Wednesday, October 19, 2011

Eric Sprott to Open Gold Backed Bank

Sprott chairman Eric Sprott. Photo: Mike Cassese/Reuters

Eric Sprott is reportedly in the process of opening a gold backed bank which accepts bullion deposits, does not make loans, and allows depositors to write checks against the bullion held in Sprott's bank.

Eric Sprott, one of the most vocal critics of the global financial system, wants to start a bank. But it won’t be like any bank most people are used to seeing.
Mr. Sprott and the asset management firm he founded, Sprott Inc. are investing in an Ontario-based currency trading company known as Continental Currency Exchange Corp. They, along with the current management of Continental, are applying to federal regulators for permission to turn the 17-branch operation into the Continental Bank of Canada.

Taking it a step further, customers who don’t trust government-issued currency may some day be able to keep their deposits in the form of gold and other precious metals that they could tap for everyday purchases. That idea is in keeping with Mr. Sprott’s musings about chequing accounts backed by precious metals – customers could deposit gold, then make purchases by cheque and have their accounts debited accordingly.
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