My bad for getting clearing houses or exchanges or whatever mixed up.

I was trying to make reference to the London Metals Exchange (LME), not the LBMA.

Anyway, Ted Butler has a more recent article (2006) where he suggests the same type of default could take place with silver. The following is from the article:

"What the LME has done in nickel is relieve the shorts of having to round up actual metal to deliver against their contractual promise to deliver, and unilaterally transferred the obligation to the longs, the industrial user. These industrial consumer longs (and other longs) entered into their nickel contracts voluntarily and legally, with the option of taking delivery. Now they are told, with no warning, they can’t take delivery and must secure metal elsewhere. The shorts don’t have to scramble for material they promised to deliver, the longs have to scramble for material they were legally promised to receive. Nothing could be more unfair."

http://www.investmentrarities.com/ted_butler_comentary08-21-06.shtml