Just so you know I'm not playing with the numbers, or just revealing certain markets, here is the TOCOM, which functions as a commodity clearing house between member firms. Physical gold trading has dried up there too, and in fact reinforces my point even more.
tocom.or.jp
In 1999, TOCOM averaged 1,334,250 Kg (35.2 oz/kg)a month.In the last seven months TOCOM cleared only 471,714 Kg./monthly. Physical gold that is available for purchase and sale (i.e: liquidity) has disappeared there too. My guess is that most of the leased CB gold is now in the form of jewelry, etc. In other words if the CB's wanted their leased gold back in physical form, it's gone. Just a paper receivable. How bullion bankers plan on paying back on short notice is a mystery to me. Well, not really a mystery, cause the answer is they can't. This market is set up for a squeeze. |
