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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (2352)	4/12/2010 1:23:46 PM
From: Real Man	Respond to of 220946

nypost.com Yep, that would be equivalent to a bank run in a way. "LBMA has leverage of about 100-1 on the gold bars settled on the exchange." That said, the Fed appears to have a heavy invisible hand in that market through their agents. Now, if other CBs decided to buy and take physical delivery, that would start a squeeze. FWIW, George Soros's fund owns 10% of GLD, which is supposed to be backed by physical metal at LBMA, but in reality who knows it it's backed by anything. In principle, Central Banks own much more gold than GLD, but if they are unwilling to part with it or lend it, then a squeeze could develop pronto. -g-