Royal Canadian Mint Fears ‘Run’ On Gold

AFP reports that mounties to probe Canada's missing gold.

(emphasis mine) [my comment]

Mounties to probe Canada's missing gold
June 10, 2009

OTTAWA (AFP) — The Canadian government is investigating the disappearance of an amount of gold and precious metals from the Royal Canadian Mint and has asked the federal police to probe a possible heist.

Minister of State for Transport Rob Merrifield said Tuesday he called in the Royal Canadian Mounted Police (RCMP) to conduct a "full investigation."

External auditors had been ordered to investigate a discrepancy between the mint's 2008 financial accounting of its precious metal holdings and its actual stockpile. Many had expected the audit would point to sloppy bookkeeping.

The investigation was ordered after mint officials said the audit would not be able to reconcile the discrepancy.

"As soon as they instructed me this morning that it looked like the audit wasn't going to tell us everything we need to know and be able to rectify the numbers, I thought it was important to bring the RCMP in," Merrifield said.

But he declined to say how much gold, silver or other precious metals were unaccounted for.

Opposition parties, however, criticized the government for the mint's possible loss of tens of millions of dollars worth of gold.

"How is it conceivable that we can lose tens of millions of dollars in gold from the Royal Canadian Mint, and nobody notices until they finally start calling the accountants,"
said opposition New Democrat MP Thomas Mulcair.

"If they can't even hold onto the gold in the Mint, what are they capable of doing?" he said, adding: "It now appears that it's gone beyond bad accounting."

Contrarian Profits reports that the Canadian Mint's present problems are not unique.

In other gold news, I'm one of many hundreds [if not thousands] on Jim Sinclair's mailing list. Yesterday he sent out an e-mail regarding the problems of missing gold and silver at the Royal Canadian Mint in Ottawa. If you remember, I ran that story yesterday in this column. Mr. Sinclair had the following comment on this issue over at his website" I have heard rumors for some time, but today it was confirmed to me, that the Canadian Mint's present problems are not unique and that other depositories (vaults) have had an army of auditors descend on them in the last two weeks. Some of these depositories have names so famous that it would scare the hell out of you. The repercussions would be drastic if they turn out to be troubled...I suggest to you now that you take delivery of all gold [and silver - Ed] held in vaults and depositories on your behalf, but this time even from the most prestigious."

Is all of the above true? I sure as hell hope not...but would not be surprised if it was. I've heard some names mentioned on the Internet...but until confirmed...I will not utter them here. BUT, as I [and many others] have said over the years, do NOT have one thin dime in paper gold or silver. I consider GLD and SLV to be is every pool account on the planet. In the end, only those who have physical metal in hand...or in gold or silver funds with real metal behind them...will survive. Why take the chance...and needless to say, I'll keep you posted on developments.

The Ottawa Citizen reports that Royal Canadian Mint fears 'run' on gold.

Your gold is safe with us, mint tells clients
Reassurance comes amid fears there will be a 'run' on holdings
By Ian MacLeod, The Ottawa Citizen
June 13, 2009

To halt a possible "run" on the gold it safeguards for private businesses, the Royal Canadian Mint is reassuring customers their deposits are fully accounted for and in secure vaults as the investigation continues into as much as $20 million in lost precious metals.

Since the scandal broke last week, some precious metals market advisers [Jim Sinclair, Ed Steer, me, etc...] have been trying to instigate "some kind of a run" on the custodial accounts of the Ottawa mint and other mints around the world, said Jon Nadler, senior metals market analyst with Montreal-based Kitco, one of the world's leading precious metals bullion dealers.

"I cannot name names, but I've seen a number of forums and blogs and newsletter alerts from people who claim to be market analysts and saying, 'You should take delivery of everything that's in storage, no matter who you keep it with because of things like this'," Nadler said in an interview Friday, calling the tactic "pathetic." [I sense desperation]

The federal government this week ordered the mint to call for an RCMP criminal probe, after a four-month external audit was unable to reconcile the unaccounted-for gold and other precious metals at the mint's Sussex Drive headquarters. Mint insiders tell the Citizen it could amount to as much as $20 million.

