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Something Just Snapped At The Comex (Updated)

Tyler Durden's picture




 

Update: Earlier today, we said that we would "keep a close eye on today's Comex update to see if JPM reverses this "adjustment" and adds at least a few more tons of deliverable gold to its vault." Moments ago we got the daily update form the Comex and not only did JPM not reverse its registered to eligible adjustment, but more curiously, the second largest vault, that of Scotia Mocatta (behind only HSBC) saw a comparable adjustment, whereby 16,644 ounces of gold, or about half a ton, and 14% of its vault total, were adjusted away from "registered" and into the "eliglble" category.

This means that the already record low total registered holding across the Comex system, declined once again this time by 8.3% and hit a new all time low of 185,315, or less than 6 tons.

 

This means that what was already a record dilution factor, with over 200 ounces of paper gold claims for every ounce of deliverable gold, just soared even more, and following today's 8% drop, there is now a unprecedented 228 ounces of paper claims for every ounce of deliverable "registered" gold.

 

For those who missed the full story from earlier today, please read on.

 

* * *

Just over one month ago, when looking at the latest changes in registered gold held at the Comex ,we were stunned not only by the collapse in this series to a record low of just over 350k ounces or barely over 10 tons, but also by the surge in "gold coverage", or the amount of paper gold claims on physical gold, which exploded to a record high 124 per ounce.

This is what we said on August 3:

While on its own, gold open interest - which merely represents the total potential claims on gold if exercised - is hardly exciting, as we have shown previously it has to be observed in conjunction with the physical gold that "backs" such potential delivery requests, also known as the "coverage ratio" of deliverable gold.

 

It is here that things get a little out of hand, because as the chart below shows, all else equal, the 43.5 million ounces of gold open interest and the record low 351,519 ounces of registered gold imply that as of Friday's close there was a whopping 123.8 ounces in potential paper claims to every ounces of physical gold.

 

This is an all time record high, and surpasses the previous period record seen in January 2014 following the JPM gold vault liquidation. 

 

Another way of stating this unprecedented ratio is that the dilution ratio between physical gold and paper gold has hit a record low 0.8%. Indicatively, the average paper-to-physical coverage ratio since January 1, 2000 is a "modest" 19.1x. As of Friday it had soared to more than 6 times greater.

One month ago we showed this record surge in gold claims as follows:

 

But if last month was shocking, then what the COMEX revealed yesterday was absolutely jaw-dropping.

Here is the most recent update provided by the CME on eligible and registered gold.

 

What it reveals is that while JPM saw another 90,000 ounces of gold once again withdrawn from its vault, this time in the eligible category, for some reason a whopping 121,124 ounces of registered gold were reclassified as eligible. In doing so, JPM's registered gold (red line in chart below) tumbled to a record low of just 19,718 ounces - an 86% collapse in just one day -  and well under 1 ton of gold, some 600 kilos of physical gold available to meet delivery requests to be specific!

 

JPM's dramatic adjustment also meant that total Comex registered gold has likewise tumbled to the lowest in history of just 202,054 ounces - just over 6 tons - available for delivery.

 

Zooming in only on the registered gold since 2014:

 

Not surprisingly, the latest collapse in registered gold took place while the gold open interest remained flat, and in fact has been modestly rising in the past year as seen below:

 

Which brings us to the punchline chart: the Comex gold "coverage" ratio, or the amount of paper claims for every ounce of physical. As of Friday this number was literally off the chart (it would not have fit on the previous chart shown up top), soaring to a mindblowing 207 ounces of paper gold claims for every ounce of deliverable gold. This also means that the dilution ratio between physical gold and paper gold has hit a new all-time low of just 0.48%!

 

And while we know what caused this epic surge in potential claims on gold - namely the relentless outflow in registered gold - what we don't know is whether this is a systemic event, one which threatens the next Comex gold delivery request with an "insufficient product" response, and a potential default, or simply a one day abnormality.

What we do know is that, if only for one day, something at the Comex has snapped.

We will keep a close eye on today's Comex update to see if JPM reverses this "adjustment" and adds at least a few more tons of deliverable gold to its vault, and if not, perhaps a phone call or two may be in order.

 

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Wed, 09/09/2015 - 11:35 | 6526739 Maplehood
Maplehood's picture

And gold is down $10...

Wed, 09/09/2015 - 11:42 | 6526767 Cow
Cow's picture

yes. now down even more.  makes sense /s

premium for 20 oz quantity of eagles is now $50 over spot

Wed, 09/09/2015 - 11:44 | 6526782 Bokkenrijder
Bokkenrijder's picture

Is China retaliating for all those unexplained chemical warehouse explosions and stock market sell offs?

Wed, 09/09/2015 - 11:48 | 6526829 NoDebt
NoDebt's picture

"what we don't know is whether this is a systemic event, one which threatens the next Comex gold delivery request with an "insufficient product" response, and a potential default, or simply a one day abnormality."

They'll just settle in cash when (if) the gold runs out.  

Anyone new to ZH should realize this has been going on with COMEX to one degree or another for a LONG DAMNED TIME.

Wed, 09/09/2015 - 11:49 | 6526836 Pinto Currency
Pinto Currency's picture

 

 

IN gold, extreme shortage leads to price collapse

Wed, 09/09/2015 - 11:51 | 6526849 whotookmyalias
whotookmyalias's picture

In years past this crap would have gotten people hanged or worse. Today it's just SOP.

Wed, 09/09/2015 - 11:58 | 6526874 giovanni_f
giovanni_f's picture

That was before the merger of Skynet and The Matrix.

Wed, 09/09/2015 - 11:59 | 6526885 negative rates
negative rates's picture

I'm surprised that 1 cubic ft of gold even made the news.

Wed, 09/09/2015 - 12:04 | 6526905 Pladizow
Pladizow's picture

This doesnt matter until more than 0.48% stand for delivery!

Wed, 09/09/2015 - 12:12 | 6526945 Soul Glow
Soul Glow's picture

Hey now we can trust them!  They're bankers!

:)

Wed, 09/09/2015 - 12:19 | 6526970 Pinto Currency
Pinto Currency's picture

 

 

Expect 1M oz to be added to the registered Comex inventories.

It's just a number.

 

Infinite paper suppy of gold and silver available. 

You want paper metal, you can have paper metal.

Wed, 09/09/2015 - 12:23 | 6526986 SWRichmond
SWRichmond's picture

So JPM moves metal from Registered to Eligible, making this number all the buzz, then they proceed to show why it doesn't matter by moving metal from "Eligible" to "Registered"?

Just another manipulated metric?

Wed, 09/09/2015 - 12:32 | 6527042 Pinto Currency
Pinto Currency's picture

 

 

Why would this number be real?

