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Crosstimbers Okie
8th December 2009, 18:44
GoldStar sent out a letter to IRA holders dated November 23, 2009, stating that it was notified by HSBC Bank that HSBC would no longer provide depository services due to a lack of storage space. Then GoldStar was given 90 days notice of terminating all depository services to GoldStar! So, GoldStar is the process of moving all metals to Delaware Depository Service Company.

Is this fishy? Why would HSBC insist that metals it already stored be removed just because it didn't have the space to store more? Could there be something going on behind the scenes? maybe an effort to discourage precious metals IRAs by eliminating places to securely store the metals?

ryshay
8th December 2009, 21:02
This is a very interesting story that is in the mainstream media.
http://www.theaustralian.com.au/business/news/hsbc-closes-fifth-avenue-vault-to-small-time-gold-investors/story-e6frg90o-1225803547107

No one knows why HSBC kicked the small clients out of their vaults.

Theory #1) HSBC knows that big investors have a pressing demand NOW for vault space for their gold. They need space NOW or they will lose these clients to other banks. These big investors will pay more in fees than the ma & pa investors. So, HSBC impolitely told its small customers to get it and get out. This theory sounds the most likely. The article above explains that storing small coins takes up a lot more room than storing the same weight in 100oz/400oz gold bars.

Theory #2) HSBC is trying to avoid the FDIC siezing its small customers gold holdings in case HSBC becomes insolvent. HSBC is signaling that it is not a very safe place to keep your gold. HSBC knows it would be insolvent were it not for the suspension of mark-to-market accounting rules on their mortgage-backed crap. They don't want the publicity of ma&pa gold investors suing them to get their gold back.

Theory #3) HSBC is part of the gold cartel, and wants to create one less place for investors to store their gold, which could encourage gold selling. How many HSBC customers learned that their gold would have to be sold or returned, and just opted to sell at that moment? Because they had nowhere to put it right away? They did not have enough time to find a new vault to store their gold? Possible....

I think it goes to show you--don't trust the bullion banks. They are only looking out for #1. They can pull this crap on you at anytime.

Crosstimbers Okie
8th December 2009, 21:43
Thanks for that link!!

My wife has a Gold IRA through GoldStar. She will be old enough to start withdrawing without penalty in a few months, and it may be prudent to do so.