posted on Aug, 13 2012 @ 01:44 PM
I think most of you are looking at this wrong. banks, etc. have to maintain certian capital levels. If the article is correct they can only count half
the value towards their capital. If all of a sudden they saw a huge increase in capital due to value gold at it's full market value, then they could
sell half their gold without affecting their capital at all. They can then loan that money out and using leverage make higher probably profits.
Such a scenario would be very bad for the price of gold.