[bert]

Yes, of course.

There is an unwarranted assumption that the gold will remain in New York. Once collected and in one place, the gold can be moved in a secure manner to a vault in Texas.

[dennisw]

Have you seen the internet chatter that MF Global went under in collusion with the CME because the CME did not have gold and silver bars to deliver to those who were taking delivery on futures contracts?

http://online.barrons.com/article/SB50001424052748703856804577098740322633760.html?mod=googlenews_wsj?mod=googlenews_barrons