By JR on Saturday, September 03, 2016
Goldman Sach & HSBC Bought 7.1 Tons Of Physical Gold Bullion!
This is a straw in the wind. The banks clearly expect a collapse in the value of the Greenback and want a better store of value. They are probably right. With all the new money Obama has printed, there has got to be a big drop in the purchasing power of the dollar soon. I do have a small amount of gold but I am mainly into blue chip shares and real estate. They should be pretty protective in an economic crisis too
Mind you, being in Australia has extra advantages. Our government has spent beyond its means too but has financed that through borrowing (denominated in U.S. dollars), not running the printing presses hard at the mint. And if the U.S. dollar collapses, Australia will be able to get a heap of U.S. dollars very cheaply and thus retire a big lot of its debts very easily.
A wise American would put a lot of his funds into the banks of any major country with a well managed economy. Canada would be a bad bet there now it is the hands of Pretty Boy. There is no doubt he will manage the Canadian economy badly
On August 6, 2015, Goldman Sachs, which has issued very bearish forecasts on long-term gold prices, took delivery of a 3.2-ton purchase of physical gold. On August 6, 2015, HSBC which also claims to be bearish, took delivery of a 3.9-ton purchase of physical gold.In both cases, the purchases are registered as being for the benefit of the bank's own house account, rather than the accounts of customers.
On August 6, 2015, Goldman Sachs (NYSE:GS) and HSBC (NYSE:HSBC) took delivery of a sum total of 7.1 tons of physical gold. No, I have not made any typographical errors. And no, I am not talking about electronic paper claims. I am talking about shiny yellow metal stuff that you can touch and feel.
The gold bars were not purchased for bank clients. They were purchased for the banks themselves. How do I know this? They are designated by the exchange as being for delivery to the bank's "house" accounts at COMEX, not to client accounts.
Goldman Sachs, alone, took 3.2 tons worth of physical gold bars. Yet, even as the firm builds its stockpile, Goldman tells clients not to do it. According to Goldman's Jeffrey Currie, the long-term outlook for gold is bleak.
They bought 3.9 metric tons at COMEX, no doubt at rock bottom prices, and it was just delivered into the bank's house account. Note that we are NOT talking about paper-gold. Both bought physical gold bars! Apparently, top Goldman and HSBC executives are "gold bugs." They do not, apparently, believe in the promises made by the gold trust (NYSEARCA:GLD), or at least they are not willing to use the trust's shares as a substitute for hard metal bars.
Physical gold is a long-term investment, everywhere and always. They are not particularly hard to sell, especially now, but short-term trading would be much easier with paper-gold products like GLD or gold futures. Remember, vaults cost money, as do big men with big guns and the knowledge of how to use them. The banks are choosing to accumulate and hoard physical gold bars for a reason.
Note. Most new money is created via the banks. Printing it is mainly a metaphor.