Why is the price of gold being manipulated down? Then ask yourself what happens when this implodes?
David DeGerolamo
Something Just Snapped At The Comex
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.
We showed this record surge in gold claims as follows:
I am no economic wizard, but what this article is saying is that anyone invested in paper gold, Is invested in nothing, since there is not enough gold to cover what people have bought. Am I right?
The manufactured collapse of gold due to hypothetication signals the collapse of fiat currency worldwide.
How does a currency collapse as long as people have “confidence” in said paper? And then of course we have laws that require creditors to accept “dollars” as payment which helps continue the system.
To answer the question…..to allow Central Banksters and the very rich to buy gold at a cheap price. What do I win?
One more thought…
If one makes money by selling paper gold and paper gold is based upon gold “holdings” and one increases gold “holdings” via hypothecation and or re-hypothecation then buying more gold allows for the issuance of more paper “gold” again lowing the price of gold allowing for more buying and more paper and so on. Oh and the same people perpetrating the fraud are the some ones who set the price of gold. Pure genius….evil genius be nevertheless genius.
“The love of money is the root of all evil” Amen Lord….amen.