DON'T Store Bullion with Bank of Nova Scotia

[Boot]

This is not earth shattering news i.e silver hedging, metals manipulation, but this happening from a Canadian Bank is new to me.

Written by Jeff Nielson
Friday, 09 April 2010 10:46
Articles & Blogs - Canadian Commentary
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Thanks to several Bullion Bulls members for passing along the link to another intriguing issue relating to the legitimacy of the global gold (and silver) market. A follow-up interview from the “King World News” site took aim at the bullion-storage of Bank of Nova Scotia – or more particularly, what they weren't storing: silver.

To provide the context to readers who haven't already absorbed all the relevant issues, there are two other “stories” - one old, one new – which closely relate to the revelations from the Bank of Nova Scotia's bullion-vault.

The first item was Morgan Stanley's bullion-fraud: where it only pretended to buy-and-store bullion for its own clients. Regular readers will already be familiar with this news, as I covered it in July of 2009 (see “Morgan Stanley pay damages for Precious Metals Fraud”). The other blockbuster news that ties in to this issue was the careless revelation by Jeffrey Christian of the CPM Group – yet another Goldman Sachs Stooge actively involved in the banksters' nefarious deeds in the precious metals market.

During the recent CFTC hearings, Christian blurted out that “the gold market was a hundred times the size” of the actual amount of “physical” bullion held by the (so-called) “bullion banks”. While I have long alleged that the banksters didn't have sufficient bullion to cover their gigantic “short” positions and their equally gigantic “custodian agreements” with the fraudulent, “bullion-ETF's” (most notably, GLD and SLV), the revelation that the banksters had leveraged their real bullion by (at least) 100:1 was a shock to everyone.

This sets the stage for the “King” interview with Harvey and Lenny Organ (father and son) along with Adrian Douglas – one of GATA's valiant directors. As a last detail, the Bank of Nova Scotia operates the primary bullion-storage vault for all of Canada and is the Canadian bank which is most active in the infamous “gold-trading” of the anti-gold banking cabal, which is rapidly losing its “grip” on this market, after a quarter century of ruthless price-fixing.

Lenny Organ had been repeatedly requesting access to the Bank of Nova Scotia's bullion vault, in order to verify his own, personal holdings – which he had chosen to buy and store through that bank. He finally obtained his invitation in September 2008, just before the most-massive spike in bullion-buying in decades (after the Wall Street-induced “crash” of 200.

The rest of the article is linked if you are interested:

http://www.bullionbullscanada.com/in...ary&Itemid=134

[DaleFromCalgary]

"Gold-sector veterans like Jim Sinclair have been urging people (in the strongest terms) to hold their own bullion. Yes, it is somewhat inconvenient and/or costly, but investors have a very clear choice, thanks to the inherent dishonesty of global bankers in dealing in bullion: you can bear with the inconvenience of storing your own bullion, or enjoy all the “convenience” of having bankers charging you to store paper."

This is why I keep my gold and palladium in my own safe-deposit boxes. Some critics say this is expensive but I pay $138 a year for the large (5"x12"x24") size, which is cheap. Some Americans get paranoid about the government seizing boxes but they can seize anything you own on any pretext. Canada has never seized gold a la FDR. In any event, my boxes are in credit unions and ATB Financial, which are provincially incorporated and thus beyond the authority of Ottawa.

[maplesilverbug]

This is why I keep my gold and palladium in my own safe-deposit boxes. Some critics say this is expensive but I pay $138 a year for the large (5"x12"x24") size, which is cheap.

And tax deductible.
I stopped renting my SDB because my bank upped the fee by something like 40% y-o-y -- no explanation, no 40% increase in box size, no increase in level in service...just more fees.

Some Americans get paranoid about the government seizing boxes...

Paranoid because they don't study/research their own (true) history and instead rely on fear mongers for their information.

...my boxes are in credit unions and ATB Financial, which are provincially incorporated and thus beyond the authority of Ottawa.

Seriously thinking about moving back to the AB. We are getting bent over here in California North.

[Boot]

Thanks for the feedback folks.
I keep my own silver, bullion, coins and have a healthy amount of mining stocks etc. I do mining summaries on Bullion Bulls Canada. I found that being systematic about the fundamentals helps in my trading practices. Just a hobby turned into a sm business venture. Regardless, I diversify in both the places stored and the form the metal takes. Boot

[Mighty Moose]

"This is not earth shattering news i.e silver hedging, metals manipulation, but this happening from a Canadian Bank is new to me."

