My site, www.GaryNorth.com, has two dozen forums. This was posted yesterday on one of them.
“Approximately five weeks ago, I was notified by my bank in Geneva that they would no longer be providing private banking services to clients in the United States and Canada. After looking at the options for the liquidation of a portfolio that consisted of about 80% physical gold bullion, I made the request to take physical possession. I have certificates for each bar purchased over a period of two years but was told this morning that they would not permit me to take physical delivery. I had previously been assured that physical delivery was possible but since they have decided to close out these accounts, my previous representative has left the bank. This is a banking institution is very familiar with international clients and physical gold investments.
“Although this is a poor time to liquidate a gold position, I will take it as an opportunity that I may someday be thankful for, to divest myself of all holdings in the banking system and also to reduce exposure to Europe. It is apparent that if this has become an accepted practice in a relatively stable time such as this, there is small chance that anyone will see physical delivery as conditions become more strained.”
He is being forced to sell his gold. This will create a taxable event if he bought it lower than the price that prevails when he sells it.
This is not the first time this has been reported. Jim Sinclair a week ago reported a similar move by a Swiss bank. You can read about this here.
The Swiss are buckling to U.S. pressure.
One alternative is to hold gold bullion in storage with a storage firm, such as GoldMoney or BullionVault. These are not banks.
The other approach is to honor Max Blumert’s law: “Buy the best. Pay cash. Take delivery.” He was the father of Burt Blumert, the founder of Camino Coin Company.