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Bullion Vaults Run Out of Space on Gold Rally

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posted on Sep, 22 2011 @ 09:21 AM
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I see that there are several threads going regarding the volatility of the "markets" and that the price of precious metals is falling.

Now I see this article at www.bloomberg.com...

Deep in the 7.4-acre Singapore FreePort next to Changi International Airport’s runways is the bullion vault of Swiss Precious Metals, behind seven-metric-ton steel doors built to survive a plane crash or earthquake.

The rooms are almost full after demand rose fivefold in the year since the Geneva-based company opened the facility. The firm plans an extension, and relocated Chief Executive Officer Jean-Francois Pages to Singapore last month to cope with the surge of investors willing to pay as much as 1 percent of the value of their holdings each year to keep them secure.

“The European debt crisis and its impact on the solvency of European financial players are driving European customers to find refuge in tangible values like physical gold and other precious metals,” Pages said. Demand “is totally compatible with the current financial and political global turmoil.”


There is even talk of the Central Banks expecting a run on the southern European banks --
Now, who owns these "vaults" that are running out of space? These "vaults" that people trust because they have mile-thick walls, insurance, paperwork, etc.? Oh, it's the banks!!


Swiss Precious Metals, whose Singapore vault will be 80 percent full by December, charges as much as 1 percent of the market value of gold and silver stored, depending on the quantity, Pages said. The charge covers storage, insurance and related documentation, he said. The company has already arranged for more space for expansion.

If insurance costs rise by more than 50 percent, then the firm may ask for higher fees, according to Pages, who predicts gold may reach $2,500 by the end of the year. Swiss Precious Metals is owned by Geneva-based Palaedino Group SA and Euroasia Investment SA. Euroasia Investment is an investor in the Singapore FreePort through affiliates, according to Pages.

Lloyd’s of London, which offers so-called specie insurance, declined to provide information on rates or demand. Brink’s declined to elaborate on storage and insurance costs. JPMorgan, which also rents space at the Singapore FreePort for its gold vault, declined to comment.
Yep, the banks! Who "declined to comment."

What kind of insurance does one get from a "vault" owner? Fiat currency replacement?

Do you all see how this is set up? The banks offer to "protect" your gold in THEIR VAULTS, and give you more paper(work) to make you feel secure. But the gold or silver is IN THEIR POSSESSION.

So then the markets crash, world-wide. The people have lost all their algorythm-mythical "wealth", which was really only numbers on a piece of paper or pixels on a computer screen, so they decide they better go get what cash they have from the bank where it's deposited. Except, the banks don't have that much cash on hand. They only have $10-$20 per $100 that is in each "account". That's it.

So, sorry, no cash to give you. Window closed. Literally. You go home, thinking, "Well, at least I have that gold bullion in Brinks' vault! Whew!" and call Brinks, only to find out that the government has SEIZED all the gold.

People, if you are lucky enough to have a tad of gold or silver, do NOT hire a vault somewhere to "guard" it. Keep it in a secure place, the whereabouts of which are known only to YOU and your immediate posse.

I have a hunch that it's all falling down right now, this house of cards. I'm happy about it, for one. But I'm prepared...and have been for some time.
I would like nothing more than to see the Soros and Rockefellers and Dimons first stripped of their clothing, then their dignity, and finally their freedom.




posted on Sep, 22 2011 @ 09:44 AM
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Thought they'd run out of gold eg Fort Knox



posted on Sep, 22 2011 @ 09:46 AM
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www.bloomberg.com...

Rogoff Sees Risk of Southern Europe Bank Run, Handelsblatt Says



Kenneth Rogoff, a former chief economist at the International Monetary Fund and now an economics professor at Harvard University, said the biggest risk to the eurozone at present is a run on southern European banks, Handelsblatt reported today.

In an interview with the newspaper, Rogoff said people may move their deposits to banks in safer countries such as Germany. A sovereign debt restructuring in some euro area states shouldn’t be “a taboo,” Handelsblatt cited Rogoff as saying.

That's the entire story so far from bloomberg.

It almost feels like a "suggestion", doesn't it? Maybe it's just me. Hankering for some drama to end the banksters' evil grip on the world. I personally have nothing for them to steal, and they don't have any of my assets to "play" with...I'd just like to see some justice.



posted on Sep, 22 2011 @ 01:31 PM
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Gold hit a cyclical bottom in 1999. It’s been moving up ever since, logging a positive return every year in the past 10. That’s soon to be 11, as the metal is up nearly 25 percent year-to-date.
Most investors already know about gold’s record low. What they don’t know is that it was a state of capitulation, the level where the last person long on a losing trade finally throws in the towel.
That’s because 1999 was the year when the United Kingdom cried “uncle” to falling gold prices and started selling off its gold stockpile en masse.
You can blame then-Chancellor of the Exchequer Gordon Brown (yes, the future prime minister) for panic-selling. Brown tried to unload so much gold that the price dropped nearly 10 percent in a matter of weeks, reaching a low of $252.80 in July, 1999.
And yet, you also have to realize that other countries and central banks were doing the same thing to their gold supply for over 15 years before the UK sales.
Indeed, European banks haven’t been net buyers of gold since 1985 . . . at least until now.
According to a report in the Financial Times, European banks have bought over 25,000 ounces of the metal (yes, at market prices) year-to-date. To be fair, that’s less than one ton of gold. It’s chump change compared to the massive purchases by Russia, India, and China’s central banks.
But it’s the start of a major shift.
When central banks are net purchasers of gold, the price goes up. When they’re net sellers, the price goes down. And the fact that European central banks have started becoming net buyers at a time when there’s so much questionable paper debt floating around the EU is hardly a coincidence.
Gold bottomed when every European institution that wanted to be out of gold was finally out. Now they’re starting to come back to the table to buy again. When it reaches a frenzy in a few years, that’ll be a signal to cash out. For the time being, it’s a small, but incredibly bullish signal for gold.
Right now, however, bullion is still within 10 percent of its recent nominal high. There’s no need to rush to add to your gold positions. There will be plenty of opportunities to pick up bullion at better prices relative to its recent high.
And there will be times when the best way to play gold isn’t with bullion. Now is one of those times. For several months now, gold stocks have lagged gold’s performance. Despite some cost increases due to inflation, the majors have been expanding their operating and profit margins. In terms of assets, investors in the majors can buy an ounce of gold reserves for less than $1,200 per ounce.
Junior miners have more upside, but are also dependent on company-specific risks, typically involved with finding and bringing new reserves to market.



posted on Sep, 22 2011 @ 06:26 PM
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Gold has been moving up ever since 1971. It's increased per kilogram from £465.00 upto an estimate of £38,995.00

You can't lose in GOLD !!!

And Warren Buffet purchased one of the largest Silver caches in American history back in the late 1990's which has made him one of the top 400 richest person in this world.



posted on Sep, 22 2011 @ 06:28 PM
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I'm a member of KB Vision so I have nothing to worry about there.




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