Article: Wealthy investors hoard bullion

[gls]

http://www.ft.com/cms/s/0/bf8246aa-8f13-11dd-946c-0000779fd18c.html

Investors in gold are demanding “unprecedented” amounts of bullion bars and coins and moving them into their own vaults as fears about the health of the global financial system deepen.

Industry executives and bankers at the London Bullion Market Association annual meeting said the extent of the move into physical gold was unseen and driven by the very rich.

“There is an enormous pick-up in investment demand. I have never seen a market like this in my 33-year career,” said Jeremy Charles, chairman of the LBMA. “The gold refineries cannot produce enough bars.”

The move comes as fears grow among investors over the losses at investment vehicles previously considered almost risk-free, such as money funds.

Philip Clewes-Garner, associate director of precious metals at HSBC, added that investors were not flying into gold simply because they saw it as a haven amid Wall Street’s woes. “It is a flight into gold because it is a physical asset,” he said.

“Vault staff are also doing overtime,” another banker at the LBMA meeting said, adding that investors in some countries were paying premiums of up to $25 an ounce above the London spot price to secure scarce gold bars.

Spot gold prices in London on Tuesday traded at about $900 an ounce, more than 25 per cent above the level before Lehman Brothers’ collapse. Although some traders said the rush into physical gold could boost prices, others cautioned that prices were depressing jewellery demand, capping any price gain. Industry executives said gold refineries and government mints were working at full throttle to keep up with investor demand, but acknowledged they were suffering from shortages, particularly on coins.

Johan Botha, a spokesman for the Rand Refinery in South Africa, which manufactures the Krugerrand, the world’s most popular gold coin, said the plant was now running at full capacity seven days a week. “Even so, now and then we have shortages,” he said.

The Austrian mint, which manufactures the Vienna Philharmonic, a popular gold coin in Europe, said it had extended work to the weekends to accommodate soaring demand.

Last week, the US mint suspended the sale of its American Buffalo coin after it ran out of stocks.

 

[ihsv]

About six months ago my wife's uncle, who runs a coin shop out in South Dakota, sold $30,000.00 worth of silver bullion to a big wig who worked for Chase Manhattan bank. They know exactly what's going on. This article doesn't surprise me in the least.

 

[Dr.3D]

About six months ago my wife's uncle, who runs a coin shop out in South Dakota, sold $30,000.00 worth of silver bullion to a big wig who worked for Chase Manhattan bank. They know exactly what's going on. This article doesn't surprise me in the least.

For sure, if they can keep people from buying gold and silver when people are looking for it, they can keep them poor while those who are able to buy larger quantities are going to have the protection they need.

Also, those in the know, will have already cleaned out the stocks of the bullion dealers before the poor people (not in the know) have had a chance to buy any.

By keeping the supply way below the demand, the government mints are able to accomplish the agenda of keeping the poor, poor and the rich, rich. Meanwhile, they are able to suppress the market prices for these metals and still not lose out by making the low prices good for those who are poor and would like to buy the metals.

 

[TheEvilDetector]

making the low prices good for those who are poor

you mean rich?

 

[Dr.3D]

you mean rich?

No, buy suppressing the price of the precious metals, they make the U.S. dollar look good, and at the same time, make the poor able to buy more of the metals at a lower price. BUT, since there are no precious metals to be found, the poor lose out anyway.

 

[Brian4Liberty]

This is what I was getting at in my "pondering gold" thread. The ultra rich and connected are getting all of the physical metals, especially in large bars. Leaves nothing for producing more 1 oz coins.

Of course there is no shortage if phantom paper gold. They are keeping the price down with paper, while they buy up all the physical metals.

 

[TheEvilDetector]

No, buy suppressing the price of the precious metals, they make the U.S. dollar look good, and at the same time, make the poor able to buy more of the metals at a lower price. BUT, since there are no precious metals to be found, the poor lose out anyway.

Oh ok I see that you meant it like this:

"Meanwhile, they are able to suppress the market prices for these metals and still not lose out even though the low prices are also good for those who are poor and looking to buy."

 

[freelance]

It's really just a scam to keep the small buyer out. Couldn't have anyone clawing their way out of the middle class, the new euphemism for poverty.

 

[Sarge]

When they have all their gold and silver, you will be allowed to by the crumbs.

Tells me sooner or later the metals are going to explode when we are again allowed to buy.

 

[Dr.3D]

Oh ok I see that you meant it like this:

"Meanwhile, they are able to suppress the market prices for these metals and still not lose out even though the low prices are also good for those who are poor and looking to buy."

Yes. They make the dollar look good by keeping the spot prices of the metals down and the rich can buy the big bar product but the poor are stuck with the smaller not available product.

 

[cheapseats]

Those Hoarders who are American should be flushed out. There are people, individuals, who have made fortunes on the effort and ingenuity of American Labor, within the construct of an elaborate and expensive American Society. They are sitting on their funds, waiting for stoopid American Taxpayer to buy up all the crap, so they can sashay back into the market and snap up all the deals.

The same way they're snapping up foreclosures.

We are at war and we are in crisis. I contend that Uber Rich Americans hoarding cash at this time is traitorous.

Surely, the Bush Dynasty feels compelled to match Warren Buffet's investment? Maybe Laura and Jenna could at least donate the proceeds from the CHILDREN'S BOOK they managed bravely to pen while the American economy, under the leadership of their husband/father, went into the crapper.