A good article on Commodities Reporter. This from the guys at Bullion Vault. They point out again, how tenuous holdings in many precious metals ETF's are. I continue to hammer on that theme. A lot of people are going to get really hurt by the antics being pulled with their gold. Point is, most physical bullion that investors believe is there, really isn't. It's just a paper promise and another exercise in fractional banking. Here's an excerpt: "Everyone knows the concept behind a “fractional” banking system, right? You have $1 in deposits and you lend out $10. The Romans invented the concept and it is widely understood to have been one of the ingredients that led to Rome’s demise.

As per the electrifying CFTC hearings on March 26, and a fact that GATA has long understood, the Big Banks which deal in gold and silver, also known as “Bullion Banks,” apply and utilize the fractional banking system to bullion dealings.

In 2007 Morgan Stanley settled a class-action lawsuit in which Morgan Stanley was selling silver to customers and charging them for storage. It turned out that Morgan Stanley was selling and storing silver that didn’t exist.  One of MS’s defense arguments was that it was common industry practice to sell and store metal that didn’t exist. And as long as the customer buys and sells thru MS without asking for the metal to be delivered, MS can get away with it because the round-trip transaction is cash in/cash out. The scheme crumbled when some investors asked for serial numbers and weights. Details are here, if you are interested: LINK" Read the full story here: Commodities Reporter

Time to cash in your ETF shares and contact me for real bullion!