Swiss Bank Refuses Access to Client's Physical Gold Holdings

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Reason number
one for why storing all of your gold in an allocated or unallocated
bank account is a bad idea:

A client
of a major Swiss bank was recently refused access to his physical
gold and had to hire attorneys and threaten to expose the bank
publicly before finally getting it back in his own hands, according
to Jim Rickards of Omnis.

inference is that that gold was not there,” Rickards told
King World News. “The bank had to scramble, go out and find
it somewhere before they could make good delivery.”

expects the world will eventually go to a gold standard-backed

me, the big issue is, is it going to be intelligent or is it going
to be ugly?” Rickards says. “Is it going to be something
we think about, we have a public debate, hearing in Congress …
we give some thought to, and then, over time … we do it in
stages” so that markets can adjust.

says Rickards, we’re on “the other path,” ignoring
the issue and acting as if gold plays no role in finance, “which,
of course, it does, keep printing money until almost spontaneous
collapse of the dollar and then, in the midst of chaos, on an
emergency basis, have the president announce that we’re back
on the gold standard.”

advice? Get your gold out now before other banks begin following


When it hits
the fan, and you really need access to that allocated gold you bought
through a bank broker, you can be assured that it won’t be
available. Imagine a scenario where the US dollar completely collapses
causing panic across the world. Everyone with physical gold holdings
is going to head straight to their local banker to claim and take
physical delivery of their precious metals. But, like paper
gold assets (i.e. commodity ETFs), the chances are slim that your
trusted bank will be able to make delivery, especially if the majority
of PM holders are asking to make physical withdrawals.

not suggesting that you take allocated/unallocated storage completely
out of your wealth preservation strategy, we’re simply suggesting
that you consider diversifying even your precious metals holdings:

  • Don’t
    keep everything at one bank

  • If possible,
    keep your assets in different regions, countries
  • Secure your
    gold in a personal safe deposit box (or two). Take note that safe
    deposit boxes aren’t always the safest way to store
    keep this in mind.
  • Consider
    leaving some of your holdings with a trusted family member. We
    hesitate to make this recommendation, but there is a little bit
    of risk involved in all methods of gold storage. It may even be
    possible for one to store reserve gold or other monetary instruments
    with a family member without necessarily telling them you’re
    doing so, but this also has its risks – so think long and
    hard before you consider this avenue.
  • Get a shovel
    and start digging

The key, in
our opinion, is diversification in all aspects. Consider Murphy’s
Law and plan for worst case scenarios. When the SHTF, be prepared
to lose some of your reserves and preps, including PM’s, food,
and other items which you may be depending on to see you through
an emergency or disaster.

Plan A is great.
Plan B is even better. Plans C, D, and E will give you peace of

from SHTF Plan.

11, 2010

Slavo [send him mail] is a
small business owner and independent investor.

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