Physical as collateral - but not ETFs

[joe_momma]

I think no one on the board needs yet another reason to stay away from Metal ETFs - but....

JP Morgan announced today that from now on they will accept physical gold bullion as collateral. This is a sign of gold’s further remonetisation in the global financial and monetary system. It may signal that JP Morgan is having difficulty in securing gold bullion in volume. JP Morgan is the custodian for many of the gold and silver exchange traded funds. They will not accept ETF trust gold as collateral.


http://www.zerohedge.com/article/morning-gold-fixing-jp-morgan-accepts-gold-bullion-collateral-%E2%80%93-silver-backwardation-lead-sh

[sirgonzo420]

They will not accept ETF trust gold as collateral.


Gee... I wonder why not?


:D

[Ragnarok]

But... will you get your gold back at the end of the loan term? ;D

And while you are waiting, is there any guarantee your gold won't end up on any ETF custodial books for the term?

...what, me cynical? :D
R.

[ximmy]

yeah, you will be repaid in newly printed frn's...

[osoab]

Looks like someone else thinks the barbaric relic is good for collateral.

Morning Gold Fixing: Gold Bullion Considered As Collateral By International Clearing House – LCH.Clearnet (http://www.zerohedge.com/article/morning-gold-fixing-gold-bullion-considered-collateral-international-clearing-house-%E2%80%93-lchcle)

[Walter Mitty]

I thought it was illegal to write Gold clauses into contracts?
So I am a little confused.

[osoab]

Listening to Bob Chapman on RBN this evening. He put the reasoning for accepting gold as collateral by JPM was to help in the gold suppression scheme and to possibly replenish gold stocks held by GLD or the Treasury.

[Twisted Titan]

They are doing whatever they can to get as much PHYSICAL gold under there direct control so when the hammer falls they can refund you your Money in radiply depreciating FRN's

And you still have to pay the taxes and fees to get your check.

[Neuro]

Hmmm... They will not accept their own gold ETF as collateral, most likely because they know their ETF doesn't have any gold backing it... I may consider investing in one of their Gold ETF's if they give me real gold as collateral... Fair is fair!