Silver physical market is locking and so is the gold market.

But the paper gold and silver markets will have infiinite supply.

 

Wed, 09/09/2015 - 12:57 | 6527142 Four chan
Four chan's picture

exactly, the absolute fools in the paper market should get into real and leave the manipulators their manipulations worth less than nothing.

Wed, 09/09/2015 - 13:42 | 6527411 MillionDollarBonus_
MillionDollarBonus_'s picture

I'm getting bored of these gold and silver conspiracies. The international gold market is absolutely enormous, and the idea that a small group of entities could manipulate a market of this size is simply ludicrous. It's shameful that this conspiracy nonsense continues after many people have lost entire fortunes by following the advice of goldbugs. Mining stocks are probably one of the worst performing assets out there, yet goldbugs continue to promote them. Haven't people lost enough money trading this dead market? Why can't you people just let it go and join the real world of investing? There are fantastic opportunities in stocks and bonds, yet you people are fixated on this tiny worthless market? WHY?

Wed, 09/09/2015 - 13:54 | 6527473 agent default
agent default's picture

A bit like LIBOR and FX right?  Oh wait.

Wed, 09/09/2015 - 14:31 | 6527657 coinhead
coinhead's picture

Why take teh chance you will be teh lucky boy who receives his g0ldcoin from Comex?  Buh your Bitcoin and take delivery of them today!

https://localbitcoins.com

Wed, 09/09/2015 - 15:24 | 6527963 Next to Arch Stanton
Next to Arch Stanton's picture

I typically enjoy MDB posts - usually pretty creative.  This one rubbed salt in an open wound as I have taken an ass-pounding on mining stocks.

Wed, 09/09/2015 - 15:33 | 6528005 agstacks
agstacks's picture

The real MDB is/was creative, and used brilliant satire; this is just common trolling. 

Wed, 09/09/2015 - 15:51 | 6528070 BaBaBouy
BaBaBouy's picture

NOW 228 CMX PAper To 1 PHYS GOLD...

All Hell, Lets Go 350 To 1, What Da Feck...

Weeee... This Is Funn...Lets Skate On Even THINNER ICE...

Wed, 09/09/2015 - 15:55 | 6528168 ilion
ilion's picture

"...perhaps a phone call or two may be in order."

best joke of the day. 

Wed, 09/09/2015 - 17:04 | 6528571 Squid-puppets a...
Squid-puppets a-go-go's picture

you watch. as of tomorrow they will no longer publish the series

 

Wed, 09/09/2015 - 21:27 | 6529490 Lore
Lore's picture

What is the cover ratio of paper cattle futures to real cattle? 

Wed, 09/09/2015 - 22:17 | 6529662 philipat
philipat's picture

This has all become SO obvious and it is clear that "They" don't give a rat's ass what "You" think because they have The Fed, The Treasury and the "Regulator" behind them. Pushing Gold down by $20 whilst dumping massive amounts of naked paper Comex Shorts is the equivalent of a giant "Fuck you". They don't care and they won't stop until the system collapses, they are "All in" balls to the wall on Gold. Gold WILL NOT be allowed to rise until after the system collapses IMHO.

Wed, 09/09/2015 - 23:37 | 6529930 jeff montanye
jeff montanye's picture

same folks or ones just like them were in charge from 2000 to 2011 and gold and silver rose a lot.

market prices fluctuate.  the stock (etc.) doesn't know you bought it.

Thu, 09/10/2015 - 02:14 | 6530231 The9thDoctor
The9thDoctor's picture

It's shameful that this conspiracy nonsense continues after many people have lost entire fortunes by following the advice of goldbugs. Mining stocks are probably one of the worst performing assets out there, yet goldbugs continue to promote them. Haven't people lost enough money trading this dead market? Why can't you people just let it go and join the real world of investing? There are fantastic opportunities in stocks and bonds, yet you people are fixated on this tiny worthless market? WHY?

I've been enjoying Million Dollar Bonus_'s satire for years.  However I truly agree with his post today.  I'm more interested in income producing assets than stocks though, but the gold and silver market is for total fools.

Wed, 09/09/2015 - 16:02 | 6528218 Tarshatha
Tarshatha's picture

Yawn, the steam roller is almost here.

Wed, 09/09/2015 - 17:01 | 6528555 g speed
g speed's picture

so what is it then---enormous or tiny---the gold market I mean----you're a dumb shit MDB-----

Wed, 09/09/2015 - 23:47 | 6529949 jeff montanye
jeff montanye's picture

well it's both: absolutely enormous and tiny and worthless, depending on what is needed.

 

Wed, 09/09/2015 - 23:58 | 6529976 MontgomeryScott
MontgomeryScott's picture

@ g,

 

EXCELLENT tracking and intelligence skills are worth a lot. A SHITLOAD, in fact.

I'd almost forgotten about 'Mellion Dollar Bogus' (et.al). I am thankful for your rememberance.

I respectfully disagree with your conclusions. 'MDB' is NOT a 'dumb shit'.

MDB is a DIPSHIT.

There IS a difference, you know.

 

Wed, 09/09/2015 - 23:38 | 6529933 MontgomeryScott
MontgomeryScott's picture

... as that 'mechanical man' android thingie that I have grown fond of is used to saying:

"OH, SHIT!"

https://www.youtube.com/watch?v=oWoPdZ986oo

 

The CO(mmodities). M(etals). EX(change) (INC., Ltd., etcetera) is gonna go DOWN.

(YAWN, says you)

A steam-powered madacam roller really has NOTHING to do with this story, or the insight that is being given free of charge to those such as yourself (because you predicted it already, you 'fart smucker'!).

Your 'avatar picture' reminds me of a targeting practice scenario where I was given three black dots to focus my open sights upon. 72 weeks on ZH, and STILL you JUST DON'T GET IT.

TEOTWAWKI.

I feel fine, thoough.

https://www.youtube.com/watch?v=Z0GFRcFm-aY

Tyler Durden with a skateboard (as a child), with his dog, in a ramshackle house that used to belong to someone he knew a long time ago, had as much fun as this video depicts.

(YAWN, says you)

COMEX is gonna fucking SNAP and CRASH IN FLAMES.

You're not 'from around here', are you?

 

 

 

Wed, 09/09/2015 - 13:56 | 6527484 bbq on whitehou...
bbq on whitehouse lawn's picture

Credit.

Wed, 09/09/2015 - 14:02 | 6527500 tmosley
tmosley's picture

"I'm getting bored of these gold and silver conspiracies."

Note the period at the end of that sentence.

So are we all, MDB, so are we all.

