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Safety Deposit Boxes and Other Bank Oxymorons

Stock markets at highs, precious metals under pressure and bond yields down, what more could you want to "show" that all is well across the land?

-Bill Holter, Miles Franklin

Japan just announced a $1.4 trillion "printing/stimulus" package over the next two years.  $1.4 TRILLION!  Let me put this in perspective for you; this will literally double their money supply in two years.  It is not one $700 billion U.S. TARP plan; No, it's TWO - back to back - from an island the size of New Jersey!  But wait; let me REALLY put it into perspective.  At today's price of Gold, it's equal to seven YEARS of GLOBAL PRODUCTION.

-Bill Holter, Miles Franklin

Manipulators, governments and traders can paint gold however they wish, but to maintain lower levels they must feed it daily. Once a sovereign appears the manipulation is finished on the down side. Gold will trade to above $3,500.

-Jim Sinclair

My opinion remains unchanged about what the gold market is going to do.  I may have been off by a few days, but everything I see indicates the correction has run its course, and will be proven this week as the physical market is calling the government's bluff.

-Jim Sinclair

If Cyprus is used to take depositors' money, that's a key change.  If this is in fact the new strategy, then in a very short period of time you are going to see that all the money put into the financial system from 2008 forward was wasted.  The Chairman's effective resignation, by failing to stand for reappointment, would indicate he sees all his efforts have been destroyed, and this will be a key signal the end is at hand.

-Jim Sinclair

If you don't have your money where you can get it, without a middle man, you don't own your money.  But with gold and silver, and you are seeing what happened in Cyprus, you can buy what you need; and you may even need it to buy your freedom.

-"GERALD CELENTE, PATRIOT"

The end game is coming quick.  There is only so long they can keep pulling this off.  I believe that by the time the New Year comes, the game will be over.

-"GERALD CELENTE, PATRIOT"

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The catalyst for this RANT is reader concerns regarding this passage from Jim Willie's latest newsletter (Hat Trick Letter); of the alleged THEFT of gold coins from an American safety deposit box - and Patriot Act approval of such acts...

THE CIA CONFISCATION HAS BEGUN AT BANK SAFETY DEPOSIT BOXES. THE REPORTED SEIZURES ARE NOT YET WIDESPREAD; BUT EXPECT THEM TO BE SO. THE PATRIOT ACT LEGALLY PERMITS THE THEFTS, WHICH WILL PROVIDE ADDITIONAL GOLD SUPPLY FOR WALL STREET BANKER ROBBER BARONS.

A Steve Quayle subscriber reported the two dozen gold Krugerrands he kept stored in his safety deposit box have been taken, in a bold swipe. The Fifth Third Bank is located in Cincinnati, the site of the sanctioned theft. After the confiscation, the bank manager sheepishly informed the man that a CIA agent was the culprit who cleaned out his supply of gold coins, but all the stored US dollar bills were left untouched in the safety box. Recall broad warnings concerning the rules delineated within the Patriot Act, which forbids usage of bank safety boxes to hold coins, jewelry, or any metal items of wealth. Only documents, contracts, papers, photographs, and other non-metallic objects like a treasured scarf are permitted. They have finally struck, thefts sponsored by the US Government and its security agency overseers. Expect the location of thefts to grow much wider, with more prevalent reports.

See the Silver Doctors article below:

Gold Confiscation Begins? Report of 2 Dozen Gold Krugerrands Stolen From Safety Deposit Box by CIA

I cannot confirm or deny if the government actually has such rights; but I - and MANY others - suspect so. Thus, my initial response to the half-dozen or so emails I received was thus...

On a daily basis, Miles Franklin's writers come across dozens of articles.  Nearly all are "confirmable," but sometimes not.  Everything on the internet is not true, but David, Bill Holter and I are experts at separating the wheat from the chaff.

I, too, came across the Willie article stating that the government has the right to search and seize safety deposit boxes under the Patriot Act.  It certainly makes sense, but I am not about to read the 57,000 word Act to "confirm" it.

