National gold reserves leased into the market are being melted down and re-stamped in Hong Kong. German gold reserves are gone and exist only as a book entry, same for all leased gold from western central banks, like the RBA, that gets sold into the market and makes its way to the eastern sovereign gold buyers like China and Russia. So says William Kaye on King World News (from around the 14 minute mark). http://kingworldnews.com/kingworldnews/Broadcast/Entries/2013/7/10_William_Kaye.html
Well of course it's being melted into other forms once it gets sold. How is this a surprise? Once a buyer has possession they can do what they like with their gold. The Perth Mint's 1 tonne coin on display is made from leased gold. Obviously they melted it all down to cast into the coin.
