Alchemists’ Dream is Realized in Modern Finance

They don’t even need lead.  They can convert paper to gold:

“Beware: “Allocated” Gold May Not Really Be There

“In 2007, Morgan Stanley paid out $4.4 million to settle a class-action lawsuit by its clients after Morgan Stanley charged them to buy and “store” precious metals for them,  but neither bought or stored the metals.  (Similarly, a 2011 class-action lawsuit filed in federal court in New York accused UBS Financial Services of misleading silver investors and charging them storage fees for metal that was never actually purchased,  segregated, and stored for them.)

“Avery Goodman points out that Morgan Stanley has once again just launched a similar scam, offering “allocated” metals, but gaming the definition so that the holdings are not really allocated.

“On May 21st, Matterhorn Asset Management’s Egon von Greyerz alleged that Swiss banks are trading physical gold bullion which is being held in special “allocated” accounts for its customers:

We are stressing to investors to take their gold out of the banking system, not only because there are runs on banks that will continue, but the risk of being in the banking system is major. So you should take the additional step of not just owning physical gold, but also owning it outside of the banking system. …

http://www.washingtonsblog.com/2012/07/beware-allocated-gold-may-not-really-be-there.html

The same thing is happening with silver, and in the commodities exchanges as well.  That’s why obama has added the exchanges to the list of “too big to fail” institutions.

 

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