BIS gold swaps

http://uk.reuters.com/article/idUKLNE66F03J20100716

My take away: central banks are running out of gold, so in lieu of outright selling their inventory, they are swapping it out for currency, with the hope of recovering the gold in the future. If they default, the BIS keeps the gold bullion, similar to a pawn broker.

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Disclosure: long gold and silver, long precious metals mining shares.