"Lethal For Bullion Banks" - The Looming $600 Trillion Derivatives Crisis

Source: https://www.zerohedge.com/markets/lethal-bullion-banks-looming-600-trillion-derivatives-crisis
Published: Apr 18, 2020
Author: Tyler Durden
Post Date: 2020-04-18 12:44:40 by Horse
Views: 1794

...an unimaginable sum. Central banks are on course to destroy their currencies through unlimited monetary expansion, lethal for bullion banks with fractionally reserved unallocated gold accounts...

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#1: NeoconsNailed    To: Horse (#0)

Bullion banks???

NeoconsNailed posted on 2020-04-18 12:52:54   Reply   Private Reply

#2: Horse    To: NeoconsNailed (#1)

In Europe there are banks where you can deposit one ton of gold and they hold it in safe keeping for a fee. They are not supposed to loan out your gold but many do. Not good with the gold price going up rapidly.

Horse posted on 2020-04-18 13:26:32   Reply   Private Reply

#3: Pinguinite    To: Horse (#2)

They don't physically loan the gold though. They essentially use it as collateral in some form to let other parties claim they have ownership for a short term. Isn't that right?

Pinguinite posted on 2020-04-18 14:19:35   Reply   Private Reply

#4: NeoconsNailed    To: Horse (#2)

I don't know why we can't have a little integrity somewhere.

NeoconsNailed posted on 2020-04-18 15:01:13   Reply   Private Reply

#5: hondo68    To: Pinguinite, all of the metal is NOT there (#3)

They don't physically loan the gold though

Recently they changed COMEX reserve rules to accept 200 oz bars in addition to the 400 oz ones which is how all of their PM's had to be stored, they insisted.

It's a very difficult process to change paper gold & silver into the real thing, and nowadays holders have been demanding delivery of the real stuff, which they don't actually have anymore, it's long gone. 200 oz bars are a heck of a lot easier to find, so they're now buying those up to cover their a$$es.

In summary.... If you don't hold it, you don't own it!

hondo68 posted on 2020-04-18 17:25:06   Reply   Private Reply