Part 7/10:
While the immediate effects of Comax's delisting may seem minimal, with larger, more liquid contracts still untouched, specialized hedging strategies based on these delisted contracts face disruptions that could lead to increased volatility. The logistics behind moving gold from London to New York are complicated by the requirement to convert large bullion bars, which adds to the costs and delivery delays. This could mean that the pressure on physical gold continues to escalate, hinting at a possible shortage in London vaults.
As central banks stockpile physical gold, it's imperative to consider that they are preparing for unfavorable scenarios. The urgency to secure tangible assets reflects broader geopolitical concerns and rising global debt burdens.