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 JSMineset.com..." 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 paper...as 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
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.