South African market analyst Nicholas Biezanek reports that whatever is represented by the explosive increase in use of the "exchange for physicals" mechanism to settle gold and silver contracts on the New York Commodities Exchange represents, it is not drawing down the inventory of metal vaulted in London.
Biezanek, an associate of monetary metals futures market observer and GATA consultant Harvey Organ, notes that the EFP mechanism is on track to fulfill, at least nominally, thousands of tonnes of gold demand this year but the accounting provided by the London Bullion Market Association for gold vaulted in the London area is almost unchanged.
Biezanek speculates that China's undertaking to price oil futures in yuan will break the so-called petrodollar and the gold market soon.
Biezanek's analysis is headlined "The Imminent Endgame for Comex/LBMA/Petrodollar Hegemony" and it is posted in Word format at GATA's internet site here:
http://www.gata.org/files/Biezanek-EFPs-06-04-2018_0.doc
