MF Global, the international big bank affiliated with Jon Corzine, is giving some interesting input into gold investing these days. Posted by James Randolph on November 16, 2011
The Bankruptcy of MF Global and the Gold Market
November 16, 2011 – MF Global, the international big bank affiliated with Jon Corzine, is giving some interesting input into gold investing these days. After a Commodity Futures Trading Commission ruling made it legal for the bank to use customer funds for investments—and to collect any earnings in profits or interest from those investments—a truly horrendous $63 billion bet on European sovereign debt has brought the institution to its knees.
MF Global should never have been gambling with its customers’ money to begin with, but if it was going to gamble anyway it probably should have been a little more conservative in its risk. The entire episode is illustrative of bankers trending towards more and more desperate acts in the chase of ever and ever diminishing returns. Why should bank customers who have had active accounts for years be wondering whether they will even recoup the full value of their accounts?
Gerald Celente, a well-known gold advocate and commentator on several network news programs, received a call last Monday explaining that his six digit account was now in the hands of a “trustee.” Celente, Director of the Trends Research Institute and Publisher of its journal, has been trading gold since 1978 and was accumulating futures contracts with intent to take delivery less than a month from now.
Bart Chilton, a Democratic commissioner at the CFTC, is now openly stating that “something nefarious” occurred at MF Global. With close to $600 million of customer money unaccounted for, one would have to agree with him.
Celente often compares the bankers to junkies, with an insatiable desire for money that only grows with each and every dollar. The tragically standard practice of bankers taking greater and greater chances in the pursuit of ever diminishing returns is accurately parallel to the behavior of junkies.
The entire story is a case in point of why purchasing gold makes the most sense now and why taking physical ownership of the gold is the best method of protecting one’s savings, one’s value, and oneself from the nefarious, sanctioned activity of bankers. The gold market is getting this message quite clearly as well. If a customer’s money was not safe with Jon Corzine’s MF Global, why should it be safe anywhere but in gold?
Senior Staff Writer – Certified Gold Exchange