Naked Shorting of Gold- yes- Gold itself!

[orange]

some of you geniuses may already know abt this but i was shocked to find out this morning. i'm not talking about naked shorting gold stocks- i mean the metal itself. i always thought gold was "holy metal" or something that couldn't be messed with . it works like this....
Lollapalooza Gold Mines (LGM) has orders for gold but the buyers want actual physical delivery and LGM doesn't have enough metal to cover. so LGM goes to the IMF or to a Central Bank (CB) and leases gold based on their supposed in-the-ground reserves, with the supposed intent to give back the gold they borrowed at a later time. (this sounding familiar so far?) LGM then sells the gold thru a Bullion Bank into the spot market.
but according to this article http://gata.org/node/5296, gold producers often don't have enough in-the-ground reserves to cover. and the CBs aren't that interesting in calling the loans due anyway because the more gold that's in the mkt the more stable their currency looks, i.e., it helps keep gold prices depressed. been going on for years LOL... but now...
there's a move on at the IMF to stop carrying gold on their books as if it hasn't been loaned out and this would apply to CBs also. once that happens, IF it happens, the price of gold will go 'way up...

[BadThad]

OMG! That's a very interesting bit of info, I had no idea....just think of the impact.

[orange]

Originally Posted by BadThad

OMG! That's a very interesting bit of info, I had no idea....just think of the impact.

for sure, badthad. my post may not have been perfectly clear to others, tho, so i'll boil it down... with the CBs and the IMF presently pretending that they haven't loaned out all this gold in evergreen leases, it results in a kind of double-entry on the global balance sheet-- not sure if "double-entry" is the right term, but what it means is that when traders look at the gold supply, they're seeing a lot more gold than there really is, which in turn means lower prices.

[BadThad]

It is making me think twice about selling some gold coins I have. I am pretty close to selling a few to finance some other investments.....arrrgggg....now I'm confused. LOL