I estimate that as much as 50,000 tonnes of gold has been sold that does not
exist. That is equivalent to all the gold reserves in the world that are yet to be
mined, or put another way, 25 years of gold production. That is the grand-daddy
of all short positions! As physical market shortages lead inevitably to exposing
this scandal there will be the grand-daddy of all short squeezes and the grand-
daddy of a bull market in precious metals....but only in REAL physical precious
metals and quality mining equities, not paper promises for physical metals. It
would be a tragedy for an investor to have correctly identified the huge
investment potential to wind up with nothing. It would be like winning the lottery to
find that someone sold you a counterfeit lottery ticket!


Adrian Douglas
February 25, 2010