What is unallocated gold or silver?
There is no way to be sure how much available gold or silver there is for one simple reason. The unallocated positions held by account holders are not actual metal but liabilities. Here is the IMF’s understanding of unallocated gold.
There is no way to be sure how much available gold or silver there is for one simple reason. The unallocated positions held by account holders are not actual metal but liabilities. Here is the IMF’s understanding of unallocated gold.
imf.org/external/np/st…
“Account providers hold title to a reserve base of physical (allocated) gold and issue claims to account holders denominated in unallocated gold. The account holder does not hold title to physical gold
“Account providers hold title to a reserve base of physical (allocated) gold and issue claims to account holders denominated in unallocated gold. The account holder does not hold title to physical gold
but instead holds an unsecured claim against the account provider, in effect a deposit with the account provider. The account holder does not have legal ownership of the physical gold but is an unsecured depositor. The account holder is a creditor
to the account provider, and so in the economic system this asset has a counterpart liability. The bullion bank can use the deposited physical gold for its own trading purpose and so does not necessarily have 100 percent backing in physical gold for the unallocated gold accounts"
Silver's treatment would be similar. #silversqueeze #unallocated #gold #silver #Commodities #holddirect
#DYOR #education
#DYOR #education
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