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“For the record, nearly 40,000 contracts of COMEX gold futures has a total notional dollar value of $7.2 billion (at $1800 per ounce) and each dollar move higher or lower would equate to $4 million for the holder, and $400 million for each $100 move in the gold price. Minimum initial margin requirements would run $8250 per contract or $330 million for 40,000 contracts. My best guess is that the position in question was acquired at roughly a $1770 per ounce average price.”
Comment,
My guess it may be a $7.2 billion purchase by a big central bank or a government. And they will take delivery. When TSHTF paper Gold will be useless imo. That’s not insurance, and IOU of gold. It has to be on hand. For the new system if this one ends suddenly. It would be like 1934 when they banned gold ownership, revalued the Dollar down 70% to get prices up and started a new game or round of printing for WW II etc.