“In 2011, the University of Texas investment committee took delivery of what was then just under $1 billion worth of gold. It had held the gold in the form of gold futures contracts. Kyle Bass persuaded the committee to take delivery. The statement that only 1% of futures contract holders (‘longs’) ever ask for delivery is significant.  Most people trade futures to make fiat money. They do not trade as hedgers who plan to take delivery. They are speculators. They want leverage. Futures give them this.  It is clear that if 4% (20% of 20%) ever want delivery, they will not be able to get it.  The rules will be changed, as they were when Bunker Hunt threatened to take delivery in 1979.”

http://www.garynorth.com/public/12045.cfm

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