The Bullion Buzz - November 3, 2009

The Bullion Buzz - November 3, 2009

“The government’s finances not only are out of control, but the actual deficit is not containable. Put into perspective, if the government were to raise taxes so as to seize 100% of all wages, salaries and corporate profits, it still would be showing an annual deficit.”

--John Williams

GOLD

The Raid That Rocked the Met: Why Gun and Drugs Op on 6,717 Safety Deposit Boxes Could Cost Taxpayer a Fortune
Adrian Levy & Cathy Scott-Clark

This recent incident in the UK underscores the risks of private vault facilities for the storage of bullion. In June 2008, traffic in London, England slowed to a standstill as drivers slowed to gape at the massive police operation underway. Police cars and armored trucks jammed up the roads; dozens of armed officers in bulletproof vests were standing by. From the sheer manpower and weapons on display it looked like Britain’s capital was under a terrorist attack. But the ambitious Metropolitan Police operation had nothing to do with national security. In all, more than 500 officers took part in the top-secret Operation Rize, raiding smart addresses in well-heeled parts of the capital, as well as an office and three homes. The police rolled through London in a convoy made up of scores of patrol cars, armed-response vehicles, outriders on their bikes and vans with their windows shielded by metal cages. At the various premises, which housed 6,717 safety deposit boxes, detectives forced their way past security guards, demanding the secure doors that led to the strong rooms be opened. Never before had British police been granted a warrant this broad; smashing into each and every safety deposit box was tantamount to raiding an entire subdivision. Ostensibly, the police were looking for criminal networks that used safe deposit facilities to hide assets, but the paper trail reveals that as few as 10% of the boxes had any connection to serious crime. Scores of innocent box holders have struggled to recoup their money and possessions, been forced into legal trench warfare with police lawyers and told they must prove how they came by the contents of their boxes. Some, having had their possessions returned, claim that money and jewels are missing. Now, Operation Rize is defending itself before two Judicial Reviews, being pursued for millions in legal fees by innocent box holders and facing inquiries into theft. The political, judicial and financial costs are stacking up, and the entire operation may end up costing taxpayers a fortune. While private vault facilities may seem appropriate they run this type of risk which would not be applicable for bank owned vault facilities where bullion is stored on a fully allocated insured basis.

www.mailonsunday.co.uk/home/moslive/article-1222777/The-raid-rocked-Met-Why-gun-drugs-op-6-717-safety-deposit-boxes-cost-taxpayer-fortune.html

Read all this week's Buzz article synopsis' by visiting: http://www.bmginc.ca/document/625

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written by Jeff Nielson, November 07, 2009

I saw a scary, related article a couple of days ago - but coudn't find this thread to post it (sorry).

Apparently it's become a multi-BILLION dollar racket for U.S. states to confiscate property and bust into safety-deposit boxes by branding this property as "unclaimed" or "owner unknown". The degree of this state theft varies from state-to-state, and some states still have very good policies for PROTECTING individual property, so for American readers, learn the rules of your state - and where necessary, make sure to maintain regular "activity" with all bank accounts and safety deposit boxes.

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written by ASR, November 05, 2009

I took a look at the Safe Deposit Centres Ltd. website. They appear to have several features that make their storage facilities superior to those of the banks. Some of these features include video recordings and alarms, constantly monitored by on-site security personnel, and temperature controlled vaults. The buildings themselves are said to be specially constructed to withstand floods and fires, as well as, "Every form of modern criminal attack". Would I trust them with my valuables? Probably.

It was stated that only about 10% of the boxes seized were linked to crime. It seems to me that the other 90% or so of people involved simply wanted a more secure, convenient method of keeping their valuables safe. True, the raid uncovered some drugs, weapons and other proceeds of crime, but the thousands of innocent people caught in the crossfire might never recover their most precious belongings, either lost or stolen.

This type of action towards the public would certainly shake their faith in the police and courts alike. Without any trust in these systems, which are supposed to work for the people, individuals may try harder to keep their finances and precious belongings out of sight and off-the-record. I'd have to agree that this raid probably caused more harm than good.

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written by Jeff Nielson, November 04, 2009

Hi JsJ.

I read a piece on that, too. It's another example of why I can't figure out why many people are labeling the actions/policies of the U.K.(and the U.S.) as being "socialism". This sort of heavy-handed "law enforcement" is straight out of the "Facist's Handbook". Giving lots of money to rich bankers and trampling on individual rights and freedoms isn't like any "socialist" society I've ever seen.

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written by JsJ, November 04, 2009

#1) I consider this type of raid more likely in Europe than in North America, though I do not consider it impossible here.

#2) Allocated and insured gold, if seized by the government, would settle in cash. What's the point of that? Unless the insurance policy was written to pay out in actual bullion and not to settle in cash, then insurance does no good whatsoever. Yes, you got a settlement at the spot price when the government seized your gold, but don't you think the very act of seizing gold would cause the price to skyrocket -- at the very least, locally? Your insurer will probably not cover that price increase.

#3) Jewelry can be confiscated the same as bullion can, this story goes to show.

#4) The safest gold is gold they don't know that you have, but that you can prove you acquired legally.

#5) The judge who approved this warrant should be shot. Literally. Shot dead, executed. This is a criminal betrayal of Western jurisprudence.

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