You are here

Bron Suchecki: Fractional reserve bullion banking, Part 2

Section: Daily Dispatches

8:30a ET Tuesday, September 22, 2015

Dear Friend of GATA and Gold:

Perth Mint research director Bron Suchecki today offers the second installment of his series about fractional-reserve bullion banking. He notes that leverage in a bullion bank's business may not be as great as suspected, since some of the bank's gold obligations may not be immediately callable but instead limited by longer maturities. But, Suchecki adds, if a bank's gold obligation maturities don't match well or there is unexpected demand for metal, the bank may be forced to try to buy gold in the market or borrow it from another bullion bank or a central bank.

Of course, as GATA has noted, that is where the fun may start, including surreptitious central bank intervention in the gold and currency markets for price suppression.

Suchecki's analysis is headlined "Fractional Reserve Bullion Banking, Part 2" and it's posted at the Perth Mint's Internet site here:

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.


USAGold: Coins and bullion since 1973

USAGold, well known for its Internet site,, offers contemporary bullion coins and bullion-related historic gold coins for delivery to private investors in the United States, Europe, Canada, Australia, and New Zealand. It is one of the oldest and most respected names in the gold industry, with thousands of clients and an approach to investment that emphasizes guidance and individual needs over high-pressure sales tactics. The firm's zero-complaint record at the Better Business Bureau makes it an ideal match for the conservative, long-term investor looking for a reliable contact in the gold business.

Please call 1-800-869-5115x100 and ask for the trading desk, or visit:

USAGold: Great prices, quick delivery -- all the time.

Join GATA here:

New Orleans Investment Conference
Hilton New Orleans Riverside Hotel
Wednesday-Saturday, October 28-31, 2015

The Silver Summit and Resource Expo 2015
Park Central Hotel, San Francisco, California
Monday-Tuesday, November 23-24, 2015

Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference:

Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

Or by purchasing a colorful GATA T-shirt:

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

To contribute to GATA, please visit: