Don't keep your gold in bank vaults

Jim Rickards: Don't keep your gold in bank vaults
Submitted by cpowell on Wed, 2010-04-14 04:22. Section: Daily Dispatches

12:15a ET Wednesday, April 14, 2010

Dear Friend of GATA and Gold (and Silver):

Interviewed by Eric King of King World News, Jim Rickards, senior managing director of the Omnis Inc. consulting firm in McLean, Virginia, says:

-- Far more claims to gold have been sold than can be delivered upon.

-- To save the dollar the United States will be forced back on a gold standard with convertibility and gold revalued to $5,500 per ounce.

-- China's need for gold to back its own currency and hedge its U.S. debt exposure is massive but the metal isn't available even as the Chinese government is commandeering the output of Chinese mines.

-- And gold owners should keep their metal in vaults not operated or controlled by banks, since keeping gold in bank vaults negates gold's purpose as a wealth preserver outside the banking system, which is vulnerable to a run on gold banks.

It's a great interview, 30 minutes long, and you can find it at King World News here:

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2010/4/14_Jim_Rickards.html

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.