If the Canadian Mint has a problem and gold is missing it will more likely be due to a crime than fraud. However the rest of the metals industry may have problems for the second reason, namely they don't have the metals to back their pool accounts and the certificates they've issued.

When was the last time you went to the bank, issued an order for a large withdrawl in cash and had the bank personnel respond in a manner like this.......

thoroughly and aggressively defensive.

Since the scandal broke last week, some precious metals market advisers have been trying to instigate "some kind of a run" on the custodial accounts of the Ottawa mint and other mints around the world, said Jon Nadler, senior metals market analyst with with Montreal-based Kitco, one of the world's leading precious metals bullion dealers.

"I cannot name names, but I've seen a number of forums and blogs and newsletter alerts from people who claim to be market analysts and saying, 'You should take delivery of everything that's in storage, no matter who you keep it with because of things like this,'" Nadler said in an interview Friday, calling the tactic "pathetic." (emphasis mine)

I think we all know the person he is chiefly referring to don't we?

How about, "He's doing his best to protect people." The early bird gets the worm you know. And there may soon be a worm shortage.

Can you think of any reason why Nadler considers such actions odd or threatening? He by his words does more to undermine my confidence than anything others may have said.

I mean Kitco does have the gold to back its pool accounts doesn't it? Or surely they can call a fellow dealer who will bail them out for a brief period (and a fee)?

Perhaps they already tried that and found their fellow dealer has been approached by other pool account and certificate sellers and not only is he out of inventory but he's looking for more too. So they try calling another dealer, this guy isn't cheap but he always has product but, "No, sorry, I just got off the phone and did a huge deal with that down under outfit that J.H. has been saying has insufficient backing for their certificates and they cleaned out all my inventory. I'm out and looking for more; a lot more"

Is this the situation? Hard to say but it is difficult in this business world to resist the temptation to get your hands on some cash and give someone a certificate (a piece of paper) and worry about the consequences later.

We know a bank did this and then had the nerve to turn around and charge storage fees for metal which didn't even exist. That came out in a court case where they defended themselves by saying it was "standard practice in the industry." By their own admission this is standard practice in the banking industry, so it is very likely standard practice with mints that issue certificates to the public and dealers that sell pool accounts to the public.

Yea, I do believe Nadler doth protest to much.

P.