When You Fail to Steal People's Gold... Try, Try Again

[Virgil Showlion]

Excerpted from The Bankers’ India Gold Grab:

In previous commentaries , readers were warned that Western bankers were once again targeting the gold market of India with more of their fiendish plans. This time, they convinced (bribed?) India’s new, corrupt government – the Modi regime – into orchestrating a scheme to steal the gold from its own people.

The nexus of this scam was what was announced as “the gold deposit scheme.” Even the Conspirators themselves were unable to come up with a name to make this naked fraud sound legitimate. The fraud itself is simple, indeed utterly simplistic.

Indians “deposit” their gold into the clutches of their thieving government and are paid (paper) “interest” on those deposits. The fact that this was a naked fraud was immediately apparent. As the bankers tell us all the time, “gold generates no income.” How could India’s government pay the interest on the gold coins/bars/jewelry sitting in its vault supposedly held in trust for its depositors?

There was no immediate answer to that question, because there could be no (legitimate) answer to the question. Indeed, in legitimate bullion storage arrangements, depositors pay a fee to have their bullion safely stored for them, because while the gold generates no income, the costs of storing such gold are significantly greater than zero.

Finally, reluctantly, the Conspirators made explicit what was already totally obvious:

The deposited gold will be auctioned off from time to time to meet domestic demand for jewellery and coins.

The good news (ibid., bold by me):

With enormous media and government fanfare, the “scheme” was officially launched at the beginning of November. However, these same media and government mouthpieces were much, much quieter a couple of weeks later when they released details on the initial response to this obvious fraud.

A gold deposit scheme launched amid fanfare by Indian Prime Minister Narendra Modi two weeks ago has so far attracted only 400 grammes, an industry official said on Thursday, out of a national hoard estimated at 20,000 tonnes.

I guess Indians aren't as stupid as TPTB thought they were.

Don't think they won't try the same thing here. Assuming they don't just confiscate private gold first.

[Aman A.K.A. Ahamburger]

Ah, Sprott.. Well when you lose your investors millions on paper selling them "gold", you have to look for some kind of scapegoat.

[ArchietheDragon]

more gold bugs that bought paper gold...     If you want gold, buy gold!

[Virgil Showlion]

Jan 7, 2016 11:36:35 GMT -5 Aman A.K.A. Ahamburger said:

Ah, Sprott.. Well when you lose your investors millions on paper selling them "gold", you have to look for some kind of scapegoat.

They haven't lost anything. The gold is right there in the vault.

That's the great thing about gold bugs who hold physical. They don't give a damn what the paper value is. It's a fiction anyway.

Now admittedly I'm not sure if Sprott's ETF is 100% gold-backed. And frankly, if you're going to hold gold, hold it in your own vault, under your own control.

Suffice it to say I'm not endorsing Sprott either.

[Aman A.K.A. Ahamburger]

Jan 7, 2016 11:48:54 GMT -5 Virgil Showlion said:

Jan 7, 2016 11:36:35 GMT -5 Aman A.K.A. Ahamburger said:

Ah, Sprott.. Well when you lose your investors millions on paper selling them "gold", you have to look for some kind of scapegoat.

They haven't lost anything. The gold is right there in the vault.

That's the great thing about gold bugs who hold physical. They don't give a damn what the paper value is. It's a fiction anyway.

Now admittedly I'm not sure if Sprott's ETF is 100% gold-backed. And frankly, if you're going to hold gold, hold it in your own vault, under your own control.

Suffice it to say I'm not endorsing Sprott either.

I agree, a big safe is way cheaper than any holding fee - especially when your safe is also a gun case.

I was thinking more along the lines that Sprott is doing exactly what these big bad Western bankers are supposedly doing, and Sprott isn't even paying interest, just telling people that their paper gold is worth more.

As far as the ETF being backed 100%, I think you have a different gold thread that shows what would happen if people went to redeem their "gold holdings."

[jarrett1]

Over the past 35 years, the average annual real (inflation–adjusted) rate of return on gold was 1.56 percent.

However, it has fluctuated over shorter time periods.

WHY would anybody buy this shit...a stupid S&P index fund would have beaten that...

so what can you say about anyone who is into gold?....they just must be stupid!

C'mon Aman your smarter than any Mod!

[Aman A.K.A. Ahamburger]

It's like you posted about on FB; my attitude is too positive to bother with gold. I'm also a data dependant geek; so I don't mind letting dividends build dry powder when the data says so... Also, I have become all about building assets that are going to provide income; love building me some elevators to get in on the ground floor and ride it to the top!!

Although; it would have been kick ass to get a actively managed AI ETF going... Ah well, there is always another day, as they say.

www.sec.gov/Archives/edgar/data/1467831/000089418917003078/etfmt-equbot_485a.htm


www.etfmg.com/services/