What will happen if there is a run on a bank and lots of people line up to withdraw cash? The $10,000 limit could easily be lowered to $5,000.
The same as will happen if people lined up to cash in their gold certificates with some banks because the banks do not own anywhere nearly enough gold to pay all certificate holders. The certificates are just a bank promises to pay the equivalent value to the gold certificates that are held by the certificate holders.
At least with the Perth Mint, when you buy gold and have them store it for you, the mint actually has the gold stored in its vault.
