How CUSIP Puts Your Wealth at Risk

Bill Brocius Apr 2, 17

CUSIP - A Veiled Form of Government Coercion

On September 26, 2016, the US Banking Industry had expanded its powers to tag and digitally surveil a number of precious metal products, many of which happened to be private assets. If you hold physical gold and silver, it’s important to realize that the safety of your assets have been severely compromised.

Last September, the American Bankers Association in conjunction with CUSIP Global Services (CGS) had begun tracking 93 precious metal products in depository storage.

These products were assigned standardized CUSIP identifiers: a 45-year old system used to tag, identify, and regulate specific financial products. With over nine million financial instruments in their system, CUSIP had set its sights toward expanding its claim over large segments of the precious metals industry.

The Risk to Your Safe Haven Assets

Why is this a big deal? First off, many of these assets were purchased as a hedge to protect against dollar-denominated instruments subject to inflationary risk. In fact, the absence of CUSIP identifiers for many physical precious metals products is the very thing that made them “safe haven” investment during times of financial catastrophe.

With CUSIP, all of that has changed. And you would wonder: “Why did the US Banking Industry take this step?” Well, there are two ways to view it:

The public narrative may seem harmless: it adds to the “efficiency” of the precious metals markets, making these assets globally recognizable and fungible--easily convertible into other forms of money or assets.

But the implicit narrative harbors something a bit more nefarious: it allows government to exert tighter control at the expense of your financial privacy and freedom.

Bear in mind that central planners don’t want you to withdraw your assets from the bank. As long as your assets stay with the bank, the bank, in turn, can use your assets to prop up its fragile fractional reserve system. But when the banking system crumbles, the value of your regulated assets go with it.

Gold Dumping - Opportunities for Smart Money Investors

The recent plummet in gold and silver coincides not only with the rise in stock market prices but also the implementation of CUSIP. And although metals have been sliding, it’s also worth noting that gold has been in a slight uptrend since the end of December 2016, with silver holding steady at discount levels. At their current price levels, both metals provide tremendous opportunities for investors.

If there is one thing that “smart money” does that most investors cannot do, it’s this: to buy sound assets during fire sales and to sell unstable assets during periods of irrational exuberance. And this is what is happening in our current precious metals markets.

But despite these opportunities, the digitization of precious metals--a desperate move by central planners--has complicated the situation a bit. It forces smart investors to change tactics to remain protected and unexposed to banking risks.

Surprisingly, the solutions are quite simple:

Convert your wealth to forms of gold and silver that are difficult for governments to regulate. We can assist you with this process.
If you are a Precious Metals IRA holder, contact us for a full list of compliant depositories with CGS.
If you are privately holding precious metals, contact us for a complete list of assets under CUSIP. You’ll find the sheer number of targeted products shocking.

Let us help you protect your wealth from the desperate workings of Big Government.