London to Dubai will result in a major default somewhere on an obligation to deliver gold. After that, paper gold (futures, GLD, etc) will collapse, and physical gold will soar."

Questions come to mind - how will the price of gold be determined, where will the trading take place, and in what currency? Will the COMEX shorts default, and if yes, what are the ramifications of that? (And if they don't default, how would they cover?)

Will the same happen to silver?