Cash and "Cash", page-2

ididwork


"There is cash and then there is cash"

Too true idid!
I found out a couple of years ago the cash reserves the banks are required to hold onto are not strictly cash but liquid assets.
They call that cash and I guess any asset that is as liquid as cash is just as good and maybe better in some cases.

Gold, well there you would think that if you bought contracts at 100 troy ounce per contract from the COMEX futures and you stood for delivery at the end of the month that you would be given your lot in Gold bars would you not??

Well as it turns out I found a document a couple of years back that says that is not the case.
They can pay you in Gold bars of varying refinement, cash and interest in another ETF similar to the GLD. This means they can pay you with contracts in another ETF and the rest in cash and Gold.

Basically there are rules in the COMEX that let them get away from ever running short of Gold when they have big outflows.