Listen up folks, this is important. Our goal on this blog is to give you the tools you need to buy, sell, and trade gold and silver. This current news story is related to why some of us buy gold and silver, and is directly related to why we suggest always taking physical delivery of your gold and silver.
On Friday, it was reported that Deutsche Bank was denying delivery of physical gold to investors of Xetra gold.
Some of the clients of Germany’s biggest bank, Deutsche Bank, are experiencing a problem when they go to collect on their ETF fund Xetra Gold, according to German analytics website Godmode-Trader.de. On the website Xetra Gold States that it’s clients have the right for the physical delivery of the gold. However, Deutsche Bank failed to deliver when asked by some big clients. When they asked for their gold, they were told “that service is no longer available”.
They were told if they wanted the physical metal to take the cash and go into to the market and buy it. Basically what this means is if you’re holding paper gold, that is to say shares of an EFT gold fund, you don’t actually own the gold. I believe this is only the beginning since hundreds of ounces of paper gold I traded for each ounce of physical gold. If the General public learns that their ETF ounces of gold can not in fact be turned in the physical gold when they were told that they could, all faith is going to be lost in the system and we may see gold reach appropriate pricing based on ACTUAL availability instead of being manipulated with all of these naked shorts.