Rabobank has just followed in the footsteps of ABN Amro which effectively defaulted by halting deliveries of gold bullion in April, as the Dutch bank will close customers’ gold accounts effective September 1st!
With the GOFO now negative for a record 8th consecutive day, it appears the wave of bullion bank defaults warned of by William Kay may be just getting started.
German financial journalist Lars Schall has released a MUST LISTEN interview with William Kaye, the Senior Managing Director of the Pacific Alliance Group of Companies in Hong Kong who made waves last week in a KWN interview alleging he owns gold bullion bars with the Bundesbank’s stamp and holds them in Hong Kong.
Kay clarifies his powerful claims to KWN, and drops another major bombshell,stating that the entire 3 month paper gold raid was orchestrated to prevent the imminent systemic gold default by the bullion banks in the days following the April gold default by ABN Amro:
Important when considered with the following:
According to the IMF, they disposed of 403.3 tonnes of gold between 2009 and December 2010. However, the net outflows of gold out of the NY Fed’s vault were zero for those two years (and the NY Fed is the main vault for the IMF).11 If this rather large quantity of gold did not come from another vault, then it is plausible that it came out of the NY Fed’s vault, which experienced a net drawdown of 408 tonnes in 2007-2008, a full two years ahead of “official schedule”. Given this inconsistency, it is reasonable to believe that the IMF leased its gold reserves (in the manner explained above) to tame the gold market and rescue the bullion dealers, which probably got a lot of physical gold redemption requests they couldn’t meet during the financial crisis. Then, later on, they “sold” their paper gold to the dealers to net the IOUs and settled in cash.
A similar observation can be made of the European Central Banks’ CGBAs, which all happened well after all the gold outflows from the NY Fed’s vaults.
We are of the opinion that this is what an “already decided” sale is: a Central Bank leases gold to a bullion dealer, that dealer sells the gold (or delivers it to a client) but never pays back the Central Bank its physical gold. Then later on, to balance things out, the Central Banks declare official “sales” of gold,but all that changes hands at that point is paper gold and cash, the real gold is long gone.