Rabobank has just followed in the footsteps of ABN Amro which effectively defaulted by halting deliveries of gold bullion in April, as the Dutch bank will close customers’ gold accounts effective September 1st!
With the GOFO now negative for a record 8th consecutive day, it appears the wave of bullion bank defaults warned of by William Kay may be just getting started.
As Beurs reports, Rabobank has given no explanations for the move, simply stated that customers can no longer acquire precious metals after September 1st, and will have up to 1 year to transfer open accounts to another institution:
"Rabobank grabs the slump in the gold and silver market to get rid of accounts linked to these precious metals. It follows in the footsteps of ABN AMRO that made possible the delivery of physical gold and silver a few months ago. It is striking that another Dutch bank takes a decision that the liquidity of physical gold and silver limited.
From September 1, customers can no longer precious metals purchases. Who then some in his account has standing, given a year to the balance to sell or transfer to another bank.
“Why does Rabo it?”, Asks Pascal Paepen of De Morgen himself, “I do not know” was his answer.Were there a little too much to lose customers who had speculated? Or would the bank no longer dealing with products that are not in the market? The popularity of the precious metals account may significantly decreased by the rise of all kinds of ‘trackers’ and ‘ETFs’."
It appears that the barbaric relic known as “tradition” is becoming rather scarce to source or hold in volume in the Western banking system as the bullion banks have reached the bottom of their barrels.