I’m not in the gold market, so with that out front here’s my question.
Is this possibly the way that certain people who have been saying for some time that there is not enough “physical” gold to cover all of the Gold certificates and the demand to repatriate gold back to various countries, ie. Germany, China etc. to force things to a head?
If so, then what are the effects of there not being enough physical gold to cover all of these demands?
Excellent question. It's what I wanted to ask.
If the re-hypothecation of gold gets exposed it could drive prices higher I imagine.
ABN AMRO, the largest Dutch bank in the Eurozone, issued a letter to their gold contract customers of failure of delivery, and instead will pay account holders in a paper currency equivalent to the current spot value of the metal.
Can you imagine being DENIED delivery of your gold and being told instead you will have to accept fiat paper money at manipulated paper gold prices? Ahh! Frightening!
But that was a good question you had there.