30/12/2012
It is a scam trying to make people believe that paper gold is the same thing as physical gold. At the end of the day, people in Asia understand from their culture that something they can hold in their hand is very different from some little piece of paper saying they own something.
“At some point in the future, whether it’s next year or the year after that, people who own paper gold are going to recognize they have counterparty risk. They don’t own gold, they only own exposure to the gold price and that exposure is dependent on their counterparty.