“But what had happened was, over the years, basically what you would do is you would sell gold, sell silver, financed almost for nothing, take that money and invest it. Then, obviously incentive was there because it had built up to such a large (short) position, they were so over-collateralized, that it was important to defend the price (of gold and silver) from rising because they didn’t actually have the physical.
What’s happened now is they are in a position where that leased gold is being asked for and they don’t have it. I know of a very large client who actually turned up for his bullion, was refused his bullion, and told he would be settled in cash. I felt I should go public with that (on KWN).
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