Sparky
18th January 2014, 08:43 PM
First, the 7-minute video in this Zero Hedge link will put a smile on the faces of many GSUS advocates of physical gold.
Second, take a look at the chart. Historically, there have been 10-20 times more gold futures contracts than deliverable COMEX gold. Look how this has shot up to 100:1 over the last year. I'm one who gets tired of the never-ending story of COMEX default, but this unprecedented imbalance seems to be telling. Now, keep in mind that COMEX has additional gold in store that they can "make" available, so I don't think there will be a default. But, the need for them to urgently do so would put the public spotlight on gold desirability and its relative scarcity.
Physical Gold Shortage Goes Mainstream (http://www.zerohedge.com/news/2014-01-18/physical-gold-shortage-goes-mainstream)
Second, take a look at the chart. Historically, there have been 10-20 times more gold futures contracts than deliverable COMEX gold. Look how this has shot up to 100:1 over the last year. I'm one who gets tired of the never-ending story of COMEX default, but this unprecedented imbalance seems to be telling. Now, keep in mind that COMEX has additional gold in store that they can "make" available, so I don't think there will be a default. But, the need for them to urgently do so would put the public spotlight on gold desirability and its relative scarcity.
Physical Gold Shortage Goes Mainstream (http://www.zerohedge.com/news/2014-01-18/physical-gold-shortage-goes-mainstream)