It’s happened again.  Just two weeks ago King World News reported that a German bank refused to return a client’s 1/2 tonne of gold.  Here we are just two weeks later and London whistleblower Andrew Maguire just told KWN that now a Swiss Bank just refused to return a client’s gold the bank was supposedly storing for the client.

Swiss Bank Just Refused To Return Client’s Nearly 1/2 Tonne Of Gold
July 20 (King World News) – Andrew Maguire:  As we discussed in our last KWN interview, over the last few months we have been observing Swiss and German banks enforcing cash and gold withdrawal limits for clients. Currently, Swiss banks are capping client cash withdrawals to between EUR100K to EUR200K. Although the onus is placed upon individual banks to decide cash withdrawal limits on their clients, we have recently seen these limits enforced more strictly and the banks are using this as an excuse for not delivering client-held gold...

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Andrew Maguire continues:  “In that last KWN interview we drew particular attention to a German bank refusing to deliver 500 kilos of a client’s physically allocated gold. In this case, the 500 kilos only represented 10 percent of the client’s overall bank holdings. The condition laid down was that the client would first have to deposit an equal value of stocks, bonds, or cash to release the gold. Such a condition strongly suggested that the gold was in fact held in unallocated form and needed to be physically purchased.

It has to be borne in mind that ever since the hard lessons the Germans endured before and after World War II, it became commonplace for German employees to elect to have money deducted from their wages every month to invest in physical gold accounts. This continues today. What had our attention was that it was a German bank that refused to deliver, and we view this as a big deal as it threatens to potentially destroy trust from millions of clients holding gold in German banks. We feel it is our duty to draw attention to this growing lack of trust in the banking system. 

Since drawing attention on KWN to this specific situation, we received many concerned phone calls where I advised people to do exactly what we suggested they do in our KWN interview, to test the water and to make a physical delivery request from their banks. As a result, we are now hearing of a slew of refusals to physically deliver anything of size.

A Swiss Foundation Cannot Get Their Gold Out Of Their Swiss Bank
So, we thought we would test the water. This week, a Swiss foundation sought delivery of their 420 kilos of gold (which is nearly 1/2 tonne of gold). They were refused. Seeking assistance, the bank was approached by a well-known vaulting partner with an offer to purchase the kilobars directly from the bank at a commercially acceptable premium to spot. This offer should have been immediately accepted as it would have been profitable for the bank. However, this offer was also refused, and the foundation was told to settle their gold account for cash.  Clearly the foundation’s gold was not held by the bank in allocated form.

Then we looked at the ‘standard’ Swiss allocated documentation provided to physical clients. To our astonishment these agreements no longer list any bar numbers, just a statement summarizing the number of kilobars held by the bank on behalf of the client. However, the storage costs are charged at the higher allocated rate. 

When questioned for bar numbers, the bank representative stated:

“Ich komme nicht drauf wie man einen Auszug einer einzelnen Position erhält. Genügt Ihnen der gesamte letztmonatigen Depotauszug (siehe Anhang)?”

Which translated says:

I cannot figure out how to get an excerpt from a single position. Are you satisfied with the entire last month’s deposit statement?

Eric, we are talking about a Swiss bank not having the ability to track individual bar numbers (this is preposterous). This should have every Swiss gold depositor seeking physical delivery.

It is clear that Swiss/European allocated bullion holdings are at the very least pooled under the care of the bank.  Furthermore, it is now absolutely clear that no satisfactory audit procedures exist to ensure clients’ physical bars are segregated.  Cash settlement and refusals to deliver anything of size are now par for the course and raise a major red flag that client holdings are fractionally held. 

These refusals to deliver bullion are now…To continue listening to the powerful audio interview with Andrew Maguire CLICK HERE OR ON THE IMAGE BELOW.

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