Just thought I'd start a thread about KITCO and their legal troubles.
What is concerning to me is that KITCO is how I intend to extract metal from GoldMoney.com since they have an arrangement where you can purchase gold/silver directly from KITCO using GoldMoney goldgrams. How else can I get my physical metal from GoldMoney other than flying over there and picking up 1000 ounce bars of silver?
Can't offer advice on the transaction you're trying, but here is a list of the discussion threads at the Kitco forums about this issue:
Kitco on Tonite's Quebec News Broadcast
Is KITCO in Trouble???
Is Kitco Pool safe ATM?
The links in the previous post provide a lot of insight on the Kitco Pool Accounts. But what really helps is first hand experience. I have had gold and silver pool accounts for about 10 years. On Friday, last week, I sold some silver and the money was wired to my account on Monday with no problems. I still have a lot in my pool account but am watching the situation. I think the accounts are "safe" for the moment but it might be better to buy real physical at this time because the EE is probably getting desperate... and if they ever did want to confiscate... the pool accounts are easy targets.. I bought most of my pool accounts 5-8 years ago... so it is likely time to move to physical... if you spend any time investing you will have great days and bad days.... once lost an internet feed with a lot of options I needed to sell.... cost me a lot of money... I have had companies that I have had a lot of common stock in declare bankruptcy... and common is wiped out... the old adage of diversification applies..... pool accounts are handy for buying/selling but you have to ask yourself if they are what you want .... I like pool accounts but we all know the wheels are coming off the wagon.... do not have too much in your pool account..... it is to easy of a target.... and the government will do what ever it wants.... I had a lot of liberty dollars and silver in a "safe vault" in ID... the government stole it............ pool accounts are like the liberty dollar certificates. ...silver was in an audited vault .....government stole it.... what can a small guy do?.... this mess is still in the courts.... but you can not get to your property regardless of what the courts say.... years from now we might get justice.... you can not buy food with this type of justice... my advice... pool accounts are probably safe for now but do not put more in than you can afford to lose.
So IF Kitco churned a billion dollars worth of paper transactions what impact does that have on scrap and recycled volume?
Seems to me that a significant portion of this supply just went "poof" in a cloud of paper fraud (if the allegations are true).
note to Australia, look into the Perth Mint Certificate program. Canada sniffed their den of thieves, will you?
Customer Service Rep from Kitco explains that their pool accounts are not insured against bankruptcy. Slim to none he says....in 2006. Ouch.