The RCMP continues to review the request for an investigation. The audit findings are expected to be made public next week.

My reaction: Canada's missing gold is getting interesting.

1) The Canadian government is investigating the disappearance of tens of millions of dollars in gold from the Royal Canadian Mint.

2) The federal police has been asked to probe a possible heist, after mint officials said the audit would not be able to reconcile the discrepancy.

3) "It now appears that it's gone beyond bad accounting."

4) According to Jim Sinclair, the Canadian Mint's present problems are not unique and that other depositories (vaults) have had an army of auditors descend on them in the last two weeks.

5) Jim Sinclair suggest to you now that you take delivery of all gold held in vaults and depositories on your behalf, even from the most prestigious.

6) The Royal Canadian Mint is reassuring customers their deposits are fully secure and accounted for, in an effort to halt this possible "run" on its gold.

7) Since the scandal broke last week, some precious metals marke t advisers have been trying to instigate "some kind of a run" on the custodial accounts of the Ottawa mint and other mints around the world

8) Mint insiders tell the Citizen it could amount to as much as $20 million.

Conclusion: Since I first reported on the case of Canada's missing gold, things have become more serious:

1) Before it was "Several million dollars", now it is "tens of millions of dollars"

2) Before it was an audit, now it is a criminal investigation.

3) Before it was just Canada's mint, now "other depositories (vaults) have had an army of auditors descend on them in the last two weeks"

4) Before it was a simple accounting 'discrepancy', now the Royal Canadian Mint fears a 'run' on its gold

Is this the beginning of another Gold Rush/Panic? I will closely be following these developments.

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27 Responses to Royal Canadian Mint Fears ‘Run’ On Gold

  1. Anonymous says:

    a run on the gold started much earlier w/dubai and germany requested their gold be repatriated.

    why should everyone else think theirs is any safer in someone else's hands?


  2. Jeff Burton says:

    What is the deal with Nadler? For being in the gold business, he is one of the most negative guys out there on gold.

  3. Jimmy says:

    It seems that the criminals with Royal Canadian Mint are helping gold bugs destroying gold manipulation by JP Morgan Chase and HSBC. Good job, our friends with Royal Canadian Mint!

  4. Jimmy says:

    Jeff Burton,

    I have read several comments on Nadler. He works for, a major bullion dealer. He has been negative on hold with intention to hold gold price down so that kitco can sell more gold.

    I have never read anything from him for a long time. His mouth is not worth more than shit.

  5. Anonymous says:

    there shouldn't be any fear of a gold run because the mint has all the gold in their vault, unlike retail banks....right...right?

  6. OperationNorthwoods says:


    Some in the gold world are working for the other side, and this includes companies, not just individuals. Similarly, many apparent enemies of the system are on the payroll of various nefarious groups, such as CIA front foundations.

  7. Anonymous says:

    Does anyone else find Nadler really annoying? He comes off as a gold hater.

  8. Anonymous says:

    Hm. So Sinclair has "inside information" that the gold isn't safe in the hands of the depositories, and therefore suggests we all make a run on the depositories - driving the price of gold to stratospheric levels, if we all follow his advice.

    Hm. Cui bono?

  9. Anonymous says:

    Definitely it will cause a run. The banks' safe boxes are not secure as well if the banks close down on any reasons. Where to put the gold safely? The US might announce that individual owning of gold is illegal to help you with your storage problem. They had done this before in 1971. So, that is why all the Westerns are just wearing 9K, 18K gold jewelry instead of fine gold like the Indians and Asians. We have been fooled for decades……I remember that Fed has been always telling you gold is less worth than iron until nowadays, haha. The bankers just want you to believe their toilet paper which can be print infinitively and gain the interest from the debt and print process.

  10. Jimmy says:

    I just don't understand why hires Nadler. He has almost always been gold negative. My understanding is that he tries to hold gold prices down so that kitco could sell more gold. However, if people do believe him and think of gold as worthless, who will buy gold then?

  11. Edwardo says:

    The paper, anti-gold manipulators must be getting very nervous and sweaty about now. Having said that, Jim Sinclair always talks his book. He is to gold what Bill Gross is to bonds. So, who to believe? None of them. Believe in the reality of gold and silver's relative value/fundamentals compared to FRNs. That is indisputable.