Wed, 09/09/2015 - 14:03 | 6527502 JimS
JimS's picture

My God, you're a dumbass. I would be practising my target shooting, if I were you.  :)))) You do know how to handle a weapon, correct?

Wed, 09/09/2015 - 15:34 | 6528015 cooky puss
cooky puss's picture

It's MDB, second to none in extreme sarcasm! Boy did he deliver with that one.

Thu, 09/10/2015 - 00:58 | 6530116 MontgomeryScott
MontgomeryScott's picture

That really SAD part is that YOU think that it's (he's, she's) KIDDING.

Is this Helen Chenowith or Mr. Yellen's avatar?

TELL US, Mariah Angelou/Hillary Rodham!

https://www.youtube.com/watch?v=vN3R-Ivd8yA

 

YOU are fucking with the primordial powers of the UNIVERSE.

(What was that guy's name in the movie 'Network'? "Mr. Beale"?)

'It's MDB, "SECOND TO NONE"!'

FUCK YOU. (Seriously)

I get my news from Brain Williams over at PMSNBC, Ms. Palin!

Wed, 09/09/2015 - 15:22 | 6527944 BurningBetty
BurningBetty's picture

When they can move FX-markets in either direction then moving price of gold in either direction would be the equivalent of letting a fart out. Gold market is tiny compared to FX market. It's like non-significant.

Wed, 09/09/2015 - 17:49 | 6528752 Calmyourself
Calmyourself's picture

I don't get it, your saying some idiot holding paper gold at 200/1 deliverable is supposed to be scared now that it is 228/1, is that about it?

He is already an idiot, nothing worries him the fed has his back ask him..

Wed, 09/09/2015 - 17:00 | 6528554 Sages wife
Sages wife's picture

Hey,MDB_,or whoever the fuck you are, which is it?

-"The international gold market is absolutely enormous, and the idea that a small group of entities could manipulate a market of this size..."

-"...yet you people are fixated on this tiny worthless market."

Wed, 09/09/2015 - 17:04 | 6528573 g speed
g speed's picture

ya beat me by one minute ---shucks

Wed, 09/09/2015 - 20:07 | 6529230 Trogdor
Trogdor's picture

I'm getting bored of these gold and silver conspiracies.

JesusChrist .... didn't we spray for you?

Wed, 09/09/2015 - 13:05 | 6527186 SumTing Wong
SumTing Wong's picture

Anyone want to pass the hat so that we can buy up that last 6 tonnes this afternoon?

Wed, 09/09/2015 - 15:13 | 6527896 Magnum
Magnum's picture

Yes I can confirm you are correct.  There is a break in the spot price of silver vs actual price over the counter.  There is no real supply at even $6 over spot.  I have been in the market several years and I've never seen it quite like this but it's just the last two weeks or so.  A month ago, spot was nearly the same as today, and there was still LOTS of inventory to buy at $3 or $4 bucks over spot.  Now there is no inventory and we're talking $6 over.  So the next few weeks will be interesting.

Wed, 09/09/2015 - 16:25 | 6528374 actionjacksonbrownie
actionjacksonbrownie's picture

$2 over spot for generics, and $4 over spot spot for Maples at SGB. Buy all you want with no wait - they are in stock.

Thu, 09/10/2015 - 00:30 | 6530058 MontgomeryScott
MontgomeryScott's picture

SDBearings still has some of the best service. Maple Syrup is very good on pancakes.

It's coming up on 'last call'.

https://www.youtube.com/watch?v=97ECZMvbLxg

'I'm gonna tell you a story,...'

'Everybody funny. Now, YOU funny TOO!'

Thu, 09/10/2015 - 01:47 | 6530196 Magnum
Magnum's picture

actionjacksonbrownie.  Thanks for the mention re: SilverGoldBull I was not familiar with them becuase I usually buy from a local coin shop.  SilverGoldBull is actually out of Canada maples, go to their website and try to order.  They tell you the ship date is around September 19.  So you have to get on a waiting list deal there.  They have a Canada silver coin with a privy mark for an extra $1 per coin (getting to about $6 over) and that's in stock with no wait.  Ebay is a good indicator, and inventories are extremely low today compared two a month ago.  Locally, supplies are basically gone from displays.  No real inventory to speak of.  Will be an interesting few weeks ahead.

Thu, 09/10/2015 - 00:17 | 6530026 MontgomeryScott
MontgomeryScott's picture

A week ago, I paid $4.99 over 'spot'. The trend in PHYZ will accelarate rapidly from now on, I think, Magnum.

AS AN ASIDE:

Every time I see the BBC "presenter" 'Jane Standley', I seem to have an issue with 'premature ejaculation (demolition)' within a 22-minute timeframe. Would you consider changing your Avatar to 'Allotah Vagina' instead? i could probably maintain my #7 erection for a whole day's time period with this one!

 

Wed, 09/09/2015 - 12:25 | 6526999 viahj
viahj's picture

i'm all for PM price suppression at this point as i am not a trader but an aquirer and it allows me to receive more ozs for my FRNs. take advantage of USD strength (artifical or not) and aquire tangible assets.  this extra time is to your advantage as the end game is upon us. 

Wed, 09/09/2015 - 16:01 | 6528214 Oldwood
Oldwood's picture

If the markets do not distinguish or differentiate paper gold from metals, then it would seem that gold "printing" would ultimately be deflationary to gold prices, pushing down paper as well as metal prices. Even though we all know the difference, will a trader give a fuck if their "holdings" are paper or metal...going up or down. Sure, once we have seen the ever coming but not ever quiet here yet "collapse", maybe then those holding physical will prosper, but until then, their metal is being devalued like those who hold paper gold or paper dollars.

The world has rotated from productivity as the primary path to wealth, to gambling. All that matters is placing the bet, not whether the supposed "asset" they hold is actually worth anything enduring or useful.

Wed, 09/09/2015 - 12:28 | 6527017 BaBaBouy
BaBaBouy's picture

207-1 Comex GOLD Coverage Ratio...

Of Course, If you DARE ask For CMX GOLD delivery, you will quickly have a fatal "Nail Gun" Accident...

Wed, 09/09/2015 - 12:20 | 6526977 BaBaBouy
BaBaBouy's picture

LOL...........MATH

So Now 1 PHYZ Ozs GOLD = $228,942 Paper Fiats...

Wed, 09/09/2015 - 13:06 | 6527189 TeamDepends
TeamDepends's picture

Luvin' it! And an ounce will be worth more than that when the sheeps realize a ponzi dollar is worth AT MOST zero. Can not wait for the Sham-Wow COMEX charade to implode.

