Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

When Buying Gold Seems Suspicious


The Physical gold market hasn't got out of 1st gear as of yet, IMO, and when it gets going people will understand what a "gold rush" really is.


Check out this article, "Gold bars just a whisker from crooks' grasp" from the Sydney Morning Herald.

It seems the underworld has realized that physical gold is the ultimate money and store of wealth. Untraceable and untaxable gold bars? Who'd have thought it (a Minyan maybe)? Interestingly, this story has relevence to the "physical" gold market, how small it is and how few people have ever taken delivery of "their" gold. Why would a legitimate $14 million transaction be suspicious to the Perth Mint? There's plenty of people around that have got that sort of wedge to legitimately invest in Gold.

In Perth, the Mint had concerns, which it refuses to reveal, except that they are related to the complicated "protocols" involved in buying bullion. "You don't get $14 million bullion orders every day," Mr Moffatt said. "We've been doing this for a long time and we know when something doesn't smell right."

What doesn't smell right about receiving cleared cash from a person who wants to own physical gold? It certainly wasn't the size of the amount of cash – rather it was the actual delivery of the gold. "Who takes delivery of gold these days?" they would have asked themselves. "That size of deal is usually in paper gold certificates or held in unallocated metal accounts stored here. Hmmm." The anti-money laundering policy would have been put into effect. Investigation would begin and the rest is history. The real alarm was the physical delivery – nothing else, just someone wanting a pissy little dollar amount of bullion delivered. That tells us heaps. Think about it.

It seems that if you want to buy a fair chunk of Bullion from the Perth Mint, you had better be prepared to have your paper money investigated to "their" satisfaction, before delivery. Buy a property, a nice boat, paper gold, international shares or a dozen well bred racehorses with next to no questions asked. Buy gold and see what happens. I guess the old "I won it at the races" wouldn't fly in Perth. Hmmmm.

I've said many times that there are more paper claims over gold than there is real metal to deliver and that people should take delivery of their "paper" metal, if they want to really "own" gold. If you just want to punt the paper price, stick to paper but you'd bloody well want to know what's happening in the physical markets. The Physical gold market hasn't got out of 1st gear as of yet, IMO, and when it gets going people will understand what a "gold rush" really is. It's in all the history books and ya only have to go back to the last 5,000 odd years to see why we're headed where we're headed in gold and silver. Opinion only.

Local News

Just 4 more sleeps till The Lisa and I get on the plane. We're in NY for a week and a bit including a quick visit to a little place called Lebanon in Pennsylvania (seriously) and finishing up in Vail for the MiM3 gig. The fly-rod and gear is safely packed and our baseball gloves recently oiled. The liver had a very testing hit-out over my recent 41st birthday weekend. The gold and silver bars, coins and jewelry are always ready to go, anywhere, anytime. I've got part of a week in at MVHQ to get content sorted for the conference. It looks like everything is prepared for optimal performance in Vail. I've just gotta steer clear of Minyan Sal and his red wine……well, at least for the first night.


< Previous
  • 1
Next >
Position in gold, silver

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos