It seems to me that the LBMA is working its way through the list of client banks that have an allocated gold custody arrangement with them. They have started with the smaller banks and will end with the big ones like Deutsche bank, UBS and Credit Suisse.

It is amazing how easy it seems to get rid of the ABNAMRO and Rabobank allocated gold clients. I don't think it will work that way with a large part of UBS and Credit Suisse clientele, which consists for a significant part of Asian and Arabian clients, who will not leave the allocated gold arena just like that. Either these clients` existing allocated gold accounts will be backed by another custodian (the UBS seems to be creating a warehouse in Singapore) or these clients will leave the bank to get their physical gold or allocated gold accounts somewhere else.

The unwanted effect of allocated gold clients being waken up on the paper status of their holdings may be a rush into certified physical, which will either drive the price of gold back up fast or deplete the last physical stocks at the LBMA. Either way, the end of the LBMA seems near.