Increasing private repatriation of gold is being met with delays.

I'm seeing a rapidly increasing number of reports in the news sources that I follow which indicate that bullion banks might not have the gold on hand that they say they do.   This of course comes as no shock to me.  If you look at what it costs to build, staff, and run a secure facility for the storage of gold and then you look at the cost of storing your gold there, something doesn't add up.  Gold vaults need, well, vaults!  Those don't come cheap.  They also need computers and security systems and people to do paperwork and to sell the services, etc.  If the true cost of all this was put to those wanting to store their gold in the facility then I'm sure it would not be cost effective.  It would cost 5-10% of the value of the gold per annum.  Anyone paying that would have no value left after only a few years of "safe" storage.  In other words, it is an extreme luxury to have this. 

Yet many bullion banks do exist and many people store their gold in them.  The only way this can possibly work is if the bullion banks are using the gold on account to gamble with.  The gambling can take the form of loaning the gold out to other businesses in order to generate a revenue stream that pays the cost of the storage and then some.   With Bernanke's zero interest rate manipulations virtually guaranteeing prosperity to gamblers, gamblers will go to any length to find money to gamble with.  So they go to the bullion bank, borrow some gold and then sell it on the open market.  They then use the funds in order to invest in paper assets using high leverage.   The game is to pile debt upon debt, leverage upon leverage.  If you don't do it someone else will.  This is the recipe for a mania. 

It all seems good until there are no more good bets to make with the borrowed money.  That's when the bad bets are made because the gambler is used to the cash flow from gambling.  And so lots of bad "hail Mary" bets are made, many of which fail to pay off.  At some point the people who made deposits in the bullion bank begin to get worried about the safety of their gold and so they begin to ask to see it and/or ask for it to be returned from them.  But the bullion bank no longer has the gold.  It has been loaned out to gamblers who sold it off and then lost the money they used to gamble with.  Besides, this has been happening for years even back to when gold was $800/ozt. or less and so to buy the gold back and pay off the debt to the bullion bank is now impossible.  Too much of the fiat currency that the gold was traded for has been lost.

Thus begins the stalling and the excuses.  First it's "no you can't look at it for security reasons".  Then it's "well, the Queen can have a peek but she doesn't know $hit from shinola and so gold colored bars can be set up for her to view.  Then it's, "well you can only withdraw so much gold per unit time" using excuses like "we need to do this in order to stop money laundering operations".  Later on it's "well look, you can have dollars back but we will no longer settle accounts in actual metal like we said we would".   Folks, we are already at this point.  Swiss banks are making excuses about why they are delaying the return of gold to those who are asking.  And some experts are now predicting that the COMEX will soon begin forcing traders to settle in cash.

This is zero different from the US default on gold convertibility of the dollar except that it will involve businesses instead of the government.  Such an event would have the effect of collapsing confidence in the con game across the board and would likely wake the American people up enough to demand a full and impartial 3rd party accounting of the gold held in trust for the American people by the US government.  There is good evidence that the US is exporting more gold than we are producing.  I believe the reason for this is that the US is sending gold to those areas of the world whose leveraged gold Ponzis are collapsing: The UK, Switzerland, and Hong Kong.  This is where all of the gold banks are located, this is where all of the highly leveraged gold loaning has been done.  

If these guys collapse it could set off a chain reaction that would collapse US run Ponzis.  This is no different than the US sending dollars to everyone and their brother during the collapse of 2008.  The Federal Reserve is trying to play "shock absorber" for the global economy.  At some point they will fail.  They will simply run out of resources to send into the fight and they will have to stop.  When that happens, the economic tide will go out in a historic way and we will really know who has been skinny dipping all this time.  When that happens I hope the US has the good sense to fill the jails with the financial "robber barons" that have run our economy into the dirt.  It is economic terrorism on a massive scale and all of it has been enabled by the con game of fiat currency and fractional reserve banking.

If you don't own gold in your physical possession, you don't own it at all.  Physical possession is 9/10ths of the law in every collapse in history.  Once things collapse and so many people are owed there is no way everyone can collect.   It is part and parcel of the Global Debt Ponzi.

And now I return you to your evening while I continue buying parts for my AR-15.