    And believe in the PTBs growing inability to continue the paper gold manipulation. The fraud across the entire financial universe is all encompassing and is in the process of being completely exposed. So hold your gold and secure your silver.

  12. Jimmy says:

    The US government confiscated gold from Americans in 1933. Has the American govrenment ever confiscated silver? If not, then is silver a better bet against confiscation?

  13. Numonic says:

    Possession is 9/10ths of the law.

    More people accept this truth when credit collapses, and it's collapsing. Examines: Physical Gold & Silver Bullion Delivery;=http%3A%2F%2Fwww%2Eruntogold%2Ecom%2F&feature;=player_embedded

    I'd like to add and make it known that the spot price of gold/silver isn't the true price of physical gold and silver. The spot price of gold and silver is measured by how well the fiat paper currency is able to stop defaults in the paper gold/silver market. Physical gold/silver is not what has been controlling the rise and fall of the price of spot gold/silver. The availability of the fiat paper currency is what has been controlling the rise and fall of the price of spot gold/silver. What you have been witnessing in the paper spot gold/silver market is the Federal Reserve Note(amoung other paper currencies) playing the role of physical gold/silver. The more available the paper currency was the more available the physical gold/silver looked. So if the banks flooded the gold/silver market with massive amounts of paper currency, it was as if they flooded the market with massive amounts of physical gold/silver. This seems as the best solution to keep the price of gold/silver down because printing the currency is so easy, much easier than finding, digging up, refining and minting the physical gold/silver of the same amount. Some people think this is unstopable but they don't realize that by creating so much debt(even for the seemingly easy to produce FRNs), you infact make what was once easy to produce, NOW difficult to produce. You can only print so many $100 bills at a time. The printing press is running at max speed to print enough to stop defaults from all parts of this country in order to keep the credit/banking system from collapsing.

  14. Numonic says:

    When the ponzi scheme(aka credit) was running well, it was just the simple job of borrowing the money from one place to pay another place. But that has ended because the lenders are insolvent and don't have the money to lend. It's not that they don't want to lend, it's funny how people use this halting of lending as if the lenders have awoken from some sleep and came to realize that they were lending recklessly. That is NOT what happened. The lenders want to lend and they would, if they were solvent enough to lend. First of all ask yourself this question: Did the monetary base shoot way up before or after the credit crunch started? The answer is after. So this halt in lending isn't a result of lenders fearing inflation due to massive money printing because the massive money printing came after the credit crunch started. The credit crunch was and still is involuntary.(granted the massive money printing may be playing a part in in keeping those who do have money to lend(which is the minority) from lending but only as far as how ineffective all this printing is to making these banks solvent, not of the money printing thawing the credit markets and spewing all these printed dollars in to the economy). Banks are still insolvent even after all the money printing that has been going on. That massive money that was printed and that massive increase in the monetary base is nothing compared to the amount that NEEDS to be printed to make these banks solvent again. Just because a trillion dollars sounds like a lot to you, it's nothing compared to the over 1 quadrillion dollars that is deleveraging. And that's what people refuse to accept. It's hard enough to come to the realization of a trillion dollars that the mention of a quadrillion dollars sounds like a made up number. But point is the massive amount of defaults due to this 1 quadrillion dollar deleveraging would collapse the credit/banking system and so the govt. is doing all it can to stop the defaults and every Federal Reserve Note is being called in to plug holes/stop defaults. The printing press is the strongest tool for this job since it can provide FRNs so quickly and easily but even the printing press can't print fast enough to plug all the holes, and when the printing press is focused on one hole, another hole grows larger and larger and more holes are appearing every minute. Because of this, borrowing gets harder and more costly. The govt. doesn't want borrowing to get harder and more costly because it knows if borrowing gets more costly, companies will have to raise their prices in order meet the rising borrowing costs and if these higher prices are exposed this exposes the decreased value of the dollar. The other reason why the govt. doesn't want borrowing costs to rise is because everyone knows that the govt. is doing everything in their power to keep that from happening, if the govt. fails at keeping borrowing costs from rising, people will see that the govt. has lost control of this credit contraction and see that keeping money in someone else's possession(even the govt.'s) is risky and more and more people will become hoarders, and they won't be hoarding dollars that will be decreasing in value like I just said through rising borrowing costs, people will be hoarding things that last and increase in value(i.e. gold/silver, etc.) Point is they don't want people hoarding as hoarding is the opposite of banking. Unfortunately for them they have no control of the credit contraction and people will be forced to become hoarders or watch their savings get wiped out by either defaults or rising prices which will both be happening at the same time. Yes, you heard it right, massive defaults and massive rising prices will be happening at the same time. We are witnessing the beginning of it today as foreclosures and defaults are rising as prices of food and gas are rising. This will get worse for the rest of the year and up until the total collapse.

