Report: Run on Physical Metal at Brinks

The price of gold and silver has seen a massive decline as of late, prompting one analyst to suggest that there is no compelling fundamental reason to own precious metals and the only thing investors can do now is “hope and panic, in that order.”

But while current prices and technical charts may leave some with the feeling that gold’s bull run is over and the bubble has popped, others are scooping up as much yellow and silver metal as they can find, and in some cases they’re doing it by the tens of thousands of ounces.

According to recent data from the Chicago Mercantile Exchange, private investors are rapidly exchanging their paper holdings and turning them into deliverable physical assets, an indication that the purported ‘free market’ price for gold on global exchanges is grossly undervalued.

Brinks is now being depleted.  

They have gone from 447,199 on July 3rd to 134,525 on July 9th which is a drop of 312,674 oz.

If this is correct, then this is a decline of 70 percent in the gold held in private accounts at Brinks in just one week.

If this is data is correct, it would not be too much of a stretch to say that this has the appearance of ‘a run on the bank.’

Economic researcher F. William Engdahl today tells the German financial journalist Lars Schall, writing for Matterhorn Asset Management’s Gold Switzerland Internet site, that the smashing of the gold price in April involved so much paper gold that it could only have been the work of the Federal Reserve.

Engdahl adds that central banks may not have possession of the gold they claim as their reserves. He cites GATA’s work and says that if the gold market was fair and transparent without naked shorting of gold futures, the gold price would have reached $10,000 a few years ago.

The interview, the second part of a series of three, is headlined “There Is No Such Thing as a Free Market” and it’s posted at Gold Switzerland’s Internet site here:

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