Is money burning holes in your pockets? Do you want to be rid of it? Do you like the idea of giving the perfect gift to your friendly neighborhood bankster?
If so, CME, Inc. has just the deal for you. Their precious metals futures exchange, also known as “COMEX”, will allow you put your money at risk, with no return on investment, beginning on January 9, 2017. It is on that date that it will unveil its new so-called “gold and silver spot” contract.
Careful reading of the minutae of the contract announcement reveals the truth and it isn’t pretty. Unfortunately, most people won’t read the contract and many who do read won’t understand. That’s why entities like CME, Inc. get away with so much. That is also why I am going to make an effort to educate people to this scam. First, let’s look at how cleverly COMEX discloses the truth, even as it defrauds its customers:
By using the word “spot”, the company implies that buyers will be purchasing physical gold. Of course, that’s what they want you to believe and what most people who buy it will believe. Unfortunately, it is not true. Each so-called “spot” contract confers nothing more than a right to theoretical gold or silver. The metal, itself will remain as imaginary as it always has. The key to it all is that unallocated gold and silver holders, by definition, OWN NO IDENTIFIABLE BAR OF GOLD OR SILVER. As a result, the use of the words “physical” and “delivery” is nothing more than a fraud. No one can “physically deliver” what doesn’t exist.
The supposed “delivery” will be done by a notation on an electronic statement. The statement will say you “own” the right to “x” number of ounces of gold or silver. If you ever do demand a real bar, the dealer will have the option of settling with you in cash. If the dealer has no gold and has no cash, you’ll be an unsecured creditor, with a low priority claim, in bankruptcy court. You won’t get paid one red cent.
Let’s say you’re an unallocated gold holder who has read this article. You’ve decided that imaginary gold is not good enough. You call their bluff. You demand real physical delivery. The dealer must then take metal from its general stock, if it has any. If too many people ask for real gold or silver, the whole scam collapses and you’re out of luck. One big problem is that the banks that run London’s unallocated gold market, which is where these new COMEX contracts will be based, are generally believed to hold only one ounce of real metal for every 100 that they supposedly “sell”.
CME, Inc. will argue that the exchange “guarantees” the trade, but the claim is basically meaningless. If one dealer goes belly-up, it is possible that COMEX will reimburse you. Or, it is also possible that they’ll find an excuse not to reimburse you, such as by saying that the dealer didn’t completely follow their rules. But, assuming they do reimburse you, they will almost certainly do it with cash, not with metal. If one dealer has collapsed, since all the dealers are deeply intermeshed with one another, it is probable that the failure will bring down a lot of them. With a run on the bank like that, the exchange itself will collapse.
To adding insult to injury, dealers often attempt to charge up to a whopping 1% per year to store so-called unallocated gold or silver. That is in spite of the fact that they are “storing” nothing but vault air! The bottom line is this… DO NOT TOUCH THE UNALLOCATED PRECIOUS METAL SCAM WITH A TEN FOOT POLE. The new COMEX contract is a rehash of the same old scam. If you are already involved in unallocated gold or silver, get out while you still can. If you wait long enough, you may end up with nothing.
Remember something critical. Gold is money. Unallocated gold is not gold. It does not exist. It is a bank issued bond similar to those that were sold in the days of the gold standard. It carries the same risk as a bank gold bond. Then, as now, the bank could fail, and often did. Therefore, in return for putting your capital at risk, interest should be paid. If it isn’t, you’re a fool to put your money in. Back in gold standard days, nobody in their right mind was fool enough to hand gold to a bank without being paid interest. No one should do it now either. Beyond that, only a blooming idiot would ever pay a storage fee on his own money, when the bank is using it as working capital, selling it or lending it out as they do with so-called “unallocated” gold/silver.
How can you buy gold and silver while avoiding scams like this? Middle class people should buy coins and small bars at retail gold dealers. People wealthy enough to buy 100+ ounces of gold at one time should REJECT the solicitations of any broker who tries to get them to agree to an “unallocated” scheme. That includes the new one that COMEX will be promoting, starting next month. If your broker keeps pushing the idea, fire him, and find somebody else to help you with your money.
– Josh Pullman –
The Synod is a conspiracy of 8 large international banks who seek to control gold, stock, bond and commodity markets all over the world. Jack Severs runs for his life when he learns too much, as the most sophisticated surveillance system ever built is deployed to track him down. As the ever-tightening noose closes, he struggles to uncover evidence to save himself and his world from collapsing! An exciting, fictional, fun and educational thriller about the banking cartel. Learn about the methods used to manage the price of gold and every other market on the planet, and how this affects business, politics and daily life in both the fictional and real worlds.
A perfect gift for the holidays!