If You Don’t Hold It, You Don’t Own It

Let this be a lesson to you all…

Precious Metals Storage Scam: ‘Sorry, Delivery Is Not Possible’

Author: Mac Slavo

If you’ve been investing in precious metals then you’ve likely made a pretty decent profit on your wealth preservation investment over the last several years. With the popularity of precious metals increasing exponentially as the economic crisis and geopolitical climate heats up, investors looking for protection against inflation and instability have been pouring into precious metals ETFs, stocks, contracts, and pool accounts. For many, the physical metal has become the investment vehicle of choice, but a large portion of investors, especially large buyers, choose to store those metals with their brokers/dealers.

When all hell finally breaks loose, and it’s time to finally sell those assets and trade them in for either paper currency, real estate or other investments, how sure are you that you will be able to take physical delivery of the metals you’ve purchased?

Bill Cramer of St. Louis was pretty confident everything was on the up-and-up. He purchased 5000 ounces of silver back in 2003 for a spot price of $4.94 and stored them with an east coast broker. When he was discussing his holdings with his coin dealer, the dealer dared him to try and take delivery of the metal.

Bill took him up on that dare and contacted his broker requesting to take delivery of his supposed physical metal holdings, for which he had been paying storage fees for years. As you may have guessed, the broker advised him that physically delivering the metals was not possible:

So, I took his dare, I called them up, it was June of last year. The metal I had purchased in January of ’03. I said “I’d really like to take delivery of my metal – the five thousand ounces.” They go “well, that’s not possible.” And, I go “well, I’ve been paying storage fees since January of ’03, what do you mean I can’t take delivery.”

“Well, it’s part of the account. It’s called a pool account. And, you don’t take delivery, you just participate in the appreciation.”

So I immediately sold that 5000 ounces at $18.33 and I had my cell phone in my hand and I immediately purchased 2500 silver eagles at $18.41 and that’s how I reconciled the problem of not being able to take delivery of my physical metal from a brokerage account.

Source: CNBC

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5 comments to If You Don’t Hold It, You Don’t Own It

  • savethepopulation

    I agree…but what do you think of James Turk’s Gold Money?

    My father, who is just getting around to precious metals, wants to invest using Gold Money instead of holding the physical.

    Gold Money seems the next best option to holding physical…but I’m still wondering about when the SHTF.

  • Hi,I am glad you you like my quote……..Ponce

    “If you don’t hold it, you don’t own it”… Ponce

  • Silver Shield

    The man, the myth, the legend… Ponce. :)

  • Ponce

    Hey buddy, congra on your new coin with the words of “the myth, the legend” hahahahahaah, you should had told me ahead of time about it and then after you did it then to send me one as a surv……..even if you did it backwards.

  • Silver Shield

    I felt for the BitCON coin I wanted to show the lies of ownership dropping into the truth of holding it in your hand.

    Funny how BitCoin is having a little problems with Mt Gox closed and then the flash crash today of 80% on the remaining exchanges.

    Perfect timing I feel that will ultimately bring a lot of people back in to the real solution, silver.

    Send me your address and I will send you one.

    Hope you are well.

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