  15. Jimmy says:

    The premiums of physical gold and silver over spot were very low in the last 6 weeks (as low as 0.49 USD per oz for 100 oz silver bars). That means to me that physical supply was increasing and/or physical demand was faling. That does not explain why the spot increased a lot in the last 6 weeks (especailly for silver). Any explanation?

  16. Numonic says:

    Jimmy, That's because like I said the rise and fall of the spot price has less to do with the physical supply of gold/silver and more to do with the available supply of the paper currency(Federal Reserve Notes). Physical gold/silver is not what is used to stop defaults in the gold/silver market, the paper currency is. If for the past decades physical gold/silver was what was needed to stop defaults, spot price of gold/silver would be over 100 times higher than it is right now because there would be massive defaults/failures to deliver the metal. And that's not counting how that rise in price would drive more and more people to physical gold/silver which would cause the price to be much higher. Why did premiums take a dip?, probably because more physical supply did hit the market. It's like 2 different markets but the physical dealers are trying to stay in the realm of the spot price while pricing for physical supply a little. But 95% of their pricing is based on the spot price while the other 5% is based on their personal physical supply. So the physical market can move opposite to the spot market. It's like when spot price was really low while dealers could not get their hands on any physical metal.

    That's my best explanation.

  17. Anonymous says:

    No one would notice if any gold was missing from Fort Knox as no objective or independent entity can view what is there. Maybe there is no unleased gold in Fort Knox; maybe the USA sold out when the Brown Bottom occurred. ??

  18. Anonymous says:

    The deal with Jon Nadler is that he works for Kitco, a company that happens to be short a tremendous amount of Gold and Silver by selling shares in their "Pool Accounts" and and not buying the metal to back it up. They depend on keeping a relatively small amount of metal on hand and buying on the dips that JP Morgan and Goldman Sachs have been providing for the Federal Reserve. Kitco makes their money on the spread between what is paid by their customers and what they have to pay to deliver the bullion to their customers. By selling "Pool Account" shares, they are in effect short selling and scalping everyone doing business with them, since Kitco then gets free use of their customers money and don't have to pay storage fees for the metals. The customer has this warm fuzzy feeling that they are protected with precious metals in their name when they actually have nothing but a piece of worthless paper. Yes, it is Fraud, but as was admitted in open court recently it is "common industry practice". According to the Bank of International Settlements, as of Dec 2008 there is roughly $111 billion worth of "paper" Silver outstanding and $395 billion in "paper" Gold. That is the equivalent of 7,655,000,000 Oz. of silver and 423,365,000 Oz. of gold. Nadler is trying his best to help in the Gold/Silver price suppression scheme so that Kitco can cover their shorts in the PM Market.
    If you think about it, dealers are in deep sh*t if everyone decides they want their silver bullion in hand, because all the physical silver is already in someones hands that have paid cash for it. Most of those people will be holding that silver for much higher prices than it is currently selling for before they will turn it loose.
    7.6 billion ounces of silver is a lot to try to come up with considering the 2008 global mine production of silver is only 681 million oz. according to the Silver Institute. At that rate it will take 11.24 years to produce. That is if everyone else completely stops using silver in manufacturing for the next decade, which is not likely.
    Gold is in a similar situation since the worlds Central Bank leased much of their gold inventories to bullion banks like JP Morgan, HSBC, etc., who them sold it on the open market and used the money elsewhere. Most of the gold bullion the Central Banks banks say they have doesn't exist or is promised to a party. I would imagine Ft. Knox is mostly stuffed with IOU's from Central Banks for leased gold used up during the last 20 years propping up the value of the US Dollar.
    Whatever you do, don't own "paper" gold or silver under any circumstance. Have it in your hot little hands or you will be left with nothing.

