unlikely to happen. A) chinese are already buying up big -- they have been for many years allready -- the Indians as well and it has not happened yet with only 1 % of contracts calling for delivery. also I dont believe Chinese can legally buy foreign gold like this. ( they are legislated to only buy domestically) -- I am pretty sure this is the case not toally if anyone wants to correct me here.
You asked for a scenario and that scenario is possible. I didn't say it was likely but the Chinese govt might just get pissed at America about something else so decide to teach them a little lesson in capitalism. Wtf? Do you even have any idea how much gold has been flowing into Hong Kong for years now ? Go and sell a 100 oz gold bar to a scrap dealer in Aus today and I bet it will be on a plane to Hong Kong tomorrow. Are you just making stuff up as you go along ?
ok I should have said realistic scenario -- we both know the fantasy in your tin foil wrapped heads about them defaulting are just that fantasies in your head. You might as well said aliens will come to earth in large ships and steal all of earths gold using human slaves to work their huge under ground mines. (http://www.imdb.com/title/tt0409847/) I know a lot of gold has been flowing over there for many many many years yet still only 1% of contracts call on delivery and the vaults are still holding gold. There is no realistic scenario that will unfold within my life time that will see a run on these contracts to make the other 99% of the contract holders call for physical delivery, to even put your fantasy scenario into reality.
like I said fantasy scenarios in your tinfoil wrapped head as you cant fathom your own reality. The simple facts are that they will not "default" and the vaults wont run dry any time soon, neither of us will ever see this scenario unfold. Silver or gold will not "go to da moon" because comex pays out in USD on a couple of contracts, the chinese aren't the big bad wolf out to get you.
biggest recession in past 80 years, and demand is hovering near all-time highs... Yes, less than prior to recession, but considering this...it's doing quite well.
