The well respected teacher, broker Jim Sinclair has been mentoring investors since 1977. Mr. Sinclair is a level headed, cautious investor void of the alarmist mentality. So when he says “Take the money and Run” you might want to pay attention.
[..]You know that information that comes to me has been reliable. You also know that the entire purpose of all of working here at JSMineset has been to get you through this safely. You also know that if we had not been here hundreds of thousands of people now holding gold would not be.
So please pay attention to the following.
I have heard rumors for some time, but today it was confirmed to me, that the Canadian mint’s present problems are not unique and that other depositories (vaults) have had an army of auditors descend on them in the last two weeks. Some of these depositories have names so famous that it would scare the hell out of you. The repercussions would be drastic if they turn out to be troubled.
I suggest to you now that you take delivery of all gold held in vaults and depositories on your behalf, but this time even from the most prestigious.
[..]
What made Mr Sinclair issue this statement? In April a “discrepancy” in the Canadian Mints books turned up.
External auditors are investigating a discrepancy between the mint’s 2008 financial accounting of its precious metals holdings and the physical stockpile at the plant on Sussex Drive in Ottawa.
The mystery raises possibilities from sloppy bookkeeping to a gold heist.
Officials with the commercial Crown corporation are saying little and refuse to confirm the amount and value of the unaccounted for gold, silver and palladium.
“An unprecedented demand in gold in 2008 has led to an unreconciled difference between the mint’s financial statements and the physical count of precious metals. There’s a difference there that we’re looking into,” Christine Aquino, mint spokeswoman, said in a prepared statement Tuesday in response to questions from the Ottawa Citizen.
“We’re taking this very seriously. We’re conducting a thorough review and we’re expected to have that completed within the month. (It) includes the analysis of precious metal by-products and financial data. We’ve allocated all necessary resources to this review.”
She stressed police have not been called into what mint officials consider an internal matter. She would not say whether the gold and other metals in question were part of the refinery and bullion operation or one of the mint’s three other business lines: producing Canadian circulating coins, designing and producing coinage for foreign countries, and numismatics.
“We’re looking at many different angles right now,” she said.
That was April. Well low and behold it is now June and the
Mint’s conclusion? Call in the Mounties!
OTTAWA – On government orders, the Royal Canadian Mint has called for a criminal probe into as much as $20 million in unaccounted-for gold and precious metals at its Sussex Drive headquarters.
The looming police investigation comes eight months after the Crown corporation first learned it had lost track of the riches last October. The Citizen revealed the mystery last week.
The call for a police investigation is the third effort to determine whether theft or an accounting error is behind an “unreconciled difference” between the mint’s 2008 financial records and its physical stockpile of gold and other precious metals.
An internal “precious metals reconciliation” project was initiated by the mint last fall. In March, with that reckoning apparently no nearer to finding answers, an external audit was commissioned.
Security at these facilities is unsurpassed. So where did it go? This will continue to play out in the coming weeks. What is interesting (and yet alarming) is … it doesn’t appear to be an isolated incident, at least according to Jim Sinclair.