From the persective of a Canadian, I love it! Too many people have the perception, touted by the MSM, that the Canadian banking system is wonderful & so squeaky clean because they've never taken big risks & are conservatively managed. Though, I agree it certainly looks like they have a very 'conservative' amount of genuine silver & gold. Yet, nobody seems to know that Canadian banks do not even require any reserve requirements, yes, that's right, our banks require a BIG FAT $ZERO in reserves. How much limitless lending can be done on that?

Here's another fun factoid! The head of Canada's central bank "The Bank of Canada" is a guy named Mark Carney. He used to work for Goldman Sacks for over a decade at a number of their offices around the world. Need I say more.

Up until 1974 or so Canada's national debt was around 50 billion. At this time, "The Bank of Canada" had been nationalized since 1949, meaning our government could borrow money interest free. Basically, as a nation, we loaned money to ourselves which would have to be paid back, by the taxpayer, of course, but without any interest to any other internal/external entity. After becoming a member of the "IMF" (International Monetary Fund) in order to get into other 'have-to' clubs like the G7, it was all down hill from there. Our bank was in effect de-nationalized and morphed into a central bank not much different than The Federal Reserve. From that time our debt has risen 10x to over $500 billion, due in part largely to COMPOUND interest being charged to the government for borrowing it's own money. Sound vaguely familiar!?

To add, just like the US, our bozo government has 'stimulated' our economy by borrowing great gobs of money from basically the same type of connected commercial banking system in much the same proportions, with interest, of course. Just put it on our tab, the tax-payer's tab.

The moral of the story is that virtually all modernized nations are being held hostage by this fiendish, world-wide, commercial (private), banking system. There is a certain amount of autonomy that occurs within some nations due to varying factors of population, amounts of resources, etc., coupled with geo-political ties, but there is no nation which has any 'good, trustworthy' kinds of banks. Some of them are just slicker when it comes to playing poker.

[Katwoman]

"Gold-sector veterans like Jim Sinclair have been urging people (in the strongest terms) to hold their own bullion. Yes, it is somewhat inconvenient and/or costly, but investors have a very clear choice, thanks to the inherent dishonesty of global bankers in dealing in bullion: you can bear with the inconvenience of storing your own bullion, or enjoy all the “convenience” of having bankers charging you to store paper."

This is why I keep my gold and palladium in my own safe-deposit boxes. Some critics say this is expensive but I pay $138 a year for the large (5"x12"x24") size, which is cheap. Some Americans get paranoid about the government seizing boxes but they can seize anything you own on any pretext. Canada has never seized gold a la FDR. In any event, my boxes are in credit unions and ATB Financial, which are provincially incorporated and thus beyond the authority of Ottawa.

Interesting option but I would rather hold mine at arms length.

[jimha]

"[I] In any event, my boxes are in credit unions and ATB Financial, which are provincially incorporated and thus beyond the authority of Ottawa.

I think you have a false sense of security about this. Should it ever reach the point that they decide to start raiding safety deposit boxes do you think that they would only do the federally incorporated institutions and exempt the provincial ones. Not a chance.

[Boot]

Ah, the Goldmans Sachs connection. Click, another piece of the puzzle fall into place. Thanks for that.

[DaleFromCalgary]

"I think you have a false sense of security about this. Should it ever reach the point that they decide to start raiding safety deposit boxes do you think that they would only do the federally incorporated institutions and exempt the provincial ones. Not a chance."

Canada is a confederation of provinces, not a federal state like Britain or the USA. Provinces sit at the bargaining table as legal equals with the federal government. Provinces have exclusive jurisdiction over what's theirs, and premiers are equal in rank to the Prime Minister. ATB Financial is part of the Alberta Ministry of Finance, not a freestanding bank, and Ottawa can no more raid it than Alberta could raid the vaults of the Bank of Canada. (ATB = Alberta Treasury Branch) No Prime Minister would dare start a simultaneous war against all the provinces by violating their integrity. If he did, he'd be facing a 13-front war (10 provinces and 3 territories). Alberta and Quebec in particular are strong on their rights. I don't know about Quebec but Alberta is said to have more long guns per capita than the USA.

[akak]

From the persective of a Canadian, I love it! Too many people have the perception, touted by the MSM, that the Canadian banking system is wonderful & so squeaky clean because they've never taken big risks & are conservatively managed.

Given the woefully obvious real estate bubble in Canada, one has to wonder just how "healthy" your banks can be, or will be, given all those mortgages that will surely go into default once your property values plummet.

I was in Vancouver last fall, and we found immense amusement in reading through the real estate listings and their prices --- they were absolutely, incredibly, monumentally surreal. Over $1,000,000 for some tiny, old bungalow of 1300 square feet? How can ANYONE not see this for the glaringly obvious bubble that it is?