“They (bullion banks) hold that little bit of physical gold and claim they are backed up on their position to the CFTC. I have all my large buyers now going to producers and saying to them, ‘Look, don’t sell it to the bullion banks, we’ll buy it from you.’ So we are buying directly from the producers and this includes some sovereign entities which are doing the same thing.
We’re struggling to get the physical out of these guys (producers) because they have so many people banging on their door, saying, ‘Sell it to us direct.’ What these buyers are doing is essentially taking gold out of the system, which means the bullion banks can’t leverage that gold anymore. So this is a huge, dynamic shift that wasn’t there before. Now we are working on one other thing. We’re beginning to offer them forward contracts. If you are a sovereign entity, what you are saying to these producers, especially on new projects is, ‘Why don’t you sell the gold to me in 12 months. Here’s the cash, just provide it to me 12 months from now.’ These buyers are now cutting off future gold supply from the bullion banks....

Of course this article is not official mainstream infomation, however I believe it to be true. Eric Sprott on another note had said he was going to go to the producers and recommend to them to keep all of their reserves in metal rather than selling it all and holding cash. KWN is obviously biased towards their strong opinion on the future of gold and as such their content strongly leans that way. However Eric King seems to be able to attract some pretty good interviews.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/12/20_London_Trader_-_We_are_Witnessing_a_Historic_Bottom_in_Gold.html