Dear Friends,

I still am plagued by the question, WHY?

You make more money from investor accounts than you ever will from large commercials in the same amount of space.

Storage is space times charges which equals revenue. After that it is all computerized billing and confirmation.

With gold climbing steadily higher while showing signs that presage a ballistic move upwards, I have to conclude that there is a problem in the gold market itself stirring below sight that the community has little or no idea about.

We have reviewed all the present and potential economic problems and know them better here than anywhere else.

I told you a long time ago that there are times when the hair stands up on the back of my neck. This is how gamblers in the final analysis know when to hold or fold them. This is what Bert Seligman and Jesse Livermore had that no one since then has had.

The story that small clients are not wanted would not require multiple Brinks trucks. Small coin and bullion deliveries are made by US mail.

What does HSBC know that is the basis for wanting to get rid of good business? It has been reported that HSBC storage internationally has been backing out of the gold business for awhile.

Why?

I smell delivery problems not just from HSBC, but maybe widespread.

I wonder if there might be a problem with authenticity. I wonder if exchanges have ever questioned the authenticity of their warehouse stock.

We live in a soulless, depraved world. Every possible scam has taken place.

Depending on whether the subject is gold or silver, reports indicate scammers are mixing a different ratio of lead/tungsten to match the density of gold or silver and putting it in the inside of the hollowed-out bar. The only way to detect it is by drilling or by gamma ray scanning.

We know coins have been adulterated for years. That is why we do not buy other than from well established coin dealers.

Regards,
Jim

Gold Loans
Work with the market leader in Gold Loans and Precious Metals trading.

HSBC is a founding member of the London Bullion Market Association (LBMA) and is the only institution with membership in all categories of the daily Precious Metals fixings: Gold, Silver, Platinum and Palladium. We are active in all facets of the bullion business, the physical bullion market and in structured hedging products. Let HSBC finance your Gold inventory and provide you with hedging strategies for your business.

Advantages
Relatively low-cost funding of Gold inventory.
Effective financing of asset conversion cycle.
Key component of Gold-price hedging strategy.
Our vaults handle safe custody and clearing accounts.

Choices and Features
Any amount
Committed or uncommitted
Gold Funding Rate-based pricing.
Fixed & floating rates

Physical gold available
Delivery to European and US locations.
Repayment from physical stocks or from Precious Metals trades.
Typical maturity 1 – 3 years.

Considerations
Business track record
Projected business requirements
Financial statement disclosure

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From the Wall Street Journal:

WSJ: HSBC has told retail clients to remove their small holdings from its fortress beneath its tower on New York City’s Fifth Avenue. The bank has decided retail customers aren’t profitable enough and is demanding those clients remove their gold to make room for more lucrative institutional customers.

     That move, of course, is creating headaches for companies in the physical gold business.

"I have never seen any relocation like this," says Jonathan Potts, managing director of FideliTrade, the parent company of the Delaware Depository Service Co., which has two warehouses in Wilmington. FideliTrade’s two vaults have been filling up at an unprecedented pace, in part because it is taking in metal that has been ejected by HSBC.

Dealing with the fallout from HSBC’s decision has become a full-time job for David Norris, executive vice president of GoldStar Trust Co., a Canyon, Texas-based retirement-account trustee, which organizes metal storage for its clients.

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Jim Sinclair’s Commentary

This article says that even Commercial accounts have been asked to leave:

Another Gold Rush for Wilmington Depository

Business already is good for a Wilmington, Delaware bullion and rare coin depository that opened three years ago, but it’s expected to be even better in the weeks ahead now that a major New York City bank depository has told many of its customers to remove their valuables.

“As soon as the news broke that HSBC was kicking out individual investors and even some commercial accounts to accommodate storage for large institutional accounts at its facility in Manhattan, I started getting phone calls from worried investors and even executives of some commercial firms who suddenly need a safe place for their gold and silver coins and ingots,” said Robert L. Higgins, CEO of First State Depository Company LLC that opened in Wilmington in June 2004.

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