Swiss brokerage adopts GATA's view of imaginary 'paper gold'

More evidence that GATA's understanding of the gold market is increasingly shared comes this week from the Swiss brokerage house EFT Financial Products in Zurich, which, in a brochure marketing its new gold-related products, notes that much if not most of the gold the Western world thinks it has is only imaginary "paper gold." Page 12 of the brochure says:

"Gold is excessively leveraged via the OTC and futures markets. Whilst many commodities are rarely settled physically, as it would be impractical, we could see a surge in demand for delivery of physical gold during a financial crisis. With the current 92-1 leverage in the markets, should 1 percent of investors request physical delivery, then the whole system would come under considerable strain."

GATA has been working on exactly that, and now maybe EFG is too. Its gold products brochure has been posted here:

http://www.gata.org/files/EFGFinancial-GoldProducts.pdf