Not All Physical Gold & Silver Held as Custodial or 'Allocated' for Safekeeping May Prove Not to be So!
Submitted by Charleston Voice on Thu, 05/31/2012 - 16:25More Behind-The-Scenes Positive Prospects For Higher Gold Prices
By Patrick A Heller on May 31, 2012 2:03 PM
While a lot of attention is focused on European debt problems and the US elections, there are a few developments in the works which bode well for higher gold prices in the future.
These developments have nothing to do with technical trading signals or standard supply and demand curves. Instead they point out that demand for physical gold could be much higher in the future or that supplies could be lower.
First, a brokerage customer purchased four kilogram-size gold bars in 2009. The buyer was given the serial numbers of the bars and was told by the brokerage firm that his bars were held in “allocated storage.” Allocated storage is specific merchandise stored with the customer’s name on it. It is theoretically titled in the name of the owner of the metal and not in the name of the brokerage or the storage company. Therefore, the metal is not an asset subject to outside claims against the brokerage or storage company.
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