he new rule is called "Net Stable Funding Requirement" (NSFR). It goes into effect by the end of June in Europe and by the end of the year in the UK where the London Bullion Market Association (LBMA) operates the biggest gold trading platform in the world.
The short story is this new BIS rule is going to stop paper contracts from conjuring supply of gold, silver and many other commodities out of thin air. Macleod says,
"That's what they do, and that is what is going to be stopped. For a long time . . . I think the American government has encouraged the growth of paper alternatives to gold in order to take demand away from the real stuff...
They said to the Bank of International Settlements that we can't have another Lehman Brothers. So, what's happened?