March 26th, 2013, 4:39 pm
Yes, thanks, this is true and well understood.This is an extreme scenario. An investor may not even be able to get access to his gold in a foreign country anyway..In the meanwhile, while waiting for an "extremely bad event", how is physical gold marked to market? Is ready at hand gold awarded a premium over contracts that bear counterparty risk? Is this premium growing?I'd also like to know when the gold that backs futures with physical delivery needs to be deposited. At expiry or close to the expiry date?Thanks!