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@ Logen
2025-02-08 11:33:58
My gut instinct tells me this would cause a gold price cascade upward. As more banks notice a risk on paper gold, they will flock to obtain physical gold in order to meet their liabilities.
Even if central banks step in to sure up the market, it will signal inflation expectations to rise for the individual investors, further pushing the physical gold price higher; which increases the spread of price making it even harder for the these ‘paper gold’ clearing banks to meet their liabilities.
Like a good old fashioned bank run.