Wed, 09/09/2015 - 15:30 | 6527991 BurningBetty
BurningBetty's picture

I am not being negative or anything but I would like to state one thing that we goldbugs tend to forget from time to time. We always forget that debt has colleteral in other things then just PM. Producing businesses, other commodities, potential workforce etc. All this can be used as colleteral for the issued debt. We goldbugs hope that absolute ALL issued debt in existence should be pegged to gold and silver only. That just won't happen. If the price of gold was to hit $200k+ per ounce, that would be historical level on every level. You'd only need like 2-3 ounces to get yourself a solid home in todays market. On average, a medium sized 80sqfeet home has averaged some 200oz of gold for the past century. I mean, by all means, I wouldn't mind one bit if I could use my gold and silver to go on a spree and buy entire streets...I just don't think it will ever happen.

Wed, 09/09/2015 - 17:31 | 6528694 WhackoWarner
WhackoWarner's picture

@ BurningBetty

"I am not being negative or anything but I would like to state one thing that we goldbugs tend to forget from time to time. We always forget that debt has colleteral in other things then just PM. Producing businesses, other commodities, potential workforce etc. All this can be used as colleteral for the issued debt. We goldbugs hope that absolute ALL issued debt in existence should be pegged to gold and silver only. That just won't happen. If the price of gold was to hit $200k+ per ounce, that would be historical level on every level. You'd only need like 2-3 ounces to get yourself a solid home in todays market. On average, a medium sized 80sqfeet home has averaged some 200oz of gold for the past century. I mean, by all means, I wouldn't mind one bit if I could use my gold and silver to go on a spree and buy entire streets...I just don't think it will ever happen."

 

I defy you to live in an 80sqfeethome.   Betty Betty.  and one that has averaged 200oz of gold?   Think of the amount of dusting and vacuuming in an 80sqfeethome.  And where do you put the dog?

Wed, 09/09/2015 - 18:49 | 6529009 BurningBetty
BurningBetty's picture

I meant meters :-)

Wed, 09/09/2015 - 17:21 | 6528649 Sages wife
Sages wife's picture

That means that 1,314 tons, or 42.066 million ounces have been sold that don't exist. Significant unfunded liability. Makes elevated premiums not that big of a deal. Was going to go downtown and make a purchase but none available where I shop. Hard to get.

Wed, 09/09/2015 - 13:06 | 6527193 Sudden Debt
Sudden Debt's picture

In a way, gold is now at 200.000 dollars per ounce ;)

 

And yet the price is down 2%.... miners are getting gangbanged again... 

 

We sure do live in a economics 101 world where demand and supply work in tandem...

 

Wed, 09/09/2015 - 13:30 | 6527351 Tarzan
Tarzan's picture

Exactly, Stackers should be dancing in the streets,

the chart shows their physical is now worth as much as 200x more then the Bankers claim. 

When the Comex fails, so will confidence in the Banks, their only real asset.

Puff,   "And, It's Gone"

Wed, 09/09/2015 - 14:10 | 6527534 bbq on whitehou...
bbq on whitehouse lawn's picture

It shows you demand for a product that models gold without being gold. Its a computer game and computers need a product that they can play games with. A lump of metal is not profitable to play games with.
Derivitives by their nature are abstract models based only in math and imagination. As long as the models work, when either imagination or the math fails so do the derivitives that are built on them. Trading pictures of comic books are not the same as the comic books themselves yet here we are.

Wed, 09/09/2015 - 14:54 | 6527806 astoriajoe
astoriajoe's picture

I gotta wonder how many parties have bought contracts just to troll the comex. There's gotta be at least a few, especially given this crazy ratio. 

Wed, 09/09/2015 - 16:11 | 6528281 Oldwood
Oldwood's picture

Gold is worthless to anyone but another gambler. If things get so bad that your gold is "worth" that much, we will be in the middle of Zombie Land, and the only metals worth holding will be lead and brass.

It's truly a fucked up world where gamblers line up behind their bets hoping for Armageddon in order to "profit". Haven't we seen enough destruction from this kind of mentality already? We have a world government willing to burn it all to the ground to protect their power and ideology.

Wed, 09/09/2015 - 17:03 | 6528569 Tall Tom
Tall Tom's picture

First this report is just a demonstration of the fraud, Oldwood. That is THE REASON why the system NEEDS to burn to the ground, Oldwood. It is not to profit. It is to DESTROY the FRAUD and Corrruption.

 

THERE...IS...NO...FIXING....IT.

 

Next it is NOT SURPRISING that the "price of Gold" declined as "the price of Gold" is NOT "the price of Gold".

 

The reported price of Gold is ONE ONE HUNDRETH the price of a Gold Futures Contract.

 

When the SUPPLY of CONTRACTS increases, and demand for the contracts are stable, then the price for a CONTRACT DECLINES.

 

This is BASIC Economics 101...Supply-Demand-Price.

 

This report basically informs you that the supply of CONTRACTS has increased.

 

Finally GOLD IS MONEY. It is not a "Gambling Chip". We never really left the Gold Standard. We allowed the CURRENCIES to float against Gold. That is the REASON WHY Central Bankers are so interested in storing it in their vaults. They know what money is, Oldwood. Do you?

 

It is best that you find out before it is too late for you.

Wed, 09/09/2015 - 17:41 | 6528729 Dancing Disraeli
Dancing Disraeli's picture

But, but I was told Central Banks kept gold out of tradition!

Wed, 09/09/2015 - 18:00 | 6528762 Oldwood
Oldwood's picture

Gold is only money when it is a stable form of exchange. When it is used primarily for speculation, it becomes a chip, and that is what paper gold is demonstrating.

IF gold were only money, there would be no paper gold, there would be no speculation. In a time when gold WAS money, it was not speculated on. Its value remained largely constant at least in a person's lifetime. Not today. Banks hold gold in there vaults (the few that do) as a hedge, a chip. Our greatest threat is not the value of our chips OR money, it is our government, one that can outright outlaw the exchange of gold as money, who can tax it by virtually 100% if it decides to do so. A government that will crush any competition to its power and its currency of power. If you think they are going to simply set back and let anyone else's view of justice or fairness or even economic theory displace theirs, you are in delirium. That have worked for centuries to get this trap set. They have worked across borders and cultures to create a financial containment that ensures virtually no one will be able to escape. We might as well be hoping for cold fusion as to expect GOLD to have its way over what we face. If it were only so simple.

And to suggest that the majority holding gold and WISHING for a financial collapse are not doing it out of speculation, in hopes of rotating to the top of the relative wealth pile, then I would suggest YOU are not paying attention.

Any Idiot who thinks that somehow society or humanity is somehow going to survive this meltdown and come out the better for it is ABSOLUTELY DELUDED.

