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Here is an interesting extract which sounds like a prelude to chaos:
"In New York, "No one's letting go of their gold," confirmed a senior figure in Comex precious metals to BullionVault on Tuesday.
Gold Futures contracts are being settled in cash only, he said, rather than with physical metal, leaving would-be buyers without the metal they want.
Central banks have also been keeping hold of their gold, despite the recent near-record prices. The 15 members of Europe's Central Bank Gold Agreement can sell up to 500 tonnes per year between them in total. But the current year of the Agreement, due to end this Friday (Sept. 26th), has seen them fall short of that ceiling by at least 130 tonnes.
Last week they sold a total of only three tonnes according to figures from the European Central Bank (ECB). The average sale since the Agreement was first signed in Sept. 1999 stands nearer eight tonnes per week.
Meantime in the active gold markets of Dubai and the Far East, dealers continue to report physical shortages."
By Adrian Ash
BullionVault.com
