Record High Demand For Physical Gold Threatens To Break The Back Of The Paper Gold Market

At that point, alarm bells started to go off in financial circles all over the planet. People all over the globe began asking for their gold back, and now this is causing serious stress for the bullion banks. The following is what Hong Kong hedge fund manager William Kaye told King World News the other day…

There are serious strains in the (gold) system. I’ve never witnessed such a serious strain in my lifetime in terms of the backwardation of gold, and in terms of the lease rates being negative for such an extended period of time. This suggests that there are two forces at work: One is that there are serious strains in the system — that the bullion banks are struggling to come up with the physical gold for spot delivery that the market demands


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