It will be hell on earth, and the last thing anyone except the most broken and tiny minority will be thinking about is the deserved justice Jamie Dimon gets in the end. It will be a hell storm that only an idiot would hope for. We have seen nothing like it short of possibly biblical times. We have hundreds of millions of people who have not one clue how to survive such a thing and as such will be a incredible threat to the few that do.

Wed, 09/09/2015 - 18:02 | 6528801 scrappy
scrappy's picture
Why Money Need Not Be “Tangible” - Martin Armstrong

http://www.armstrongeconomics.com/archives/36942

Money: What Is It? What is Interest? What is the Wealth of a Nation?

http://www.armstrongeconomics.com/archives/28070

https://realcurrencies.wordpress.com/2013/10/11/the-difference-between-d...

 

 

 

Wed, 09/09/2015 - 18:12 | 6528843 Oldwood
Oldwood's picture

Go out and buy a loaf of bread with gold and let me know how it works out for you. Money is a standard of exchange, not just something has has some standard of value....such as a loaf of bread. It is a useless argument to define money or currency when it is simple to see. Buy something with it, anywhere. Even foreign currency is not money if no one will take it where you are. Just because it has value somewhere to some one does not make it money. You can have a collectible gold roman coin that someone would place incredible value on, far surpassing its gold value. Is it money? Only in history.

I understand and empathize with the notion that by abandoning the gold standard we have been royally fucked...and still are. But that does not change the fact that a very very small percentage of people in this country or likely anywhere else would accept gold today as money. Most wouldn't even know what it was if you showed it to them. We might as well suggest that diamonds are money too as they have been used a currency by a few, and also have had a pretty stable value history. Maybe cubic zirconia could be the fiat equivalent.

Wed, 09/09/2015 - 19:20 | 6529111 Vlad the Inhaler
Vlad the Inhaler's picture

I would not count on gold to perform the function of money as a medium of exchange, however if you can somehow hide it, it should perform the function of money as a store of value, and then some.

Wed, 09/09/2015 - 23:11 | 6529862 The Proletariat
The Proletariat's picture

Money equals....awe nevermind.  Fuck it, I'm not going to waste any time....

Thu, 09/10/2015 - 00:18 | 6530030 Oldwood
Oldwood's picture

As with all other ideologies, gold bugs just want...no, NEED to believe. We are all looking for a safe store of wealth, but in case you haven't noticed, our currency, our financial world, has been undermined. The foundation is rotten and while gold will have its day, it's not something to look forward to as it will indicate the end of things. Financialization was a relatively small part of our overall economy in the last great depression. Currently, financialization is virtually everything. Products and production are meaningless, and with automation and advanced technologies, WE will likely become redundant once we can no longer function as the consumption engine of the world.

A world dominated by gold will be a dead world. Corporations will cease to exist and we will revert back to agrarian ways....and billions will die. Everything progressives have hoped for. And yes...there will still be those at the top living in hardened castles, occasionally thinking of those little people they still so desperately want to help.

Thu, 09/10/2015 - 04:48 | 6530355 RichardParker
RichardParker's picture

Financialization was a relatively small part of our overall economy in the last great depression...

"Brokers' loans reached four billion on the first of June 1928, five billion on the first of November, and by the end of the year they were well along to six billion. Never had there been anything like it before..."

https://books.google.com/books?id=YoXZWqBIIE8C&printsec=frontcover&dq=J....

BTW, did not junk your comments on this thread.

Thu, 09/10/2015 - 10:12 | 6530914 Oldwood
Oldwood's picture

So you are saying that financialization is not significantly larger now than then? We know it is what blew up the economy in 28, but what we face today is a much greater threat. Hundreds of trillions in derivatives that had not even been "invented" yet in 28 are hanging over our heads, not to mention the fact that EVERY consumption sales is dependent upon debt. There is NO cash economy.

Wed, 09/09/2015 - 12:13 | 6526947 AlaricBalth
AlaricBalth's picture

Fractional-reserve gold!!!  

Wed, 09/09/2015 - 12:49 | 6527043 astoriajoe
astoriajoe's picture

And just for reference, 1.5 minutes of Kyle Bass on comex delivery, comex audits, and fractional reserve gold. 

https://youtu.be/lgNVNTvlpFY?t=32s

 

Wed, 09/09/2015 - 13:08 | 6527203 Keyser
Keyser's picture

At this point, who cares what gold is priced at in USD terms... 

Wed, 09/09/2015 - 14:15 | 6527560 Herd Redirectio...
Herd Redirection Committee's picture

Yep, if you were thinking of selling your gold for USD, you've been 'doing it wrong'.  If you want to use gold to settle USD-denominated debt, post-collapse, then at least it is partially relevant.

Wed, 09/09/2015 - 16:25 | 6528373 ilion
ilion's picture

I think Tickmill is one of the largest gold brokers in Asian region. Could be part of the reason for lower gold stocks in New York at JPM vault.
http://www.marketwatch.com/story/tickmill-continues-to-deliver-top-level...

Wed, 09/09/2015 - 15:03 | 6527855 jcdenton
jcdenton's picture

I see your Bass, and I'm going raise you one Holter and Sinclair..

https://youtu.be/EmFl95J4PkQ

Holter: If, and [BIG] if Fort Knox has ~8000 tonnes of gold, physical gold (considering GDP to debt and total derivatives) gold = $50,000 / oz; minimum! Anything less than the purported 8000 it goes north of 50k proportionate per tonne, bar, etc. If no gold in Fort Knox, then physical gold is priceless ..

https://youtu.be/u7tTdO6oxUA

Sinclair: The coming [gold] rally is the one you don't sell. On the market and the economy, "It's all PSYOPs."

Wed, 09/09/2015 - 16:16 | 6528317 Oldwood
Oldwood's picture

As priceless as a Rembrandt....like anyone gives a fuck. I don't own gold now and I sure as shit ain't going to own it if it is priceless. The beauty of anything so rare as to be priceless is that it pretty much ensures than none of us needs it. I will never own a Rembrandt, and likely not gold, unless either become part of a monetary exchange system in which we all participate and utilize. Gold is pointless if the vast majority have none of it. Ask the Hunt brothers how much silver was worth when they tried to own it all.

Wed, 09/09/2015 - 22:46 | 6529771 Keyser
Keyser's picture

Some people get it, some don't... It appears Oldwood is in the later camp... Good luck exchanging worthless fiat paper for hard assets once the collapse happens... May (your) god have mercy on your soul when that happens... 

