Unallocated

58
Wed, Mar 24, 2021 - 11:17am

The smoke from Australia continues to billow today as more investors globally begin to figure out the difference between "allocated" and "unallocated". Will these embers become a full blaze and bank run? We're still a ways from that moment but it's certainly not out of the question at this point.

With prices still in the tank and under the Bullion Bank thumb today, let's focus instead upon this growing conflagration. Again, it has not yet reached a crisis point, but it's really just getting started, too, so no one can say for certain where this will lead.

Earlier this week, we focused upon the worsening case at The Perth Mint. Australian economist John Adams has been all over this story and here's an interview he recently recorded with that Maneco guy:

But, of course, it's not just The Perth Mint. There are unallocated account schemes being run around the globe from Zurich to London to Montreal. Here's just one that's being exposed today...and it's in Australia, too. Below is a note posted to Reddit followed by an email from the author that was supplied as proof of her ordeal.

Now as you know, we've been railing against this scheme for over a decade. The picture that accompanies this post was created by Pining way back in the day. Yes, that's me in the middle being flanked by Ned and Andy. Speaking of Andy, here's a guest post he wrote for us in 2012 that describes in detail how and why The Banks "flywheel" metal into and out of the shams GLD and SLV:

And the best way I've found over the years to put this into a real world perspective is this analogy:

Suppose you own a car in New York City. It's nice to know you have one so that you can get away whenever needed. However, it's also a major pain to park (store) and insure it...and very expensive, too. So you find a garage (trusted car storage company) that promises to hold your car for you at a sharply reduced fee. You park your car there with the promise from the garage that you can take your car out for a spin whenever you need it.

The garage soon figures out that there are lots of other NYC residents that would enjoy this arrangement and that many of them will never have any immediate use for the car. So they make the same promise of "immediate vehicle availability" (an unallocated car) to about 50 other people using your car as the bait. All 50 people now feel safe and secure knowing that they have a car at their disposal but they are also very happy to have reduced the costs normally associated with owning a car.

This arrangement is all fine and dandy for you and the other 50 owners of your car and, it's all great fun and very profitable for the garage, too. Until it's not.

What happens when, one day, you show up expecting to take your car for a spin and you find out that the car isn't there? Instead, it has been loaned out to one of the other "owners". You demand immediate delivery of your car because your bags are packed and you're ready to roll but the garage claims that they need 60-90 days to secure your car for you. The best case scenario for you at this point? You decide to patiently wait for your car but, when it finally comes, the car looks similar to the one you remember owning but the VIN number doesn't match.

The worst case scenario for you? The other 50 owners of your car get word of the scam the garage has been playing and they all appear at once, demanding immediate delivery of the car they've been led to believe they own. At that point, the garage simply closes its doors and the scam operators leave town...and all of the people who thought that they owned a car for investment or emergency purposes are left holding the bag.

Again, either you own it and hold it or you don't. There are a few other trusted alternatives like allocated storage with our advertisers, other select bullion dealers and OneGold but that's it. If you own "unallocated" gold or silver, you are simply playing with fire and taking your chances.

So what to do about this? Get in line today and demand immediate delivery of your unallocated account. As in the example above, if you're the first person at the garage demanding your car, there's a chance that you'll eventually be delivered a car. However, if you're number 42, you're going to be out of luck.

Just one other item today...

For months, we've been waring you about the pending "stagflation". It will take years for the global economy to fully recover from the Covid Crisis...if it ever does. In between, massive money printing and direct stimulus payments (helicopter money) will eventually lead to price inflation, even at the CPI level. This combination of zero/low growth with steep inflation is called stagflation.

The last period of significant stagflation in the US was in the late 1970s. This was also a period of sharply negative real interest rates. This was also a period where Comex gold moved from $100 to $875 in about 3.5 years.

We'll dispense with a chart update this morning and save that for today's podcast because, as I close, not much is happening. I guess, if anything, we should be glad that Comex silver isn't down another 50¢ today...given that it was smashed for 50¢ both Monday and Tuesday.

Several members have asked for a public post this week so, as I close, just a notice that this is a free, public thread. Please take the link and post and paste it anywhere you'd like. Perhaps we can help to spread the word a little regarding the danger of "unallocated".

Have a great day!

TF

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  58 Comments

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au0079
Mar 25, 2021 - 10:51am

Unallocated for the unwashed masses

Unallocated accounts are at the back of the line.... not a priority; too bad so sad...; you took the cheapest route... so?

That's right.... allocated accounts/metal are at the head of the line.

Deal with it and wait your turn.

I can only imagine it takes time to crank up production and fabrication; of course if the Perth mint actually has empty vaults; the world will find out.

JackPutter
Mar 25, 2021 - 9:40am

Didn't Mark Rich of Glencore mess around with Goldcorp?

