…that starts with an article.
Deutsche Bank Refuses Delivery Of Physical Gold Upon Demand – Zero Hedge
But first, what is Xetra-Gold?
According to its website, the publicly traded company “provides investors with an efficient instrument to participate in the performance of the gold market. Xetra-Gold’s combination of features – cost-efficient trading and the right for physical delivery of gold – makes it an attractive product.”
But what is most notable, is that, as noted above, Xetra-Gold investors are entitled to the delivery of the certified amount of physical gold at any time, and adds that “since the introduction of Xetra-Gold in 2007, investors have exercised this right 900 times, with a total of 4.5 tons of gold delivered.“
However, something appears to have changed.
As Oliver Baron reports, those who ask for gold delivery at this moment, “could encounter difficulties.” The reason is that according to Baron, a reader of GodmodeTrader “sought physical delivery of his holdings of Xetra-Gold. For this he approached, as instructed by the German Borse document, his principal bank, Deutsche Bank.”
At that point then he encountered a big surprise: the Deutsche Bank account executive informed the investor that “the service”, is no longer offered, namely exercising physical delivery at Xetra-Gold, for “reasons of business policy” and therefore the order form provided by Clearstream Banking AG for exercising Xetra-gold is no longer available.
Baron writes that since Deutsche Bank is no longer serving the physical exercising of delivery request of Xetra-Gold is remarkable, as Deutsche Bank is the “designated sponsor” as well as fiscal, principal and redemption agent of Xetra-Goldaccording to its prospectus, and as the explainer of how to exercise physical delivery also reveals. Even if one is a customer of another bank, Xetra-Gold should – at least on paper- guarantee delivery by way of Deutsche Bank, as the Deutsche Borse Commodities GmbH explains in its “process description for exercising units“
Bottom line: Deutsche Bank is the 7th biggest bank in the world, and the 3rd largest bank in the Western world. It backed a program where investors could invest in gold and actually take physical possession of that gold if they so desired, but without warning anyone who has invested in gold via Deutsche Bank/Xetra can suddenly no longer take possession. This is very disturbing in that it’s another brush stroke in a very disturbing picture.
Last week, Germany warned it’s citizens to “stockpile food & water” and have at least a ten day supply. Later in the week, the Czech Republic told it’s citizens to “Prepare for the worst“. Furthermore, the information I have been hearing is extremely negative. I had initially thought we had until at least 2017 before the Crash. Now I am hearing that there’s a significant chance it will be initiated this year.
If/when the Crash happens, Deutsche Bank will most likely be the first casualty. And then the dominos will begin to fall. Citibank will most likely be the first American bank to fail and then the collapse will begin in earnest.
I do not want to scare you. I don’t want to needlessly create panic, even in a single soul. But you must be prepared to be self-sufficient for at least three weeks if it becomes necessary.
There is a positive in all this. I was told verbatim: “If/when this happens, do not give in to fear. This will be a difficult few weeks but it must occur for things to be fixed. This will be a good thing after a difficult several weeks.”
Hope for the best. Prepare for the worst. Above all, do not give in to hate and fear.