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Did FNB CEO just admit Krugerrand service is a fraud?

By JGalt, on August 3rd, 2011

CEO of FNB Michael Jordaan tweets this morning:

Gold coins sold out in Lisbon.

An ignorant person asks him why this is so, to which Jordaan gives this humdinger of a reply

Cos they can’t buy it online from FNB RT @Papza_who Why? RT @MichaelJordaan: Gold coins sold out in Lisbon.

Is he saying that FNB is able to avoid the laws of supply and demand because it doesn’t need to actually sell the physical metal to satisfy demand?  We noted that the banksters would spot this opportunity to fleece customers over and above the fractional credit creation theft it is already engaged in back when the service was launched.

Jordaan may just have admitted that this is indeed what FNB is doing. If this is so, it is fraudulent.

Don’t fall for the banksters and their paper gold sold through ETFs and online share trading platforms.  Make sure you get your hands on gold-you-can-stick-in-your-pocket-and-walk-away-with-without-relying-on-anyone type of gold before there is none left in South Africa either.

UPDATE: Michael Jordaan replied to this, and we have posted a follow-up to it here.

By JGalt, on August 3rd, 2011 | Category: Financial Markets, Gold

3 Responses to “Did FNB CEO just admit Krugerrand service is a fraud?”

  1. T-man says:
    August 3, 2011 at 10:23

    They do say in their FAQ that you can take possession of your coins, so hopefully this is indeed the case: https://www.fnb.co.za/share-investing/education/faqs-krugerrands-charges-and-safe-custody-of-krugerrand-coins.html

    • JGalt says:
      August 3, 2011 at 10:54

      You can also take possession of your Rands in the bank. Doesn’t mean it’s all there…

  2. Elainedem says:
    August 3, 2011 at 15:27

    To clarify from FNB Share Investing perspective:
    @T-man – yes you are correct. You can take physical possession of your coins.
    Every coin purchase involves a coin being transferred to the client. We do not sell “gold certificates” to clients, but rather actual Krugerrand coins. Each client’s coin holdings are kept at Rand Refinery and are kept in the client’s name. A “run” on FNB’s gold business, in which every client requests physical delivery of their coins, will see every client receive their exact holding in coins. If FNB goes belly-up, clients’ coins will still belong to them, as per our arrangement with Rand Refinery, i.e. clients have first claim to their coins at Rand Refinery and FNB is obligated to provide clients with their coins in this instance.