Liquidation Of Customer Stored Gold And Silver Bullion From MF Global

TMO ^ | 12-17-2011 | Jesse

[Praxeologue]

All customers ought to have known that Comex exchange rules make electronic warehouse receipts unallocated, meaning that there is no direct ownership and that the customer is merely an unsecured creditor in a bankruptcy of the exchange member, in this case MF Global. MF Global at all times had full use of the clients balance for their own purposes. No doubt Corzine et al was relying upon this and customer ignorance about it. The complaints in the Forbes article, which included lawyers who should have, or perhaps did, know better, are an example. Perhaps it is all grandstanding.

I don't recommend holding gold in your basement. Gold should be held as ALLOCATED 400 ounce London good delivery bars, worth about $640,000 each with one of the seven members of the LBMA who are dealers, assayers and storage houses. These are five major banks plus Brinks and Via Mat. Storage and insurance on this basis is cheaper, totaling around 0.12% per year, plus these bars are the most liquid/tradeable form. My preference is HSBC.

[SatinDoll]

So how does corrupting the commodities markets cause the rest of the markets to slither into an abyss?

[SatinDoll]

Kennie, that’s no fun!

24K coins, whatever the size, can be placed in 18k bezels and attached to bracelets, cufflinks, necklaces, buttons, you name it - but I wouldn’t wear them out and about in certain venues lest one be mugged.

I’m particularly fond of the small gold coins minted by the Isle of Mann, the ones with the different cat breeds on them.

[cynwoody]

MF Global calls into question the entire capitalist system. At least, as far as it goes beyond two-party transactions, i.e., you buy shares in X.

If your broker can pledge and lose your assets, and you can't recover, then the brokerage system is broken to the point of unusability.

Bernie needs a room mate. Governor Corzine should fill the bill. But then, we'll have to let them both out, since a broken capitalism can't afford prison screws! (not to mention their pensions.)

[djf]

A lot of production planning estimates are based on perceived or actual future availability.

For instance might a farmer plow a lot of land to plant if he is unsure of how much fertilizer will cost him?

This type of thinking practice also gets magnified by JIT methods.

[Praxeologue]

I’m particularly fond of the small gold coins minted by the Isle of Mann, the ones with the different cat breeds on them.

And diamonds are a girl's best friend.

[Smokin' Joe]

Finally, the question that should haunt us all is, "then what?" No one seems to want to answer that one, much less think about it. For it requires you to think the unthinkable, doesn't it?

Not that I am encouraging any illegal act or retaliation, but this sort of thing will continue until some of the thieves end up like the coyote hanging on a fence. It acts as a deterrent to those who might otherwise consider unacceptable acts.

[Lockbar]

LOL, investing in “gold stocks” or other paper based precious metal schemes. If I were to legally purchase 10 Smith and Wesson revolvers, but keep them locked up in the safe at the gun store “for safe keeping”, does anybody think they will be there for me to retrieve if the SHTF??? Gold is only Gold if you hold it in your hands.

[runninglips]

What? Won’t the govt bail out people that lost a high percentage of their investments.....roflmfao.

[bigoil]

‘There came into Egypt a Pharaoh who did not know.’
—Wall Street

Everything old is new again and there is nothing new under the sun. Read Silver Bulls by Paul Sarnoff and some of the musings of Sherman Skolnick (RIP) of Chicago.

Skolnick was a ‘Judge Buster’ in Chicago. When I say Judge Buster, I’m not talking about someone who takes down some night court judge who fixes parking tickets. Skolnick would take down crooked Federal Appellate Judges in Chicago in the early 1970’s.

He also wrote the definitive account of the United Airlines crash which killed the wife of E. Howard Hunt.

[HiTech RedNeck]

Isn’t this the same kind of risk as if you held corn futures and there was a severe drought making it impossible for everybody to get all the corn that was “futured”?

Gold dealers can go bankrupt too.

[Sun]

“Gold dealers can go bankrupt too.”

Buy more food and other necessities.

[Mouton]

I guess it is just a coincidence that most of these financial clowns are stong proponents of gun control.

[EBH]

They did raid them during the 1930s. Several things you are not supposed to store in safety deposit boxes if you read the fine print when you opened the box. Also keep in mind if a bank holiday is declared you will not have access to the box either.

[EBH]

Based on this information from early this year....very good.

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

[ronnie raygun]

“Our anscestors would have been shooting by now”

[ken5050]

FYI..hadn't seen this before..a new take...

welcome your comments..

[The Working Man]

‘Let them eat warehouse receipts.’

For many this would have been unthinkable only a few months ago. They had been cautioned and warned repeatedly, but chose to trust the financial system. And now they are suffering loss and anxiety, frozen assets, and the misappropriation of their wealth.

---

I am sitting here shaking my head sadly also I am so grateful that I had no personal dealings with this company.

I’ve said it before here on Free Republic: If you can’t reach out and put your fingers on it, you don’t really control it. That goes for Gold, Silver or anything else.

I learned that lesson real well in the military, oh the stories I could tell about my units ‘assigned assets’ that disappeared just as we needed them because they weren’t under our direct control.

[FreedomPoster]

>>what is now painfully clear is that the CFTC and CME regulated futures system is defaulting on its obligations.

There is an Ann Barnhardt rant on exactly this theme from a week or more ago. She goes into significant detail on the whole issue, and is quite irate about the whole thing. Watching this happen is what made her shut down her business, as she was unwilling to tell customers to put money into a system with no integrity.

Here, I found it:
Market Has Been Destroyed by the MF Global Collapse (podcast interview w/ Ann Barnhardt)
http://www.freerepublic.com/focus/f-news/2815367/posts

And there is now:
Transcript for Ann Barnhardt Interview
http://www.freerepublic.com/focus/f-news/2818867/posts

[FreedomPoster]

Jives with the Ann Barnhardt rant I posted above. You can read the transcript, but reading it won't do it justice. You really should listen to it, as she is just incensed by the whole betrayal of trust and it very much comes through in the audio.

On the theme of your comment, we have this from that interview:

"But, yeah, to all the people out there listening—you are going to have to get away from paper and get back into physical commodities, the real deal. Anything that is on paper anything that involves a promise or a commitment is no longer valid because as we said there isn’t a rule of law anymore. People can steal from you. Your money can be confiscated. And think how easy now it is to confiscate people’s wealth. Most of our wealth in this society exists as zeroes and ones on a computer server. It takes no effort whatsoever to steal zeros and ones on a computer server. So what I have been telling people is you need to get into physical commodities. And the rule of thumb is if you can stand in front of it with an assault rifle and physically protect it, then it's real—it's a real commodity."

Emphasis added.