Tom welcomes Vincent Lanci back to the show. Vincent discusses the position of J.P. Mogan and Citibank, who hold a large gold derivative position. They've changed their balance sheet accounting methodology due to Basel III rules. Banks are going to take advantage of different countries regulations to arbitrage. The banks are in the same condition they we're in previously. The gold dealer market has become smaller, and regulators seem happy to herd these derivatives into one large bucket. Smaller banks have exited out of the market. In light of what has happened with nickel at the LME and the government will do whatever necessary to protect the major banks. As Keith Wiener says, "Gold is not like other commodities because it is not consumed. All the gold ever mined remains, still exists. It's not destroyed and doesn't become irretrievable." Gold is a useless item, which is why it's a great store of value. Money, including fiat, has no real practical purpose. At the central bank level...