Irrespective, it matters not; as there is enough vague language in such acts to enable the government to do essentially ANYTHING it wants; which is EXACTLY how they were PURPOSELY created.  For example, FBAR requires disclosure of holdings in foreign financial institutions - without defining what "foreign financial institutions" are.

Given what just occurred in Cyprus; where governments essentially STOLE customer bank accounts; do you really believe your safety deposit box is safe?  I have been SCREAMING for people to take ALL assets out of banks for years; which is EXACTLY what I have done personally.

I am still not sure of the Patriot Act's EXACT language in this regard - and may never be exposed to it (please contact me if you have read it!). However, just this weekend, another article was written on the topic...

U.S DEPARTMENT OF HOMELAND SECURITY HAS TOLD BANKS - IN WRITING - IT MAY INSPECT SAFE DEPOSIT BOXES WITHOUT WARRANT AND SIEZE ANY GOLD, SILVER, GUNS OR OTHER VALUABLES IT FINDS INSIDE THOSE BOXES!

...referencing yet another from 2011; so clearly, there are numerous others that believe it so. Again, whether or not it is matters not; as NOTHING will be 100% safe from the government's clutches as FINANCIAL ARMAGEDDON unfolds...

Do not use Safety Deposit Boxes - January 2011

As for bank accounts themselves - which for generations have been considered the "safest" way to store savings; clearly, Cyprus changes that misguided perception FOREVER...

Deal Reached for Cyprus - 40% of deposits will be stolen. Banks doing it without Parliament vote

...particularly as the deal's architect announced "bail-ins" are the new EU "template"...

Why Mr. Dijsselbloem is Right and Cyprus is a Template for the Eurozone

Bank deposits were STOLEN from citizens with no Parliamentary approval; and in return, given WORTHLESS bank "equity"...

Big depositors in Bank of Cyprus to get 37.5% equity

...which should TERRIFY all Western citizens; particularly as a "joint paper" by the U.S. Federal Deposit Insurance Corporation (FDIC) and the Bank of England endorsed just such THEFT; dated December 10^th, 2012...

Think Your Money is Safe? Think Again: The Confiscation Scheme Planned for US and UK Depositors

In other words, whether your assets are held in banks, security deposit boxes, or any aspect of "the system," they are in GRAVE DANGER...

Sinclair - you are "out of the system" if

...and thus, WHAT ARE YOU WAITING FOR?...

PROTECT YOURSELF, and do it NOW!

Call Miles Franklin at 800-822-8080, and talk to one of our brokers.  Through industry-leading customer service and competitive pricing, we aim to EARN your business.

Disclaimer: The opinions expressed above do not necessarily represent the views of Miles Franklin Ltd. We urge our readers to do their own due diligence before making decisions on where to store their metals. Please refer to our full disclaimer below.

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Hi Andy,

I don't know if you remember me, but I live in Thailand and am 100% in PM. Today, when I walked by a Gold-shop here in Bangkok, there was a long queue outside. Since I am curious, and also have seen how the cartel have smashed down Gold the last 2 days, I walked in and asked what's happening...and.... EVERY Gold-shop in Bangkok is out of Bullion...not 1 ounce is possible to buy, and they only have some jewelry for sell. To buy Bullion you must order and wait (at least) 5 days.. and you can only order 2.5 ounce per person. And they stopped taking orders at 3pm today as well.

Later on, I saw a long, long queue outside many Gold-shops.. and the info I got was there is not 1 ounce of Gold-bullion to buy in the whole of Bangkok (possibly the whole of Thailand). I thought this is of interest for you! The Gold is going down in price like everyone is selling...while there is no Phyzz to buy at all in the whole Thailand. Frankly.. I'm shocked... Thailand is a huge Gold community.. .and no one has ever heard about gold being sold out here before.

Keep it up Andy,

A

____________________________________________________

Andy,

I await your ranting insight in my mailbox every day.  You and the entire [Miles Franklin] team are doing a great public service.  I have been out of "paper" and into PM's (90% AG) for almost 3 years. This question was presented to me and I did not have an adequate answer ...