  19. Anonymous says:

    Read GOLD WARRIORS by the Seagraves, then u will get an idea of how much gold is really out there.


  20. Anonymous says:

    Nadler belongs under a circus tent. Avoid dealing with Kitco, and support your local/state Bullion Dealers. Buy physical and take ownership of it yourself, (do not be a lazy slob and support the various paper games that you have no control over).

  21. Jimmy says:

    I have dealt with, and is the best. Avoid as the delivery time is VER LONG. Generally speaking, it has been pleasant with kitco. I had PM in their pool account. When I read the difference between pool and allocated accounts, I took physical delivery.

    Attention: PM buyer in and around NYC: It is very convenient to buy 1000 oz silver bars from kitco (only 0.30 USD per oz over spot) and pick up in HSBC NY (1W 39th Street). There is no insurance and shipping fee. I don't see the need to go to Comex and take so much trouble get silver.

  22. Numonic says:

    Great day to buy silver. I got 90% silver dimes for $.75/oz over spot at the coin shop, and he has plenty of 90% silver. I think that's a heck of a deal.

  23. Jimmy says:


    The premiums for 1 oz silver rounds are as low as 0.89 USD per oz over spot. A few days ago, they were as low as 0.49 over spot. Please check frequently for great deals.

    I bought several 1000 oz silver bars for very long term savings (not investments). The premium was 0.30 over spot.

    Just read a TA article indicating that the bottom in PM prices is coming.

  24. Numonic says:

    Jimmy, on Apmex, 90% silver dimes are selling for more than what I paid for them, selling for more than $6 over spot. I got a mix of Mercury and Roosevelt dimes for $53/50 coin roll, at the time I bought it: $. 75 over spot. Apmex is sold out of 90% Mercury dime bags. I'm in hyperinflation survival mode and I'm only buying 90% silver dimes unless there aren't any then I'll get other 90% silver or the 1oz rounds. I also don't like ordering online, I'd rather walk in person and meet the dealer, plus dealing in person gives me a chance to look at the silver before purchasing it, where as ordering online you're not sure what grade of silver you're getting and even if they tell you the grade, if they make a mistake, it's allot of trouble and risk to ship it back where as in the shop you can just ask to exchange the coin. So i think i got a good deal even though it was a 25 mile drive to get it.

  25. Anonymous says:

    Our local coin store has been selling $100 face value half dollars ( 1964 and before) for $1050 (14.7/oz) for the past months. The owner does not change price often. I am not sure what advantages junk silver has over silver bars/coins/rounds. Maybe in smaller deniminations?

  26. timw says:

    I'm trying to understand why there's a mania happening over $20 million worth of gold missing at one of the largest gold vaults in the world. SURE, it's definitely not good to have this much gold stolen or be the result of horrible bookkeeping. But this would compare to an average person losing 20 dollars from their wallet on payday. Secondly, I'm sure heads are rolling at the Canadian Mint since this happended and, thus, now probably the safest place to store your gold / silver. Think you're safe storing your gold in the U.S.? Think again. Obama prides himself as the "New FDR" and we all know what FDR did in 1933. It may or may not happen again. But if gold IS confiscated, you'll be jailed if you try to ship it out of the country to sell. I'll take my chances storing my gold and silver at a vault like The Canadian Mint or The Perth Mint.

  27. Anonymous says:

    > Jimmy said... The US government confiscated gold from Americans in 1933.

    Actually the government forced people to sell their gold to the Fed at a fixed price. It seems to me that a similar effect could be achieved in the long term by holding down the price of gold and in the short term by causing the price to crash. When the price of gold is high it could be seen as a way to confiscate dollars from those who insist on owning gold.

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