The Latest Gold Fraud Bombshell: Canada's Only Bullion Bank Gold Vault Is Practically Empty

[Joanne98]

Continuing on the trail of exposing what is rapidly becoming one of the largest frauds in commodity markets history is the most recent interview by Eric King with GATA's Adrian Douglas, Harvey Orgen (who recently testified before the CFTC hearing) and his son, Lenny, in which the two discuss their visit to the only bullion bank vault in Canada, that of ScotiaMocatta, located at 40 King Street West in Toronto, and find the vault is practically empty. This is a relevant segue to a class action lawsuit filed against Morgan Stanley, which was settled out of court, in which it was alleged that Morgan Stanley told clients it was selling them precious metals that they would own in full and that the company would store, yet even despite charging storage fees was not in actual possession of the bullion. It appears that this kind of lack of physical holdings by all who claim to have gold in storage, is pervasive as the actual gold globally is held primarily in paper or electronic form. Lenny Organ who was the person to enter the vault of ScotiaMocatta, says "What shocked me was how little gold and silver they actually had." Lenny describes exactly how much (or little as the case may be) silver was available - roughly 60,000 ounces. As for gold - 210 400 oz bars, 4,000 maples, 500 eagles, 10 kilo bars, 10 one kilogram pieces of gold nugget form, which Adrian Douglas calculates as being $100 million worth, which is just one tenth of what the Royal Mint of Canada sold in 2008, or over $1 billion worth of gold. As Orgen concludes: "The game ends when the people who own all these paper obligations say enough and take physical delivery, and that's when the mess will occur."

http://www.zerohedge.com/article/latest-gold-fraud-bombshell-canadas-only-bullion-bank-gold-vault-practically-empty

Rut Ro!

[ZeitgeistObserver]

1. Canada sold off a lot of gold some years ago,

and turned it into foreign reserves like the Euro and so on. I presume this changeover has been going on ever since, just not making headlines.

[Hell Hath No Fury]

2. I always wondered about that --

I saw some fine print in one of the "buy gold!" ads where you never actually got possession of the gold, it was instead "held" for you by the company doing the selling.

That didn't make a lick of sense to me. :shrug:

Sounds like nothin' but another ponzi scheme.

[ZeitgeistObserver]

3. You can buy actual gold, but storage of bars

is a problem, so people usually buy ounces or coins. Gold isn't much use anymore, anyway, except for jewelery.

[Art_from_Ark]

8. 300,000 cell phones contain 10 kg of recoverable gold

That's for starters. Gold is used in other electronic and industrial uses because it has some extremely desirable properties, including high electrical conductivity, excellent resistance to corrosion, and superb malleability. It has also been found to enhance the effects of palladium and platinum catalytic converters in cleaning exhaust gases. The claim that is gold "isn't much use anymore, anyway, except for jewelry" is just plain nonsense.

[enough]

4. And if you do buy physical gold, how do you know it's real?

[ZeitgeistObserver]

5. Well it's stamped and marked, and you can

test it if you're that suspicious.

[cutlassmama]

6. Isn't this also the case for Fort Knox? Sounds like amother white

collar ponzi scheme that no one will be held accountable for.

[roamer65]

9. Good question. Just how much gold IS left in Fort Knox?

Rumor has it that it is mainly gold from the melting of pre-1933 gold coins (melted in 1937), and very little of it is now left.

[Art_from_Ark]

11. I have read that there hasn't been an official audit of Ft. Knox since

the Eisenhower administration. I wouldn't be surprised if a lot of that gold ended up as part of the "American Gold Eagle" (and its predecessor, "American Arts") bullion program.

Heck, for that matter, it could have been used to pay foreign debts until Nixon ended the practice in 1971.

[Art_from_Ark]

12. For that matter, some of the Ft. Knox gold could have been used

to make the so-called "Aramco disks"

"For a time the Saudis accepted payment in United States currency, but by 1945 they were insisting that the payments in gold be resumed. Aramco sought help from the United States Government. Faced with the prospect of either a cutoff of substantial amounts of Middle Eastern oil or a huge increase in the price of Saudi crude, the Government minted 91,120 large gold disks adorned with the American eagle and the words “U.S. Mint — Philadelphia.”"

http://www.coinlink.com/News/gold-silver-bullion/unusual-items-us-mint-gold-disks-made-for-oil-payments-to-saudi-arabia/

[CHIMO]

7. Just For Reference Purposes

Precious Metals


Scotiabank is Canada's Gold Bank, and one of the world's largest dealers in precious metals, with over three centuries of expertise. For gifts or for investments, it's convenient, easy to purchase and affordable.

Scotiabank provides specialized services and various precious metals investment products through ScotiaMocatta – the precious metals division of The Bank of Nova Scotia.

For more information on product availability and how to buy and sell precious metals, please visit the ScotiaMocatta website.

http://scotiabank.com/cda/content/0,1608,CID6045_LIDen,00.html

And by the way. The Bank of Canada is the backer of the Canadian currency.

[roamer65]

10. Bank of Nova Scotia (Scotiabank) had large gold and silver holdings under WTC4 on 9/11.

Very quietly those holdings were removed via armored cars in November 2001.

[dixiegrrrrl]

13. More intereseting information...a lot of gold has been sold.

"Gordon Brown has been ordered to release information before the general election about his controversial decision to sell Britain's gold reserves.
The decision to sell the gold – taken by Mr Brown when he was Chancellor – is regarded as one of the Treasury's worst financial mistakes and has cost taxpayers almost £7 billion.
Between 1999 and 2002, Mr Brown ordered the sale of almost 400 tons of the gold reserves when the price was at a 20-year low. Since then, the price has more than quadrupled, meaning the decision cost taxpayers an estimated £7 billion, according to Mike Warburton of the accountants Grant Thornton."
http://www.telegraph.co.uk/finance/personalfinance/investing/gold/7511589/Explain-why-you-sold-Britains-gold-Gordon-Brown-told.html

Plus:
AFP) – Feb 17, 2010

WASHINGTON — The International Monetary Fund said Wednesday it was ready to sell 191.3 tonnes of gold on the market in a bid to reduce its dependence on lending revenue.

At Wednesday's market price of about 1,120 dollars an ounce, the gold to be sold would be worth nearly 6.9 billion dollars.
A combined 212 tonnes was sold during that first phase -- more than half the approved total -- snapped up by the central banks of India, Mauritius and Sri Lanka.

India, the first customer, bought 200 tonnes, followed by Mauritius (two tonnes) and Sri Lanka (10 tonnes).

http://www.google.com/hostednews/afp/article/ALeqM5hd-kESCr6kVFWIdGXsouA5p0UBYA

[Art_from_Ark]

14. Brown sold most of that British gold at a low

Maybe he thought that gold was just a "fiat currency" and wanted to get out before its value reached zero. LOL