If the U.S. can "print" all of the money it wants  (for now) AND simultaneously be complicit in suppressing  PM prices, then what is to prevent them from buying all of the physical gold and silver there is available?

Even if the supply started to dry up as a result, since the spot price is dictated by "paper contracts" and not physical supply, the price would continue (at least for awhile) to stay artificially low.  And, if the price started to rise, it still wouldn't matter ... just print more money to pay for it.  As long as bullion suppliers and coin dealers are willing to accept worthless paper in exchange for precious metals this would seem like a no-brainer!  What am I missing?

S

Steven,

You are dead on regarding the potential for such a strategy to be attempted; although I highly doubt the U.S. is buying PHYSICAL, as it has been their own secret dishoarding of the Fort Knox gold that has likely been the cornerstone of the U.S. "strong dollar policy." There is simply not enough PHYSICAL gold available for them to buy enough to meaningful increase their position without causing prices to skyrocket.

That said, any large entity capable of circumventing naked shorting rules could do just that; and many have speculated the Chinese government has been doing so for years. They know full well they'll never be prosecuted; and also, that if the CFTC attempts to call them out, they could just "financially nuke" us by selling Treasuries. This, too, is speculation, but makes much more sense than the U.S. shorting paper and buying physical.

Of course, I'd bet many Cartel "insiders" are doing so personally!

Andy

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Hi Andy,

My Question:

Can you direct me to the source data point that shows silver and gold are being diluted 100 to 1?

I've traded in the stock market for years and I don't question that PM's are manipulated. I just want to know where to look and how to calculate the ratio.

I thought I'd share something I've prepared for my Sunday School class that's interesting:

I read an article that said if you bought Philip Morris stock 50 years ago for $1,000 you would have 5.8 Million today.

I calculated that if you bought AAPL 28 years ago at the low and sold at the high you would have ~$300,000 today

If you bought Gold 100 years ago you would have 80,000 today.

At first glance that sounds like Gold is the worst investment, but when you offset for the loss of purchasing power:

Philip Morris would be worth $72,000

AAPL would be worth $3,750 and Gold would still be worth $80,000, making it the best investment of the past 100 years.

Going one step further; one could argue that using a purchase of gold

100 years ago is unfair; so if you bought the Gold at the same time you bought the stocks and again offset for the loss of purchasing power:

Philip Morris would be worth $128,000 and gold would be worth $44,800

AAPL would be worth $61,224 and gold would be worth $4,800

But if we're really trying to be fair we should also offset the price suppression as well:

Making Philip Morris worth $1,280 and Gold worth $4,480,000

AAPL worth $61 and Gold worth $480,000

However, the last bit hinges on the idea that the suppression is 100 to 1. Hence my question.

Note: I used a gold value of $1,600

Keep up the good work Andy!

T

T,

Jeff Christian is pure evil. I should know, he interviewed me back in 2005. He accidentally admitted to the CFTC that 100x more PAPER exists than PHYSICAL; although even he (owner of the silver consultancy CPM group and a former Goldman Sachs trader) likely doesn't know the REAL number, which is likely much higher than 100:1.

http://www.bullionbullscanada.com/index.php?option=com_
content&view=article&id=10586:jeffrey-christians-1001-blunder&
catid=48:gold-commentary&Itemid=131

That said, we don't need his comments to confirm the obvious; as each day FAR MORE than 100x the amount of PMs (particularly silver) "trades" than the amount of metal in existence.

BTW, that is a great exercise you did for your class!

Andy

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Andrew ("Andy") Hoffman, CFA joined Miles Franklin as Marketing Director in October 2011.  For a decade, he was a U.S.-based buy-side and sell-side analyst, most notably as an II-ranked oil service analyst at Salomon Smith Barney from 1999 through 2005.  Since 2002, his focus has been entirely on Precious Metals, and since 2006 has written free missives regarding gold, silver, and macroeconomics under the moniker "Ranting Andy."  Prior to joining the company, he spent five years working as an Investor Relations officer or consultant to numerous junior mining companies.   An archive of Andy's "RANTS" can be found on the Miles Franklin Blog here.