Banks Pledge Same Gold to Numerous People

Posted on December 22, 2012 by WashingtonsBlog

Big banks pledged the same mortgage to numerous people.

Similarly, big bullion banks borrow gold from central banks, and then rehypothecate it numerous times:

Video worth watching at the link

(Options contracts on all commodities are similarly over-leveraged.)

A 1999 study by the International Monetary Fund found that 80 central banks lent out 15% of their official gold reserves.

Central banks now appear to have too little gold to meet their commitments.

And private banks are raiding allocated gold accounts.


Banks Pledge Same Gold to Numerous People - Washington's Blog