Part 3/7:
A central theme of McLeod's insights is the distinction between the paper market and the physical market for gold. He notes that the common practice of "standing for delivery" in futures contracts often leads to the illusion of ownership without actual possession of physical gold. Instead, participants receive certificates indicating their claim to gold held in bullion bank vaults. This system is rife with risks, particularly as demand for actual gold has surged, with a significant increase in delivery requests observed in recent months—over 2,100 tons to date, a pace that suggests a looming crisis if the trend persists.