I find this reference to 60,000 tonnes of gold sold by DB to allocated account holders, simply incredible. This would be about 17-18 times the total German gold reserves not 3 times and they can't even get the FED to send them back 300 tonnes in a timely manner. For sure the article says 60,000 tons but his must be a typo (maybe they meant 6000 tonnes which would still be a huge number).

We all know past references to gold being levered 100 to 1 as a result of a fractional banking approach applied by bullion banks (a quote from Jeff Christian from CFTC hearing comes to mind) and I always thought that was a somewhat excessive (also Chrisitian is not that believable to me whether golld bullish or bearish) given a hard asset like gold must underlie this mountain of paper while with fiat currency it's paper underlying paper, easy to do for the power brokers who control printing presses.

If this report is true, and a forced unwind were to happen meaning cash settlements or actual gold purchases to meet delivery obligations (it won't likely matter which happens), well the move higher would be incredibly swift and large. I just can't see them losing this much control but then again they did lose control for a brief period in the fall of 2008 and they knew all the data & what was happening with all the defaults of Bear Stearn, Lehman, Wamu, AIG, etc. (the list is long).