Zero Hedge warns about a run on physical gold

According to Zero Hedge, Chavez run on physical gold may drain the banks of their physical assets, and thus result in a run on physical gold.  This would result in a parabolic rise in the price of gold, and as I suggested in an earlier post, if all the paper gold were to turn into demands for physical gold, the value of the dollar could drop to 1/56,000 of an ounce of gold.

Last week, Zero Hedge mentioned that CME increased margin requirements for gold traders.  This had an only temporary lowering effect on the price of gold; eventually, as margin requirements can be raised to the point that cash money will be able to buy gold or silver.  But this will not prevent the run on physical gold, in my opinion.

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