBN goes bankrupt, you have no right to the
physical precious metals in which you invest."
 
Obviously an allocated account, right? 

Next, your piece discusses an investor being refused to take his physical gold out of "a major Swiss bank". They told him that the regulatory authority prevented the bank from giving the client his physical gold. YOU helped him get it out ... So, THEY HAD IT i.e. A non event given that the bank had the gold to give him after YOUR intervention. This story actually speaks to availability of said gold.

You then go on to say that another of your clients was told by a major Swiss bank that he could only take out 100,000 Swiss francs of physical gold every six months as the bank claimed money laundering and terrorist activity measures for this decision. As you know, many institutions have very tight money laundering rules in place since 9/11 but again, your major swiss bank goes UNNAMED. How convenient.

Then, yet another client is told by yet another "major swiss bank" that his storage fees would be going up and was advised to convert to paper gold when he complained. - again, you don't name the bank. WHY?

Finally, "yet another big bank, which has an ETF" told a client who wanted to transfer gold out it that he would have to wait at least two weeks for the transfer". - No name of the bank ... WHY? .. How "substantial" was this client's order? --- don't answer that, it's not relevant.

You then go on to make the highly speculative inference that this.... "points to the fact that there is a major shortage of physical gold in the banks. These banks obviously don’t want to lose customers, but their behavior and the reluctance to deliver also points to a REAL SHORTAGE in the physical market"

Take a step back and re-read your piece Egon.

Not one of these banks REFUSED outright delivery (one actually COMPLIED on 'your insistence'). Another of them was going to increase fees -- not deny delivery and yet another was happy to comply but allegedly needed a couple weeks.

While I completely understand that your clients' information is private, if you are making allegations that "BIG BANKS" are refusing delivery then please, RELEASE the names of the banks. There is nothing wrong with that if your claims are true.

As for your attempt to connect an increase in fees to a shortage of gold, how's this for FACT:

The storage hikes were well known in Jan of 2013 when Credit Suisse and UBS announced a 20% hike to their existing fees that ran at roughly 0.05-0.1% of the value of the bullion. Why are you trying to pass this off as "news exclusive to your client" in an attempt to "sex up" this fairy tale?

Did you mention that as per that same piece, non-Swiss banks are considering building new vaults in the country to take advantage of the move by UBS and Credit Suisse? Obviously there must be metal to be stored if building new vaults is being considered.

Source: http://www.mining.com/swiss-banks-hike-charges-to-store-gold-in-their-vaults-20-23092/

So, why don't I have a problem in saying "UBS and Credit Suisse" announced storage fee hikes yet you have a problem naming the banks??

SImple ... could it be because your information and stories are harder for the public to fact check when you exclude key points?

I've always said that everyone promoting a gold conspiracy theory has something to sell. Creating fear and suspicion around major bullion banks that store gold for clients wouldn't have anything to do with the fact that you, Egon, SELL non-bank storage would it (wink)? This fact can be easily verified by anyone who takes the time to read Egon's interviews with King World News.

Like I said ... Everyone with a story has something to sell.
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