Assuming that the bars are not stamped with serial numbers.
Gold could have been leased or sold at higher price earlier, and bought back this week at lower price. Still a physical hand over. There is motive, but it is small money in the scheme of things.
If Gold reserves have been used to sell it into rallies to prevent physical squeeze from times when actual physical transfer was required then that could help suppress POG, weather it is legal or not - I have no idea, there is little transparency in this area, which some might call a smoking gun in itself.
Would Suppressing POG have any bearing on Interest rates on Gov. Bonds? As Timber mentioned, Gov. debt is not an issue as interest rates are at record lows.
For the time being can the US Gov pay their running costs without raising money by selling bonds?
Who is the biggest buyer of those bonds?
The central theme of the Gold Bug doomsday scenario as I understand it, focuses around the sustainability of the US governments income stream, and how it is necessary to keep POG down in order to keep interest rates low.
Is this connection real? If US is buying the bonds themselves then there is no demand for higher interest rate anyway. If retail buyers are largest buyers, then higher interest rates makes new bonds more valuable but old bonds less ? - (never really got this)
Guessing those who are still going Long on Gold have a much better grasp on the finer points. If they are right this is a great buying opportunity.
What ever the case it should be easy to dissect and verify.