Thu, 09/10/2015 - 00:31 | 6530061 Oldwood
Oldwood's picture

Good luck exchanging gold metal for hard assets that can actually feed or cloth you. We will be much more inclined towards barter than some unscripted vague valuation of gold. If shit hits the fan (and it will) you will be better served by investing whatever "money" you have into real assets, something someone can actually use. Toilet paper is a better bet than gold. Otherwise, gold is still just another speculative play, hoping that you are setting on your pot o gold to quickly become the king of the hill when the shit hits the fan.

This mentality is the exact same as those who are printing fiat and debt while trying to buy up the world's assets with it. You think your gold will do the same after a crash, when in reality, the crash will be so large and devastating gold will be worth about the same as lead (if cast as a projectile). Your property will be defined by your ability to defend it, not what the value of gold is.

We will see. It is all "investing" and as we know, the wisdom of investing is always timing. Gold will have its day, a short one, followed by a very long night.

So I say good luck to all of us. If dreams of a golden "reset" let you sleep at night, more power to you.

Wed, 09/09/2015 - 12:34 | 6527053 TheFutureReset
TheFutureReset's picture

The end result of a gold standard. Separate money and State or this will be the result.

Wed, 09/09/2015 - 14:40 | 6527708 Hail Spode
Hail Spode's picture

I logged in to upvote you. Separate money and state because history shows that governments invariably try to get out of their obligation to keep money sound and substitute force for value. It has been going on at least since Rome started watering down its coinage. Government should have no power to issue money, no power to make anything a legal tender, and no role in limiting real money (metals). It should enforce contracts and keep bad money from other nations out. That is one of the 13 things we have to do to make sure government stays decentralized and in reach of the individual citizen. Leave any of those 13 doors open, and the state will, no matter how decentralized power starts out, consolidate until once again all decisions for 300 million people are made in one city. For the other 12 doors to be shut http://www.amazon.com/dp/B00B0GACAQ

 

Wed, 09/09/2015 - 16:16 | 6528312 FinalEvent
FinalEvent's picture

Seperate money and state.

You mean bitcoin?

(downvote to say I'm right)

Wed, 09/09/2015 - 16:21 | 6528352 xrxs
xrxs's picture

Thankfully with Bitcoin, paper and phys are the same thing.

Thu, 09/10/2015 - 14:49 | 6532219 Hail Spode
Hail Spode's picture

I don't count bitcoin as money. Real money has seven properties, one of which is that it would have value even if it were not being used as a medium of exchange. The value is a part of the money itself, and is not there just by agreement. PS- I predict the day will come when Bitcoin usesers discover that there transactions were about as secure as Ashley Madison users.

Wed, 09/09/2015 - 12:22 | 6526984 JimS
JimS's picture

Actually, it wouldn't matter if 100% stood for delivery. COMEX would hand everyone a check, to be cashed at your local bank. Of couse, there's a serious effort to abolish "cash". The "price" of gold could fall to a dollar. Would it make any fucking difference? Really?

Wed, 09/09/2015 - 13:00 | 6527165 UndroppedClanger
UndroppedClanger's picture

Wondering: if the institutions in question believed the value of money was about to plummet, would it not make sense for them to manipulate the market in such a way as to try and convince investors to accept the conversion of their claims on physical assets like gold to money while that money was still worth something, so the institutions get rid of all that bumwipe cash and keep hold of the bling before a collapse happens?

Wed, 09/09/2015 - 13:13 | 6527230 TheFutureReset
TheFutureReset's picture

The inflection point isn't after the registered is at zero, it's the few requests before zero, or the last couple of hundred kilos that will break it. If they were at 200 kilos and you had claim to 200 kilos, you'd want it out. Once they are at zero you want to support them in the hope you get your gold soon.  

Wed, 09/09/2015 - 13:58 | 6527489 JimS
JimS's picture

Of course, if someone wanted to give their gold, and pay me to do that. I would obliged to do it for them.  :))))

Wed, 09/09/2015 - 13:40 | 6527403 F0ster
F0ster's picture

With only 600 Kilo's of Gold, it would take many Chinese businessmen requesting delivery to end this pig.

Wed, 09/09/2015 - 18:26 | 6528914 agNau
agNau's picture

What did make the news is interesting. The grand stories of hundred ton gold treasure finds. First the finds off the coast of Florida. Then the gold train. Then the gold and jewel laden convoy once thought lost and now found.
Big tonnage of gold found. There is plenty of gold! ;)
Interesting timing.
* just today standing at the checkout and what do I see but Caitlin claiming to have found some long lost gold jewelry in the back of one of her drawers, under some panties and an old Olympic medal.

Wed, 09/09/2015 - 13:45 | 6527432 PTR
PTR's picture

And one of the Omnius incarnations. #Dune

Wed, 09/09/2015 - 23:01 | 6529813 omniversling
omniversling's picture

Apparently that's called Jade2 D-Wave Quantum Computing NetworkCentric control. Assume that the entire market top to bottom is now in virtual reality. Fully hijacked. Look at the 'job numbers' yesterday. Fiction inventivism. Central planners ARE GO! Anyone who refuses to accept it, will from now-on, be eliminated. This interview is a cracker. Look down on the right hand side of the the pate the the orange CTM logo (Caravan to Midninght) embed. Episode 309 and 364. 

http://level9news.com/

Then have a look at this. Think SIM inside a SIM inside SIM. Fascinating paralell 'singularities':

 

YOUR LIFE IS A COMPUTER SIMULATION

 

https://www.youtube.com/watch?v=YGxVGtkTa4s

 

The Subconscious & Superconscious Mind - Our Connection To The Source

https://www.youtube.com/watch?v=-qzS3etpTeY

We Are All One And Our Reality Is An Illusion

https://www.youtube.com/watch?v=ozEoF69f_SE


 

 

 

Wed, 09/09/2015 - 11:57 | 6526876 Xibalba
Xibalba's picture

People are stooopid.  They think the FED is 'da gubmint'. 

Wed, 09/09/2015 - 12:22 | 6526941 Bananamerican
Bananamerican's picture

with the global titanic popping rivets all over the place color me "not surprised'

"We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake. 

Therefore at any price, at any cost, the central banks had to quell the gold price, manage it."

 -Sir Eddie George, Bank of England, September 1999

"That day the United States announced that the dollar would be devalued by 10 percent. By switching the yen to a floating exchange rate, the Japanese currency appreciated, and a sufficient realignment in exchange rates was realized. Joint intervention in gold sales to prevent a steep rise in the price of gold, however, was not undertaken. That was a mistake" -Paul Volker

 From his memoirs, in reference to the revaluation of the dollar by the U.S. Treasury on February 12, 1973 (Volker was the Treasury’s undersecretary for international monetary affairs at the time)  November 2004:

Wed, 09/09/2015 - 12:28 | 6527015 JimS
JimS's picture

In reality "guelling the price of gold" is meaningless. The Central Bankers are on a new mission: abolish cash. They have bigger things to attend to, than worrying about "the price of gold". Their big concern is abolishing cash. Doing that, then they have the world's population "by the nuts" (so to speak).

