On April 11th, the CME and England’s Royal Mint announced that they were testing a blockchain-based platform for trading gold. The product to be traded is a new crypto-coin called, Royal Mint Gold (“RMG”). The token will be issued by the Royal Mint and will represent the digitized version of 1 gram of gold. The gold will be stored in the Royal Mint’s vaults.
This news announcement was surprisingly overlooked by the alternative media, except for Rory Hall at his Daily Coin website: CryptoGold and Thieving Bankers. However, the fact that the CME is involved should have set off the smoke alarms throughout at least the segment of the alternative that seeks to shine the light of truth on precious metals trading and ownership. This is because the concept of a “new alternative way to trade gold” is an extension of the “fractional gold and silver bullion market” that is driven by the paper derivative precious metals products traded on the Comex and the LBMA.
The truth is that this new “blockchain-based” technology is nothing more than a mechanism to divert investor money away from taking delivery of actual physical gold and silver in the form of Royal Mint bullion coins and LBMA bars, thereby removing the availability of physical gold and silver that can be used for hypothecation. Furthermore, the new product is an extension of the institutional-level fractional bullion system that utilizes Comex/LBMA paper gold and silver contracts in order to fabricate the illusion that the buyers of those contracts have purchased legal ownership the underlying bullion bars. Below is an excerpt from the Royal Mint’s website which promotes the new concept:
RMG®, an innovative new product launching in 2017, will provide the investment performance of the London Gold Market with the transparency of an exchange-traded security. RMG holders will negate counterparty risk, by having direct ownership of physical gold bullion where each RMG represents ownership and full title to 1g of physical gold bullion held in the form of fully allocated, LBMA Good Delivery Bars within The Royal Mint’s vault.
We believe these features, coupled with the guarantee of zero ongoing annual management fees and free storage, represents one of the best and cost-effective ways to invest in physical gold today. At any time RMG can be redeemed for physical gold bars and coins produced by The Royal Mint, with physical delivery.
The basic tenet of the RMG is that “counter-party” risk is eliminated because the buyers are purchasing direct ownership of gold that is stored in the Royal Mint’s vault. However, the idea of custodial possession – where the owner trusts the safe-keeping of an asset with
a third party – is in and of itself a primary source of counter-party risk. The first law of ownership of gold is that you do not fully “own” it until it is in your personal possession. Just ask the German Government.
The second myth in that statement above by the Royal Mint is the gold is held in the form of fully allocated LBMA Good Delivery Bars (in the Mint’s vault). This is GLD’s holy grail claim as well. The problem, again, is accountability. Until gold custodian’s are willing undergo a fully independent 3rd party audit at any time and without advance notice, it’s silly to assume that these custodians possess full, legal title to the gold they are reporting to be in their vaults. The poster-child example is the U.S. Federal Reserve, which has spent millions to avoid the prospect of a legally enforced audit of its gold vaults by a third party, fully independent auditor.
The Shadow of Truth discusses this new mechanism of deceit in today’s podcast and we explain why it’s riddled with counter-party risk and the potential for fraud on the same scale as Comex and LBMA gold and silver derivative products.
If the people fall for this, the latest Deep State precious metals fraud, they deserve to have their asses handed to them. This is right out of, “But WAIT, there’s MORE,” because we have this: “Zero ongoing management fees and free storage???” So let’s get this straight: England’s Royal Mint / Government cares so very, very much about the financial well-being of the citizens that it is going to completely reverse its role: instead of treating the people like serf bitches, it is going to allow the people to treat IT like a serf bitch. The English Royal Mint / Government is voluntarily going to become the people’s bitch by offering free services to the unwashed Deplorables! To those who have the GALL to convert their fiat paper into real money! Doesn’t this warm your heart, people?! We the People are making such extraordinary progress! According to this offer, the government now wants to work for us and be our bitch! Wow. Does any of this make any kind of sense, people??? Of course this makes no sense. The Government is going to reward Deplorables who reject their phony fiat toilet paper and buy gold??? What kind of total desperation leads them to make a “We the Government want to be the People’s Bitch” offer like this??? Could it BE that their 40 year paper precious metals price manipulation SCREW JOB is blowing up in their faces??? Could it BE that the Indians and Chinese are buying up all the gold, and that the LBMA and Comex are completely desperate to prevent westerners from buying REAL physical, as opposed to FAKE physical gold, because they’re running out of it, can’t source any more it, and cannot, under any circumstances handle additional market demand for it from the people??? This offer is so transparently desperate, phony and false that I’m actually embarrassed for the cheats at the Royal Mint who are out hustling it. Here is what we carefully need to watch: what dealers, etc. promote this scheme to the retail market? Any company that partners with the Royal Mint in promoting this scam is obviously the enemy, and people need to walk away from such scamsters forevermore. Any company that hustles this fraud is a Deep State collaborator, pure and simple. Sheeeeesh. Talk about an insult to the People’s intelligence. And an insult to our patience with these disgusting and arrogant liars, schemers and kleptocrats.
Devil’s advocate question:
What’s the difference between this & GoldMoney (previously BitGold) advertised on this website? I myself have personally have some GoldMoney accounts, however I would never put any major life savings in their control.
Question still remains however: If CME can’t be trusted with blockchain gold, why can GoldMoney be trusted with blockchain gold?
This looks like it came out of the India playbook.
You know, “give us your gold and we will store it
for you. Issue a interest certificate and you can have
your gold back in five years”. Let me have some of
what your smoking so I can see it too. The majority
of the Indian population did not fall for that bullshit.
I hope anyone considering this latest CME scam is at
least half as smart as the Indian population.
GKC, that’s what I thought when I first read it. I’m sure it’s a BIS directive. BIS to CME/England: “Cannonball”
They will have brokers to sell this BS as long as they can make a commission, telling clients this is the best thing [hedge, etc.] since sliced bread. And the product will be lapped up off the floor like a starving dog would do