"Exclusive Interview – Ned Naylor-Leyland: “The Chain of Custody Behind Gold’s Price Setting Mechanism Appears to be Breaking”
...In regards to the impending PAGE launch Ned said, “The great thing about this new exchange in China and the philosphy behind it, is its harking back to the old days of gold where you pay cash and get your gold ... they’re opening up a 1 to 1 fully allocated recieipts market in gold. If Jeff Christian is to be believed, there is 350 to 1 leverage[in the Western paper gold markets]. That will give you a 0.3% coverage in terms of real metal behind your contract.”
Ned further adds, “I think the opening of the new Chinese allocated market will change people’s perception of holding huge leveraged unallocated positions within the LBMA system.”
The full read and interview is at http://bullmarketthinking.com/ned-naylor-leyland-the-chain-of-custody-behind-golds-price-setting-mechanism-appears-to-be-breaking/