Wed, 09/09/2015 - 13:21 | 6527286 TheFutureReset
TheFutureReset's picture

They can't get rid of "cash". At most they'll get rid of the current incarnation of cash, which will stimulate the creation of forms of money out of their control. Talk about your all-time backfires.  

Wed, 09/09/2015 - 13:53 | 6527468 JimS
JimS's picture

Yep. You are correct.

Wed, 09/09/2015 - 17:21 | 6528650 g speed
g speed's picture

just like the CIA's wet dream-     "unintended consequences"

Wed, 09/09/2015 - 13:52 | 6527466 JimS
JimS's picture

Hit the "g" instead of the "q". Sorry :)

Wed, 09/09/2015 - 12:48 | 6527112 maxamus
maxamus's picture

Then why are you fighting it?  Trade in reality, not what it "should" do.

Wed, 09/09/2015 - 12:09 | 6526927 LawsofPhysics
LawsofPhysics's picture

"IN gold, extreme shortage leads to price collapse" -- sometimes, not always.

However, the consequnces of a shortage in an essential commodity, like oil, or bread, or milk or water, brings about a different sort of real consequences....

tick tock motherfuckers.

Wed, 09/09/2015 - 12:34 | 6527052 JimS
JimS's picture

The price of an ounce of gold could "collapse" to $1, who the fuck would sell. There would be no sellers, thus no "market". I would buy all the ounces I could, at that price, or at prices higher than that. I repeat, no sellers, no fucking market.

Wed, 09/09/2015 - 12:48 | 6527106 JimS
JimS's picture

I had to give the "down" arrow. First: what's your definition of a "price collapse"? Gold falls $200, $400, $1000 from the current price? You must be more specific. Give me some parameters. Let you and I assume for a moment, that a price collapse, from current levels is, $500. Would you consider that to be a "collapse" in price? If so, I try to "buy" an ounce of gold for $611, from anyone. If no one will sell said ounce, there's no fucking "market". We have a "buyer" (me), but no seller. Thus the "price collapse" is meaningless, correct?

Wed, 09/09/2015 - 13:00 | 6527166 RickM
RickM's picture

I thought the price of gold would rise with a shortage of it.

Wed, 09/09/2015 - 17:21 | 6528644 Tall Tom
Tall Tom's picture

The reported price of Gold...IS...NOT...THE...PRICE...OF...GOLD.

 

There is NOT ENOUGH GOLD to back the Gold CONTRACTS.

 

Thus there are TOO MANY NAKED CONTRACTS.

 

There is an OVERABUNDANCE of CONTRACTS.

 

Thus the price for a CONTRACT DECLINES.

 

The CONTRACTS are UNENFORCABLE as there is not enough Gold to back them.

 

The price of an UNENFORCABLE CONTRACT IS ZERO.

 

And that is where the PRICE of a Gold Futures Contract is headed...ZERO...as they are WORTHLESS.

 

 

Wed, 09/09/2015 - 13:32 | 6527319 TheFutureReset
TheFutureReset's picture

"IN gold, extreme shortage leads to price collapse"

More specifically, "extreme PHYSICAL shortage leads to an extreme increase in PAPER supply, creating a downward pressure on price."

Of course, the item used to measure the price must be relatively stable. If the strength of the dollar rises faster than demand for gold, the price will appear to decline. It matters where you are standing. 

Wed, 09/09/2015 - 13:42 | 6527417 Groundhog Day
Groundhog Day's picture

Something snapped alright,  the support line

Wed, 09/09/2015 - 20:33 | 6529299 Enki Anu
Enki Anu's picture

In GOLD we trust,
Fiat will go to hell

Thu, 09/10/2015 - 02:33 | 6530243 TheRideNeverEnds
TheRideNeverEnds's picture

You got it, the less gold there is to deliver the faster people start selling their gold therefore the lower the price goes.

You don't want to be left holding the bad when there are no buyers left and gold officially goes to zero.

Why lock up your money in gold? The best you will do is break even over time. You can just as easily buy Facebook stock and get nothing but unlimited upside so why not?

Wed, 09/09/2015 - 11:54 | 6526857 lordylord2
lordylord2's picture

As of Friday this number was literally off the chart (it would not have fit on the chart below)

I laughed at this part.  Adjusting the axis range in Excel is pretty easy.

Wed, 09/09/2015 - 11:59 | 6526883 thatthingcanfly
thatthingcanfly's picture

And this diminishes the point Tyler was trying to make how?

Wed, 09/09/2015 - 12:10 | 6526932 giovanni_f
giovanni_f's picture

he's working for the fed. That's how they solve problems there.

Wed, 09/09/2015 - 12:49 | 6527109 KnuckleDragger-X
KnuckleDragger-X's picture

ND, the contract specifies a delivery of a particular commodity at closure and failure to deliver is subject to both criminal and civil sanctions. In this day and age the criminal part is unlikely, but a major civil action against the COMEX could be extremely expensive and could bring down the entire commidity market. Contract law is very settled and very nasty if your on the wrong end of an action......

Wed, 09/09/2015 - 15:45 | 6528081 agstacks
agstacks's picture

are you saying the COMEX cannot settle in cash? 

Wed, 09/09/2015 - 20:05 | 6529223 KnuckleDragger-X
KnuckleDragger-X's picture

Not unless the holder of the contract allows it. A breach of contract suite could cost them a buttload of money....

Wed, 09/09/2015 - 13:56 | 6527487 Mercuryquicksilver
Mercuryquicksilver's picture

Logically this means spot / diluation = value  (all in USD)

 

$1110 / .0048 = $231,250 per oz

 

Now it becomes evident why countries have killed for gold..... logically.

Wed, 09/09/2015 - 14:43 | 6527737 Slomotrainwreck
Slomotrainwreck's picture

pssst .. Merc. They don't understand.

Wed, 09/09/2015 - 15:21 | 6527941 Mercuryquicksilver
Mercuryquicksilver's picture

pssst .. Slo. I don't understand.

Wed, 09/09/2015 - 18:23 | 6528879 goldpercent
goldpercent's picture

Granted, I'm a simpleton, but shouldn't paper gold be at about 5 bucks?  Even that seems high given the probability of it going to zero.

Wed, 09/09/2015 - 21:13 | 6529434 gimme-gimme-gimme
gimme-gimme-gimme's picture

This time last year I recall tons of articles saying COMEX would default.

