Thread: Gold Buying
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Old 17.08.2010, 23:03
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Re: Gold Buying

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I think that you will find that there are a lot more IOU notes for Gold than actual physical Gold.
When you lend someone money and they give you an IOU note; try giving your IOU note and ask for your money back when they haven't any money or they inform you they have gone personally bankrupt.
Last time I did an internet Google search the figure I found was 100 IOU notes for the equivalent physical gold weight of one IOU note. This figure came from a CFTC hearing in March this year (that does not necessarily make it a true figure).
US Congress created the Commodity Futures Trading Commission (CFTC) in 1974 as an independent agency with the mandate to regulate commodity futures and option markets in the United States.

Of course there are firms who claim to back their IOU notes with real gold but how can simple people like us verify such claims?
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