gld lost 5 tons, page-11

MTI

I think what Hercules is saying is if GLD buys in 7 ton of Gold they can sell each Physical ounce a 100 times in paper contracts as the paper to Fizz ratio is 100 to 1. That is for every fizz ounce the Banks that clear through Comex actually have they sell paper worth 100 times that because only a small percentage of players stand for delivery of Fizz. It is dangerous because as like last year JPM had more outflows of Fizz Gold that they actually were holding and they had to buy on market from other banks to make up the short fall. Its all the same banks doing business through third, fourth, fifth... parties and the Fizz is actually leased and sold many times over.
Take Australian Gold Reserves. They are in the Bank of England. Why is our GOLD in the BOE? because it is being leased and rehypothecated by the LBMA. You can bet the GOLD is not really their any more its gone and that is why Tony Abbott refused to have an independent audit of our GOLD.