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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:

On Sunday January 8, 2017, for trade date Monday, January 9, trading will commence in COMEX Gold and Silver Spot Futures. On each COMEX business day, the Exchange will list for trading one Gold Spot Futures (GSP) contract, and one Silver Spot Futures (SSP) contract. The contract will trade up to 5:00 pm New York time for that business day. Open positions at that 5:00 pm closing time will result in physical delivery of unallocated metal – gold or silver – on the spot value date.

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.

Buy Synod“It moves fast, kind of like Robert Ludlum’s “Jason Bourne” trilogy…”

–  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!

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  1. Banks are robbers! Take any ‘money’ you feel you need to keep in a financial account and put it into a Credit Union instead…
    What if everyone didn’t do business with a bank, no accounts or loans? wikipedia
    In part;
    Tension has always existed between member-owned cooperative credit unions and for-profit banks in the United States. When credit unions were first organizing in the US in the early 20th century, the banking industry was opposed, remaining so ever since.
    The FDIC does not provide deposit insurance for credit unions, which are insured by the National Credit Union Administration (NCUA).
    The National Credit Union Administration (NCUA) is the independent federal agency created by the U.S. Congress to regulate, charter, and supervise federal credit unions
    A credit union is a member-owned financial cooperative, democratically controlled by its members, and operated for the purpose of promoting thrift, providing credit at competitive rates, and providing other financial services to its members.[1][2][3]….
    Not-for-profit status
    In the credit union context, “not-for-profit” should not be confused with “non-profit” charities or similar organizations.[20] Credit unions are “not-for-profit” because they operate to serve their members rather than to maximize profits.[21][22][23]

    1. Not all banks are “robbers”. There is a difference between a banker and a bankster. Most mid-sized and smaller banks are not involved in worldwide speculative activity or market manipulation. Credit unions are great, but many banks are foundation stones for their communities. They earn their money by doing what a bank is supposed to do. They take deposits and make loans, helping people build homes, businesses and jobs.

  2. Avery, although everything you say is absolutely correct, you did not address the overriding issue: The purpose of every trading is to increase our net worth position, that is, to increase the number of Dollars we can spend. The majority of people buying gold are not interested in that metal as such. They view gold only as a market instrument which can be traded to increase the number of Dollars in one’s account.

    That is a rational position if one assumes that the confidence in the Dollar will continue for the foreseeable future. Rumors about the collapse of the Dollar go back to the early 1970’s when Nixon temporarily closed the gold window. The Dollar has not collapsed yet and it is by no means clear that it will collapse anytime soon. So if one believes that the Dollar will continue to be the most important reserve currency, it does make sense to trade fake Comex contracts.

    1. I don’t think the dollar will necessarily collapse, although it has been and will continue to depreciate at a substantial rate over time, as that is the Federal Reserve and US Treasury’s plan (ie: to create inflation). I also believe that the rate of inflation will eventually rise substantially, and run out of their control eventually. The dollar could outright collapse, however, in the unlikely event that China manages to develop a new missile that takes out one or two of our aircraft carriers in a big unexpected skirmish in the S. China Sea.

      Not many people, outside those with a lot of influence at the US Treasury, will “increase” their net worth position by trading in and out of gold. You’ll might get lucky for a while, but in the longer run, it is a rigged system and the casino always wins in the end. Physical gold is a long term investment, not a trade. If you want to “trade” gold, there are more honest avenues than a fake “spot” contract that requires you to put down the entire purchase price of something they’ll never buy for you. It is not smart to hand over money, get nothing for it, and then pay “storage fees” on something that doesn’t exist. You can buy a mining stock or you can even buy a COMEX futures contract.

      Granted, futures contracts are the poster children for fake gold. In my opinion, they are also a con game whether you are “trading” gold, silver, pork bellies, interest rates or anything else. At least, however, everyone who trades them knows about the con, so they can be said to have agreed to it. Unlike fake “physical” unallocated gold contracts, futures only require a performance bond’s worth of your money and you don’t pay any storage charges.

      At any rate, a systemic collapse of the US dollar is not needed for someone to lose an entire investment in unallocated gold. Only a broker needs to collapse. The collapse of one large dealer would also bring down other dealers and make the COMEX “guaranty” worthless. Even if it is just your dealer, COMEX will pay in cash at an arbitrary valuation date and time. Between the time the fake gold price is set, and the time you get your cash, the price of gold will rise a lot, given the circumstances. It will be impossible to secure real gold in exchange for the imaginary stuff, regardless of the so-called exchange “guaranty”.

  3. Avery and group. ‘Fake’ gold already exists and has for some time now. They are called ETF’s, specifically the symbol, GLD. My understanding is that these were invented and engineered to keep investors from investing in physical. And who is behind GLD? Goldman! Humm…..

    Here’s some additional food for thought.

    •”That day the U.S. announced that the dollar would be devalued by 10 percent. By switching the yen to a floating exchange rate, the Japanese currency appreciated, and a sufficient realignment in exchange rates was realized. Joint intervention in gold sales to prevent a steep rise in the price of gold, however, was not undertaken. That was a mistake.”
    — Paul Volcker, “Nikkei Weekly” Nov. 15, 2004 (original incident on February 12, 1973)

    And as far as the value of the dollar?

    1. Theoretically, GLD contains allocated gold. Whether they have all the gold they claim, however, is the question that gnaws on the minds of many. Also, since normal investors cannot withdraw it, even if it has all the allocated gold claimed, it is still far from a good quality investment in gold. PHYS, in contrast, is not only allocated, but, if you want to, you can withdraw the percentage of gold represented by your shares, subject to a few minor caveats. A much better deal if you want to buy an ETF-like product.

  4. Avery: Since the manipulation of gold and silver has come to light in a big way recently, why not ALERT the powers that be that such could EASILY happen again on January 9th, 2017?? Can’t a GROUP of you guys call “BULLSHIT” on the scam which is about to happen?? SOMEONE must be interested, right–ESPECIALLY with all the outright manipulation which has gone on up till now??

    Bob Peiser, Jr.
    Sarasota, FL

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