I seem to remember a connection that was in the news around the 2009 timeframe.

Meanwhile everyone should be aware of the ethylene oxide - cancer connection. The "test swabs" being rubbed against the sinus/brain barrier are sterilized with ethylene oxide a known carcinogen. Brain cancers are showing among those repeatedly being "tested".

rwmctrofholz4 oz
Mar 25, 2021 - 7:08am

your post reminds me of....

a customer that I have. He owns a local hotel chain that came under huge stress when covid hit last year. I asked him if he wanted the same Spring cleanup on the lawn and landscaping beds as he'd done in the year's past. He replied: "We need $65,000 to break even each month. We've only done $28,000 the last few months. You know what? Fuck it! If we're going down, we're going to look fantastic while we're doing it."

KGindiana rod
Mar 24, 2021 - 8:43pm

LCS Report

Talked with my LCS :

- suppliers advising LCS they cannot source Swiss products, at all, presently. They can get Maple Leafs, but not many and still on back order. All basic silver supplies remain in very tight supply. Nothing on display.

- 3 walk-in customers this week advising they can't get their silver out of their investment funds - where they thought it was a sure thing. People receiving checks from funds instead of taking receipt of physical. Then coming to LCS for the shiny.

- Customers more willing to pay local/state taxes. One customer got mad at LCS holding firm on taxable transactions, took his 100k check elsewhere, and was humbly back an hour later. No such "deals" left on the street.

- LCS dealer just sold a rental property and is putting all the cash into inventory - personal inventory. Declining other RE deals. Very nervous about current situation.

I asked for some redacted proof of the "defaults" (emails, letters, etc). Will see.

flyover country mid-sized city in the US.

guyesonH8Fiat
Mar 24, 2021 - 7:02pm

withdrawn vs delivered 'status'

Okay, I thought I had this figured out. Now, after 20 years, I'm confused and not the dementia type of confusion.

Is taking the term 'delivery' the same as 'withdrawn'?

Isn't 'withdrawn' the category that REALLY matters? (especially if 'delivery' actually just stays in the CRIMEX?)

Keep stackin!

AGXIIKmack
Mar 24, 2021 - 6:43pm

Mack. You know you're getting old

----you remember back when you were young, reading TFMR every day, full of piss and vinegar and stacking like a maniac because 500 ounces of silver wasn't really that heavy. Really! Why did you stack like crazy? Because you were young and going to live forever. What's a ton of silver stuffed in the bedroom closet when you were young.

Today, after a new hip, a new knee, a new pace maker, a new CPAP machine (both connected to the Skynet Collective) and well, eff me, silver is freaking heavy. And I'm 11 years older. And silver is still a rush. So is gold. I'll leave the heavy lifting job of benching 300 lbs of Bitcoin on a bar to the youngsters

Like my friend on Silver Doctors, Canadian Dirt Lump was heard to opine and expressed it best.

'I got my stack; everything else is bullshit'

Copy that

Cheers

AGXIIKmungerville
Mar 24, 2021 - 5:47pm

I remember when Tulving Motors had a fleet of silver BMW

Mercedes and Cadillacs; 100 of them each with 100 competing claims. One day a bunch of people showed up and guess what?

No mas Plata El Carro.

Fast forward to Perth Mint 2021. Proprietor Bron Sucheki

100 ride share cars for rent in the lot. But these aren't $100,000 Benz rollers. The lot is filled with 1983 clapped out beatermobile Toyota Camrys and Nissan Sentras. Real pieces of crap. Each with a sign on the door saying:

'Steal this car'

A bunch of priggers, droogies and wankers from Melbourne, piss drunk on Fosters, rolled up and nicked the lot the day before 5,000 co owners show up for their drives.

I love Aussie profanity. The air was thick with it on the day. Aggro sold by the pint and pound.

Bron had long since bugged out for the territories, finding suitable employment at Montetary Metals.

The car owners? Each got a gold embossed and framed certificate of authenticity with the words

HERE'S YOUR CAR. NOW BUGGER OFF MATE

4 oz
Mar 24, 2021 - 5:18pm

~

Might need therapy; I'm adding PM's like it's the end of the world here in March! Something is wrong with me!! Ordered an new Gold Buffalo just a few minutes ago.......seriously I'm buying like crazy.....both Gold and Silver here in the last 10 days or so........like I really believe we aren't going to get to add PM's much longer.......

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Connie
Mar 24, 2021 - 5:13pm

I think I'm going to change

I think I'm going to change my user name to "My name is Perth Mint, and, yeah, I defaulted, so what are you going to do about it?"

mavensmjbarry
Mar 24, 2021 - 4:47pm

FWIW

That was just a C/P from someone over on Reddit. I can't take credit for that.

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