 

Considering COMEX is nothing but a casino, the house always wins.

Wed, 09/09/2015 - 12:03 | 6526901 klayton biggs bee
klayton biggs bee's picture

The Revolution will NOT be televised!

Wed, 09/09/2015 - 12:40 | 6527062 r101958
r101958's picture

Quid pro......got to pay somebody to buy the $100 Bln in USTs that China just sold--the gold makes up for the non existent interest being paid on them. Especially when the inflation rate is much higher than published by the gov't.

Wed, 09/09/2015 - 11:44 | 6526788 TSA Thug
TSA Thug's picture

If you complainers keep complaining I would not be surprised if Comex started settling in virtual gold aka Bitcoin.

Wed, 09/09/2015 - 12:28 | 6527019 lincolnsteffens
lincolnsteffens's picture

Oh, stop complaining!

Wed, 09/09/2015 - 12:32 | 6527034 Pool Shark
Pool Shark's picture

 

 

I don't complain.

 

I just say "Thank You," and keep stacking...

 

Wed, 09/09/2015 - 11:53 | 6526846 El Oregonian
El Oregonian's picture

LOL! Apparently I've got more in my private vaults! HaHaHa...er, that is,... until my very unfortunate boating accident....

Wed, 09/09/2015 - 12:11 | 6526939 Herodotus
Herodotus's picture

Try buying Austrian 100 Coronas (0.9802) or Mexican 50 Pesos (1.2057) same gold at much lower premiums.

Wed, 09/09/2015 - 12:25 | 6527000 Slurm
Slurm's picture

About $20 premium, incase others are wondering. 

Wed, 09/09/2015 - 22:36 | 6529728 Moe Howard
Moe Howard's picture

Below spot, with 4x ebay bux and CC 1% & FatWallet 1%..

Wed, 09/09/2015 - 13:00 | 6527164 FlacoGee
FlacoGee's picture

You need to find a better vendor.

Or better yet, save your money and wait for $500 gold in the next 24 to 36 months.

 

Wed, 09/09/2015 - 13:58 | 6527488 Jack Burton
Jack Burton's picture

My private gold source dried up. Now I must enter the real market to get physical. You ZH pros know how to not get raped trying to get some physical?

Wed, 09/09/2015 - 14:12 | 6527548 DirkDiggler11
DirkDiggler11's picture

JB:

Here is a good place to start ......

https://comparegoldprices.com/

 

Premiums can change quite a bit throughout the day in volitale trade. 

Wed, 09/09/2015 - 16:45 | 6528472 actionjacksonbrownie
actionjacksonbrownie's picture

Depends on which country you are in.

Wed, 09/09/2015 - 14:04 | 6527504 RaceToTheBottom
RaceToTheBottom's picture

Premium for 1 Kilo bullion of gold ranges from 2%-2.25%

http://goldprice.org/gold-prices/Gold-Bars.htm

 

Wed, 09/09/2015 - 11:43 | 6526777 lordylord2
lordylord2's picture

If I could sell 10 ounces 200 times over, I could retire tomorrow.  It sure is a different game for the wealthy.  I feel like i'm taking crazy pills.

Wed, 09/09/2015 - 13:25 | 6527313 SumTing Wong
SumTing Wong's picture

Now this man is thinking. He must have gone to one of them there fancy-pants Ivy League schools.

Seriously, I'll sell each of you bitchez 10 ounces of my 10 ounces of gold, as long as I can find it in the lake where I lost it. I'll hold onto it for safe keeping there at the bottom of the lake. And when you absolutely need it, we'll just trust that there will be enough for you. And if not...well, fuck you.

Think I could work at the COMEX?

Wed, 09/09/2015 - 13:48 | 6527442 JimS
JimS's picture

You're not Jon Corzine, are you?

 

Wed, 09/09/2015 - 14:01 | 6527497 Jack Burton
Jack Burton's picture

You are not crazy, you are the sane one! Welcome to the financialized world! Everything real has been recreated in financialized bizzaro world! That is why this whole system will crash, it is unreal, does not reflect the real world's ability to deliver wealth equal to that held in financial products and financialized commodities. When push comes to shove, trillions of financial paper wealth will be destroyed, along with trillions of unpayable debt. Bizzaro Wall Street will meet Super Man, the real  world of tangible wealth. Gold is only gold if you have it in your hand, if it's a promise it's a lie.

Wed, 09/09/2015 - 15:39 | 6528047 Moustache Rides
Moustache Rides's picture

+1000

 

Someone said yesterday, maybe it was you Mr. Burton, that there is nothing behind the market to support any more growth.  I agree.  We are at the end.

 

'No sir, the check is NOT in the mail'

Wed, 09/09/2015 - 17:09 | 6527805 Slomotrainwreck
Slomotrainwreck's picture

If I could sell 10 ounces (of Gold) 200 times over, I could retire tomorrow.

For the same value as your 10 coins, I'll prefer 700 Silver Eagles. Imagine what will happen with Silver which has approximately 4x fewer ounces above ground than Gold. meanwhile the recent Gold to Silver price is around 70 to 1. (it takes 70 oz Silver to purchase 1 oz Gold)

"About one billion ounces or 31,000 tons of silver exist above ground. There are approximately 120,000 tons of gold above ground, practically all that has ever been mined. This equates to a 4:1 ratio, or four times more gold than silver existing above ground."

Wed, 09/09/2015 - 11:42 | 6526780 mayhem_korner
mayhem_korner's picture

And gold is down $10...

 

Actually, if you apply the Comex GLD to gold ratio, gold is actually down $2,080 to $229,000/oz. 

 

Wed, 09/09/2015 - 11:45 | 6526804 LawsofPhysics
LawsofPhysics's picture

yes, but such things are irrelevant unless all those paper claims start seeking out the PHYSICAL asset...

in the meantime, same as it ever was...

Wed, 09/09/2015 - 12:00 | 6526888 Fester
Fester's picture

Patients grasshopper

Wed, 09/09/2015 - 12:06 | 6526915 LawsofPhysics
LawsofPhysics's picture

The last link between physical and paper was severed in 1971...

How much longer for fuck's sake?

Wed, 09/09/2015 - 12:55 | 6527137 Fester
Fester's picture

Gold and silver have been managed for much, much longer.  Less than a year.

 

May the green boxes be ever in your favor.

Wed, 09/09/2015 - 13:03 | 6527177 JimS
JimS's picture

LoP, that could go on for the rest of my lifespan, until it doesn't. It will be a "stroke-of-midnight" type of event. No warning (except to the chosen few). Arm yourself for that event.

Do NOT follow this link or you will be banned from the site!