In order to force the world to accept that the emperor has no clothes in derivative gold and silver markets, Russian agents (since Russian bankers themselves are banned from participation in London and New York precious metal derivative markets) can show the world that the Emperor Has No Clothes in the international gold markets by forcing the percentages of gold and silver derivative contracts that settle in not just physical, but settle with load-out requests, much higher from current levels.

At a time when gold bar bans on Russia will place even more stress on likely inadequately supplied inventories that back Western gold derivative market trading, the custodians running these potential Ponzi schemes desire the exact opposite of the above - higher percentages of derivative contract settlements in EFP and cash transactions. Paper being swapped and exchanged for more paper in physical derivative commodity markets is necessary to keep the fraud alive and if shrinking physical inventories keep shrinking, there eventually will be a line that is crossed that will either necessitate laws being changed by the LBMA and CME that make it illegal to load-out gold (and silver) in order to protect their paper shell game. And if this happens, well you can own your gold and silver in LBMA and CME markets, but simply never legally take possession of it.

In any event, since increasing economic sanctions against Russia are likely to spark retaliatory actions, the BOE, the Feds and the Bank of France may want to tread very carefully in forcing further gold sanctions against Russia as to not force a surprise attack on likely illegitimate Western gold and silver derivative markets that would, once and for all, prove that the Emperor Has No Clothes. (read more)