Canada's only bullion vault ? M TEEEEThe Latest Gold Fraud Bombshell: Canada's OnlyBullion Bank Gold Vault Is Practically Empty
By Tyler Durden
Created 04/07/2010 - 10:30
Continuing on the trail of exposingwhat is rapidly becoming one of the largest frauds in commodity marketshistory is the most recent interview by Eric King with GATA's AdrianDouglas, Harvey Orgen (who recently testified before the CFTC hearing)and his son, Lenny, in which the two discuss their visit to the onlybullion bank vault in Canada, that of ScotiaMocatta, located at 40 King Street Westin Toronto, and find the vault is practically empty. This is a relevantsegue to a class action lawsuit filed against Morgan Stanley, which wassettled out of court, in which it wasalleged that Morgan Stanley toldclients it was sellingthem precious metals that they would own in full and that the companywould store, yet even despite charging storage fees was not in actualpossession of the bullion. It appears that this kind of lack of physicalholdings by all who claim to have gold in storage, is pervasive as theactual gold globally is held primarily in paper or electronic form.Lenny Organ who was the person to enter the vault of ScotiaMocatta, says"What shocked me was how little gold and silver they actually had."Lenny describes exactly how much (or little as the case may be) silverwas available - roughly 60,000 ounces. As for gold - 210 400 oz bars,4,000 maples, 500 eagles, 10 kilo bars, 10 one kilogram pieces of goldnugget form, which Adrian Douglas calculates as being $100 millionworth, which is just one tenth of what the Royal Mint of Canada sold in2008, or over $1 billion worth of gold. As Orgen concludes: "The gameends when the people who own all these paper obligations say enough andtake physical delivery, and that's when the mess will occur."
Alsonote the interesting detour into what Stephan Spicer of the Central Fund Of Canada, said regarding hisfriend at a major bank, who wanted access to his 15,000 oz of silver,and had to wait 6-8 weeks for its to be flown in from Hong Kong.
Itis funny that central bankers thought they could take the ponzimentality of infinite dilution of all assets coupled with infinite debtissuance, as they have done to fiat money, and apply it to gold, inessence piling leverage upon leverage. They underestimated gold holders'willingness to be diluted into perpetuity - when the realization thatgold owned is just 1% of what is physically deliverable, you will seethe biggest bank run in history.
Linkto full Eric King interview.
https://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2010/4/7_Andrew_Maguire_%26_Adrian_Douglas.html