GOT CASH? WANT CASH? BANKS MAY NOT COOPERATE
There have been lots of clients calling me in regard to cash, digital dollar and just plain concern about the banks regulating their personal accounts.
Sometimes I feel like people fall for conspiracy theories. I have been in the metals business for 41 years and I have heard it all. I have heard certain newsletter writers predict the end of the world practically every year or so.
I used to give seminars in the 1980’s with Ron Paul. He would talk about the rainbow money all those decades ago. I have clients who are asking me about rainbow money now. So, I am usually a little skeptical. Some of these theories have been around for quite a while.
That said, a lot of strange things have been happening lately. Some with no explanation from the banks.
I had a local client who purchased $300,000 in gold from us. We locked in the price and sent her the invoice so she could have her bank send us a bank wire for payment. The bank refused to send more than $50,000 to anybody except payments for real estate. This was a major bank and they would not give her a reason. She ended up writing a check and we got paid. I have never heard of a bank refusing to send money where their customer requests it. I don’t believe it’s even allowed but they did it.
I had another very wealthy client tell me he got an email from his bank telling him he needed to move his money elsewhere. They gave him a deadline and said if he did not move the funds, they would be mailing him a cashiers check for the entire amount.
He assumed it was fraudulent email and physically went to the bank. Imagine how surprised he was when they confirmed the email was from them and he was required to move his money. They would not give him any explanation.
Yesterday I got a group message on a dealer trading site that is widely used by coin and bullion dealers to trade, buy, sell, and exchange information between ourselves. Here is the message:
As Bob Dylan says " the times they are a changing"
Been with our bank over thirty years and now they don't want cash,and we have an AML Plan .
Customers can't get 100s at the bank only 20s.
Anybody else experiencing the same ?
We have even been warned by our bank for depositing LESS than $10,000 in cash four times over about 6 months. They accused us of structuring the deposits to avoid having them report our cash. I could maybe understand that except for the fact that we deposit hundreds of thousands of dollars in many months and they certainly report that!
I suspect that all this is related to the Federal government exerting pressure based on the Patriot Act. The banks will do almost anything to avoid the appearance of violating that in any way.
In any case, the war on cash is looking very real.
Ironically, the more the banks control cash and accounts the more people want their money out of the bank.
The woman in the first story I shared was buying gold because she told me she simply did not trust the bank and was afraid of keeping her money in the bank. When they restricted her bank wire it only reinforced her fear.
Maybe these are all no more than coincidences. Maybe there are reasons for the banks actions that I don’t know about. I find it curious that the banks give no reasons for most of these situations.
If you are among those who are a little nervous with money in the bank, I suggest putting some of it in metals. Prices on gold and silver are still very low even though they have come off their lows.
A sure sign of demand for physical metals is the almost daily increase in premiums on so many bullion coins.
I am constantly looking for better deals and have just a few I can offer.
- Nick Grovich