What's it matter if no one takes their gold out of the bank it will never be tested. And how is it different with paper deposits. If people front the bank to withdraw their savings then the bank fold - pure and simple. Banks in Australia are not required to hold anything more than the SRD which rarely runs above 10% of total deposits. Should there be a run on allocated gold then the government would have no choice but to limit gold withdrawals to cash. It is probably written in the fine print agreement when you buy allocated gold anyway.
