That Physical Gold You Thought You Owned? You Didn’t

Via: ZeroHedge

Submitted by Tyler Durden on 03/27/2013

Earlier today, the CFTC issued an order and charges against two Boca Raton companies, (Joseph Glenn Commodities LLC and JGCF LLC, and their owners Scott Newcom and Anthony Pulieri) which accused the abovementioned of engaging in illegal, fraudulent off-exchange financed transactions in precious metals with retail customers, and also ordered them to pay over $1 million in restitution payments. Superficially, it would have been any other run-off-the-mill CFTC wristslap against an entity that is deemed not TBTF, and thus systematically relevant, in the parlance of the DOJ (unlike the Jon Corzines of the world, who are perpetually absolved of all crimes – actual and alleged), if only it wasn’t for one small clarification at the end of the body.

The relevant section is bolded below:

The CFTC Order finds that from July 2011 through June 2012, the Respondents solicited retail customers, generally by telephone or through Joseph Glenn’s website, to buy physical precious metals such as gold, silver, copper, platinum, or palladium in what are known as off-exchange leverage transactions. According to the Order, the customers paid the Respondents a portion of the purchase price for the metals, and Joseph Glenn and JGCF purportedly financed the remainder of the purchase price, while charging the customers interest on the amount they purportedly loaned to customers.

[T]he CFTC Order states that when Joseph Glenn and JGCF engaged in these illegal transactions they were acting as dealers for a metals merchant called Hunter Wise Commodities, LLC (Hunter Wise), which the CFTC charged with fraud and other violations in federal court in Florida on December 5, 2012 (see CFTC Press Release 6447-12). Hunter Wise was purportedly Joseph Glenn’s and JGCF’s source for the metal and the loans. As alleged in the CFTC Complaint against Hunter Wise and according to the CFTC Order in this case, however, neither Joseph Glenn, JGCF, nor Hunter Wise purchased or held metal on the customers’ behalf, or disbursed any funds to finance the remaining balance of the purchase price. The Order finds that the Respondents’ customers thus never owned, possessed, or received title to the physical commodities that they believed they purchased.

Read more: here

Uh Oh….
-Moose

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Why Is JPMorgan’s Gold Vault, The Largest In The World, Located Next To The New York Fed?

Via: Zero Hedge

When two weeks ago we exposed the heretofore secret location of JPM’s London gold vault (located under the firm’s massive L-shaped office complex at 60 Victoria Embankment) we thought: what about New York? After all, while London is the legacy financial capital of the “old world“, it is New York that the biggest private wealth of the past century is concentrated, and it is also New York where the bulk of the hard assets backing the public money of the world’s sovereigns are located, some 80 feet below ground level in the fifth sub-basement of the New York Fed, resting on the bedrock of Manhattan.

That the topic of the gold “held” by the New York Fed – historically considered the gold vault with the largest concentration of gold bars in the world – has become rather sensitive, in the aftermath of the Bundesbank’s request to repatriate it (surely, but very, very slowly), is an understatement.

Yet in the aftermath of some of the revelations presented here, we believe quite a few other countries will follow in Germany’s footsteps for one very simple reason:

Suddenly the question of whether their gold is located at 33 Liberty, or just adjacent to it, in what we have learned is the de facto largest gold vault in the world, located across the street 90 feet below 1 Chase Manhattan Plaza, doesn’t appear to have a clear answer.

Read more: here

Interesting…..Hmm..
-Moose

Is This Where The Secret JP Morgan London Gold Vault Is Located?

Via: Zero Hedge

by Tyler Durden on 02/16/2013

In a world defined by “financial innovation”, where $1 of hard collateral can spawn over $1000 in repoed and rehypothecated liabilities (and assets), where “shadow banking” is far more important than traditional bank liabilities (and to this date remains completely misunderstood), and where every month the central and commercial banks force create over $100 billion in credit money (which end consumers refuse to absorb and which therefore ends up in the stock market), the concept of a “hard asset” is an increasingly redundant anachronism. Yet while the Federal Reserve has emerged as the bastion of the New Normal’s financial innovation front in which the concept of money is backed by absolutely nothing other than the Dollar’s increasingly fleeting reserve status, when it comes to the definition of “Old Normal” money – gold – it still is the domain of the first and original central bank: London.

Read more: here

Is This Where The Secret JP Morgan London Gold Vault Is Located?

Via: Zero Hedge

by Tyler Durden on 02/16/2013

In a world defined by “financial innovation”, where $1 of hard collateral can spawn over $1000 in repoed and rehypothecated liabilities (and assets), where “shadow banking” is far more important than traditional bank liabilities (and to this date remains completely misunderstood), and where every month the central and commercial banks force create over $100 billion in credit money (which end consumers refuse to absorb and which therefore ends up in the stock market), the concept of a “hard asset” is an increasingly redundant anachronism. Yet while the Federal Reserve has emerged as the bastion of the New Normal’s financial innovation front in which the concept of money is backed by absolutely nothing other than the Dollar’s increasingly fleeting reserve status, when it comes to the definition of “Old Normal” money – gold – it still is the domain of the first and original central bank: London.

Read more: here