Groundup

Kinesis Yield Systems
 

Maguire clearly states the client demanded 500kg of gold bars returned which were being held in the bank vaults. No mention of bonds. The gold holding was unallocated.
i have explained numerous times before, the banks do not have these unallocated gold bars. Legally these bars are the banks. If a bank were to hold 50 tonnes in unallocated kilo gold bars you might imagine 50 tonnes of kilo bars and the client was simply demanding 500 of them.
The problem is the banks do not have these bars and potentially never had them. The client will have originally instructed the bank to buy gold. He would have handed over the cash but instead of buying gold the bank used that cash for other purposes. They banked on no-one demanding their gold back and on permanently low gold prices. They then have $billions to play with. i am aware of cases where the bank was charging for the storage and insurance of the gold which never existed - no doubt this is endemic.
This gold is generally highly leveraged. A few bars with 100's of claims. Someone turning up demanding 500kg just cannot be dealt with. A few bars here and there but removal of 500kg, even if it were there, would ramp up the leverage, so the significantly depleted vault holdings now have many more claims per bar.
The point Maguire makes is here is one of several recent examples where the banks have been exposed as not having the gold. That more and more people are turning up demanding their gold only to find the small print of the contract means they will be cash settled and there is no gold. Likely the guy will take the cash and get Maguire to source him the gold.
The real physical market is going to get tighter and tighter. There are 1000's tonnes of gold in unallocated accounts which does not exist and probably never existed. As the reality of this fraud becomes more apparent and gold holders demand gold. potentially to deposit in the Kinesis system for a yield, we can only expect upward pressure on physical gold prices and an official price reset.

Yes the registration is a legislative hurdle. There is an alternative to Isle of Man. i am not sure if this is in the open right now. The preferred location is IoM but the other option is very crypto friendly and in the EU, so an ace card up the sleeve if needed.
Kinesis is working with miners. There are wholesalers and traders, the likes of Andrew Maguire with years of buying/seller tonnage in metals. They are running the Allocated Bullion Exchange sourcing metal - it is their basic business to get hold of metal. There is likely to be an issue if you put in offers to buy very large tonnage - it will get declined. There is a 'scheme' i heard via Andrew Maguire to buy metal which goes under the radar of any boycott/block the LBMA might wish to apply. i don't think that is public but it is ingenious.
Yes if unallocated account holders decided to switch to Kinesis this could set up a shock wave to take down the system. This is something i have mentioned on the forum several times. In most cases the gold doesn't exist - it probably never existed. So an unallocated holder who requests gold won't get it, they will be paid out in cash. They will then come into the Kinesis system and there will be gold and silver bought, vaulted and taken out of the system. GLD holders might cash in and go to Kinesis - and so on and so on. There is so much gold on the books that does not exist. When this becomes apparent, when unallocated and allegedly allocated are refused delivery the game is up and the house of cards collapses.

From webinar this week. Were on King World News today but not on the site yet
 

To my knowledge you need at least one KVT to buy coins in the pre-ico sale.