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Old 04.01.2013, 18:00
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marton marton is offline
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Re: Swiss bank Wegelin fights US summons

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care to give some further explanation of this for us laypeople not so familiar with these matters?
Well people buy gold bullion (the actual physical stuff) from a bank & the bank offers to store it for them at a nominal price in their secure vaults.

The story is that these banks then sell the gold bullion (the actual physical stuff) & replace it with paper IOUs saying "when you ask for your gold back then we promise to give you your gold bullion (the actual physical stuff)"

The problem is that people buy the actual physical stuff because they do not trust pieces of paper and/or the organisations standing behind the promises written on these papesr. Consequently the gold owners would get quite miffed if they found out about this non-approved substitution.
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