What's going on at MF Global?
http://bit.ly/vBkQq3
By Jeremy Holcombe
Contributing writer for Goldco Direct and End the Lie If you held an account with MF Global, then you are probably shedding money faster than anyone else in the precious metals arena right now. It seems as though that not only has over a billion dollars disappeared from the now bankrupt MF Global, but even bars of precious metals have been shrinking by more than 25%. How gold bars in a vault are shrinking is anyone’s guess. It seems that every investor who held an account with MF Global is about to get one of the worst deals actually, as part of the individual bankruptcy issue that MF Global faces. The failed brokerage wants to dump all of the remaining customer property it has into a simple pool that would pay customers only 72% of the price of their holdings. These holdings include gold, silver, cash, options, futures and commodities. Nothing is safe over at MF Global. So what does this mean for any investor that used MF Global? This scenario means that investors and traders who have already paid out full price for bars of gold and silver – and even have the warehouse receipts to prove it, will have to forfeit 28% of the price of the items the acquired through MF Global. What’s worse, not only do these traders and investors stand to lose a lot of money the way things stand now, but legal professional and liquidation trustee James Giddens has frozen all property. This means that not only are these traders going to lose this money as it stands now, but they have also sat helplessly since late August while prices for gold and silver have continued to drop. The final kicker is that investors are still being dealt fees for storage of their commodities through MF Global. Trustee Giddens could not be reached for any kind of comment related to what is occurring, however, even if he could be reached, I am not too sure what exactly he could or would say to make this better. How is something like this even lawful? To be honest with you, I am not sure it is, however not much is being done right now, mainly because a large portion of MF Global’s commodity clients cleared their transactions through the Chicago Mercantile Exchange (CME) and Comex. The main question now is whether or not the CME will be liable for all the customer losses experienced at MF Global. In my opinion they should be. Someone needs to step up and get these traders and investors their money again. The way I see it is this: plenty of people lose and gain money in the precious metals arena. However, you should lose and gain your money based on you investment strategy and based on what the market does. You should not lose a ton of money based on a situation like this where a company goes bankrupt and tries to dump money owed onto someone else, or not pay it at all. [Editor’s note: unfortunately, even if this is indeed illegal, I doubt that anyone will be held accountable for their involvement. We see time and time again that the people behind these policies and the systemic problems that have afflicted the banking and investment sectors are permit off scot-free while the average people are left to pick up the parts and endeavor to make up for the crimes of the so-called elite.] The above article is for informational reasons only and is not a solicitation by End the Lie or Goldco Direct . It is the commentator’s opinion only and not supposed for investment recommendations, and does not necessarily replicate the views of End the Lie or Goldco Direct . Any references to outside sources are considered to be accurate. Past performance is not a guarantee of future results. All commodities involve