By Adrian Douglas
Recently I have written several articles that have discussed how much “paper gold” has been sold, principally through the unallocated accounts of the London Bullion Market Association, though there are other vehicles that achieve the same end, such as pool accounts, unbacked exchange-traded funds, futures, and derivatives, etc., but the LBMA dwarfs them all.
I estimate that as much as 50,000 tonnes of gold have been sold that do not exist. That is equivalent of all the gold reserves in the world that are yet to be mined — or, put another way, 25 years of gold production.
That is the granddaddy of all short positions.
Continue reading If Your Gold is at an LBMA Bank, You May be Just an Unsecured Creditor
