A small number of clearing members handle the overwhelming majority of transfers. Concentration of that order is efficient until one participant has a bad week.
The March 2020 lesson
The dislocation then was not about demand for gold. It was about the ability to move metal between locations and formats at short notice. Very little about that constraint has structurally changed.
What would help
More published data on location swaps, transparent capacity for bar conversion, and a public account of what happened last time.
