Is the London Bullion Market going to implode

masonic

plumb1_2 said:

Aretnap said:

That was understandable, because I was eight years old. However, the fact that this is not actually how the banking system works, and that the bank does not actually have your cash sitting in a safe, shouldn't really come as a surprise to anybody who is over the age of eight.

Exactly the Silver the note holders purchased is not in the vaults. 

Incorrect. You are conflating ETC/ETN's with money. Currency hasn't been backed by precious metals for decades. High street banks don't issue ETC's. Notes, as in ETN's aren't commonly used for commodities investments, but are being issued for cryptocurrency.

The major ETC fund houses whose funds are physically backed are subject to independent audit. I suggest you go and check the reports on your own holdings if you are concerned, rather than engaging in a disinformation campaign here. Or if you can't be bothered to do that, sell all your holdings so you don't need to worry when the rest of the world catches up with your superior knowledge on the matter.

QrizB

masonic said:

I'm going to guess the answer to the question in the thread title is no.

Betteridge's Law of Headlines also applies to forum threads, more often than not.

https://en.wikipedia.org/wiki/Betteridge's_law_of_headlines

plumb1_2

masonic said:

plumb1_2 said:

Aretnap said:

That was understandable, because I was eight years old. However, the fact that this is not actually how the banking system works, and that the bank does not actually have your cash sitting in a safe, shouldn't really come as a surprise to anybody who is over the age of eight.

Exactly the Silver the note holders purchased is not in the vaults. 

Incorrect. You are conflating ETC/ETN's with money. Currency hasn't been backed by precious metals for decades. High street banks don't issue ETC's. Notes, as in ETN's aren't commonly used for commodities investments, but are being issued for cryptocurrency.

The major ETC fund houses whose funds are physically backed are subject to independent audit. I suggest you go and check the reports on your own holdings if you are concerned, rather than engaging in a disinformation campaign here. Or if you can't be bothered to do that, sell all your holdings so you don't need to worry when the rest of the world catches up with your superior knowledge on the matter.

Yes I am aware high st banks don’t issue notes.
am not concerned about my own holdings as they are physically in my possession ( rented sd box )
And what campaign is it your accusing me of, I mearly asked a question, and I have twice asked for the thread to be closed, so hardly a campaign.
And there’s no need for personal abuse 
Yes physically backed ETC are supposed to be backed up by physical bullion, but try asking for it, you won’t receive it. Which beggars the question why Not?

Aretnap

plumb1_2 said:

masonic said:

plumb1_2 said:

Aretnap said:

That was understandable, because I was eight years old. However, the fact that this is not actually how the banking system works, and that the bank does not actually have your cash sitting in a safe, shouldn't really come as a surprise to anybody who is over the age of eight.

Exactly the Silver the note holders purchased is not in the vaults. 

Incorrect. You are conflating ETC/ETN's with money. Currency hasn't been backed by precious metals for decades. High street banks don't issue ETC's. Notes, as in ETN's aren't commonly used for commodities investments, but are being issued for cryptocurrency.

The major ETC fund houses whose funds are physically backed are subject to independent audit. I suggest you go and check the reports on your own holdings if you are concerned, rather than engaging in a disinformation campaign here. Or if you can't be bothered to do that, sell all your holdings so you don't need to worry when the rest of the world catches up with your superior knowledge on the matter. 

Yes physically backed ETC are supposed to be backed up by physical bullion, but try asking for it, you won’t receive it. Which beggars the question why Not?

Large institutional investors in such ETCs are generally entitled to convert their holdings into physical bullion; indeed allowing them to do so provides an important mechanism for ensuring that the price of the fund accurately tracks the spot price without a significant premium or discount ever developing.

Joe Bloggs who owns a few hundred pounds worth of shares on the other hand isn't entitled to do that because.. frankly the fund managers have better things to do than run back and forth to the vault fetching trivially small amounts of bullion and shipping them around the country. If Mr Bloggs wants to convert his holding to physical bullion he can sell his shares (perhaps tomone of the said institutional investors) and buy physical bullion instead.

masonic

plumb1_2 said:

And what campaign is it your accusing me of, I mearly asked a question, and I have twice asked for the thread to be closed, so hardly a campaign.
And there’s no need for personal abuse 

You haven't merely asked a question. You've asked a question to which the clear answer is "no". Rather than accept that, you've ignored reasonable responses in order to repeat harmful disinformation.

A campaign is a series of instances where a particular narrative or message is driven.

You've received no personal abuse from me, and I think I've been very patient with you, but we are 4 pages in with multiple posters having rebutted the nonsense conspiracy theories, so it is clear that a more direct approach is warranted.

plumb1_2 said:

Yes physically backed ETC are supposed to be backed up by physical bullion, but try asking for it, you won’t receive it. Which beggars the question why Not?

Because that's not how investment funds work. You can buy or sell shares in the fund, but you cannot take physical possession of the underlying assets, whether that's silver, share certificates, or bricks from commercial property held in the portfolio. The deal is that you can sell your shares when you want out of the fund. Furthermore, the vast majority of people hold these investments through a broker in a collective nominee account, so the shares are held in trust by the provider and won't be directly in the beneficial owner's name.

plumb1_2 said:.
am not concerned about my own holdings as they are physically in my possession ( rented sd box )

You expressed concern about it in two earlier posts, but if as you now say you have no ETC holdings, then it is unclear why.

If you truly believe what you have been posting, then there may be options to short the shares of the major asset managers offering these funds, perhaps even the funds themselves. But I wouldn't if I were you, because it is patently untrue.

plumb1_2

Let that be the end of the discussion.
Merry Christmas to all.

HedgehogRulez

plumb1_2 said:

Let that be the end of the discussion.
Merry Christmas to all.

Not for you to dictate when the discussion ends!

aroominyork

Surely the bullion market could not attract such credible backers if there was a risk of it imploding.

flaneurs_lobster

Gold is clearly an excellent investment for Mr F since Direct Bullion pay him £400,000 a year, for four hours work a month, punting gold. 

The story from the Guardian that has that (unattributed) picture.

https://www.theguardian.com/politics/2025/dec/24/farage-criticised-for-direct-bullion-job-promoting-physical-gold-as-pension-investment

cloud_dog

HedgehogRulez said:

plumb1_2 said:

Let that be the end of the discussion.
Merry Christmas to all.

Not for you to dictate when the discussion ends!

But we haven't got into the gold / silver ratio discussion