Physical gold availability in London is a net negative, said Paul Mylchreest, a leading ADM Investor Services strategist who questioned the validity of trading mechanisms in the London Bullion Market. “If there is no gold float (supply), there is nothing supporting more than $200 billion of trading every day,” he writes, as China looks to take leadership in world gold trading by backing its contracts with physical gold reserves. Mylchreest: London Bullion Market facing the biggest challenge since it collapsed from an insufficient supply of physical gold in 1968 Using data from the London Bullion Market Association and Bank of England…
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- Mylchreest: London Bullion Market facing the biggest challenge since it collapsed from an insufficient supply of physical gold in 1968
- Mylchreest central point: What happens in a supply and demand formula where supply is elastic?
- Mylchreest: Watch for the emergence of China with a physically backed gold contract, time running out for London
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