Adrian Douglas: LBMA joins gold hiding movement

Don't believe this picture, it's false advertising! ;) This is news that we expected, but which is therefore confirmed. If you have this chance, hang on to the meager gold coins you already have, because a priori the reserves of Ford Knox are rather empty, judge instead:

Adrian Douglas: LBMA joins gold cover-up freeze
Submitted by cpowell on Sun, 25/07/2010 21:31 PM. Section: daily dispatches

By Douglas Adrian
Sunday, July 25, 2010

The London Bullion Market Association has taken the highly unusual step of blocking access to statistics relating to the trading activities of its member banks in bullion.
This information has been available to the public since 1997, but as of this week it is available only to LBMA members. (See http://www.lbma.org.uk .)

I recently wrote a series of LBMA talks (see References 1-4 below) using the association's own data to show that LBMA's bullion banks are operating on a "fractional reserve" of base.
My analysis indicates that banks hold only 1 real ounce of bullion for approximately every 45 ounces of gold they have sold, a reserve ratio of 2,3 percent.

At the US Commodity Futures Trading Commission's 25th public hearing on precious metals futures markets, I cited the LBMA statistics to label the “unallocated gold” of bullion bank accounts as a Ponzi scheme.

This hearing was filmed and posted on the CFTC website, but the bullion banks have not made a public statement to refute what I said.

In fact during this hearing Jeffrey Christian, CEO of the CPM Group, acknowledged that what is often referred to as the "physical" market is actually a largely paper market "of trading gold and silver only if they are financial assets and not physical metals."

Christian said that 100 ounces of paper gold are traded for every 1 ounce of physical gold.