“I have no proof the rumor is true,” adds Egon von Greyerz of Matterhorn Asset Management in Switzerland. But “a lot of people who have studied it closely are convinced that there is a major shortage in physical gold at LBMA. LBMA trades around 700 tons net of gold daily. That is 25% of world annual production and around $6 trillion annually. To back that amount of trading on a 100% reserve ratio basis, it would need several year’s production of physical gold, which they definitively haven’t got.
“So as I have argued many times, LBMA, Comex, and the banking system as a whole has only of the fraction of the gold required to settle outstanding contracts when investors demand physical delivery. In addition, central banks have leased their gold to the LBMA member banks for years in order to suppress the gold price.
“Of the 30,000 tons that central banks are supposed to hold, I would be surprised if they have even half of that.”
No comments:
Post a Comment