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NTR/Elemetal refining in hot water?

Discussion in 'Purchasing Precious Metals' started by Montecristo, Mar 16, 2017.



  1. Montecristo

    Montecristo Silver Member Silver Miner

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    Wow, I hope Kitco continues to follow this story:

    http://www.kitco.com/news/2017-03-1...-In-South-American-Gold-Smuggling-Report.html
     
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  2. Silver Art

    Silver Art Silver Art Bar collector Platinum Bling

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  3. gringott

    gringott Killed then Resurrected Midas Member Site Supporter

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  4. platinumdude

    platinumdude Gold Chaser Platinum Bling

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    I got my 10 ounce prospector bars, the look nice.
     
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  5. southfork

    southfork Mother Lode Found Mother Lode

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    http://www.coinweek.com/bullion-report/ntr-metals-illegal-south-american-gold/

    Everything began to unravel on March 9, 2017 when Bloomberg came out with their "How to Become an International Gold Smuggler" article that introduced the United States to the illegal South American gold trade. In the article, Harold Vilches had a lot to say about the involvement of NTR Metals Miami and several of its employees (who denied the allegations).

    The day after the Bloomberg article was published, the U.S. Attorney's office filed a criminal complaint under seal, and within days the three NTR Metals employees were arrested and indicted with Conspiracy to Commit Money Laundering. On March 17, Elemetal issued a press release saying that they were cooperating with the government's investigation, and formally closed NTR Metals Miami (which makes sense, as most of their key employees were gone).

    Things were bad, but they got worse on March 31 when LBMA dropped both OPM and Elemetal from their "Good Delivery" list (so new bars could not enter the system). Hours later, COMEX followed, saying they would no longer register (warrant) Elemetal bars. This is not normal: COMEX has only done this once with a metals company in the past decade (an aluminum provider). Although COMEX gave a cryptic reason (referring to an "active review under [LBMA's] Incident Management Process"), presumably both LBMA and COMEX felt that there was likely enough illegal gold in the OPM/Elemetal bars to justify removing them.

    That was essentially the death knell for Elemetal Refining. The same day they were removed from LBMA and COMEX, they became unable to make payments to customers, and on April 6 sent a letter to customers saying that they were discontinuing their high-grade-metals refining business. Apparently, Scotia Bank (which has a lien on refining metal as soon as it is delivered to Elemetal Refining) discontinued their line of credit and wanted to get paid back. Elemetal said that they are confident that they will be able to pay all their customers within six months, and that by delaying the payments they could avoid bankruptcy (which, they say, could delay payments for years, and as I am all too aware hands out millions of dollars to attorneys and other professionals).

    Note that while Elemetal Refining, LLC is shutting down its gold and silver refining, there is no indication that any of their other businesses are affected. I specifically asked Elemetal Vault regarding possible liens on metal stored with them (which is owned by their customers), and they stated that there are no liens nor could there be. And Provident Metals, while they would not answer my questions (which I see as a red flag), appears to be delivering quickly (slow deliveries were the biggest sign of financial problems with Tulving, Bullion Direct, and NWT Mint).

    Why Is Illegal Gold Bad?
     
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  6. Usury

    Usury Gold Chaser Platinum Bling

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    Hmmmmmmm
     
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  7. gringott

    gringott Killed then Resurrected Midas Member Site Supporter

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    Blood gold. I'm liking it.
     
  8. Ragnarok

    Ragnarok I'd rather be Midas Member

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    Is there any possibility of clawbacks of previously purchased items?

    R.
     

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