Entering into April, the number of paper contracts per ounce of physical gold held by the U.S. Commodities Exchange (Comex) was at an all-time record of 542 to 1. And while this receded a touch during most of the month of April, by the end of the period it was not only back to 542 to 1, but it is now much higher from recent saturations and naked shorting.
Over the past two years, the Comex has seen its inventory of physical gold drop from several million ounces to now less than one million, and any real run on the vaults, or demand for delivery, would instantly collapse the gold markets, both in the paper realm and in physical.
And perhaps what is most astonishing is that for the first time in several years, the mainstream is now publishing news of this fraud.
Then starting in 2014 and trending to mid-2015, the number of registered “owners” moved strongly up, to about 100 per ounce, and then 300 per ounce. Note that this was also a period when Comex sold down significant amounts of physical inventory, from several million ounces in vaults to well under 1 million ounces.
By late 2015 and now into 2016, registered “owners” against Comex gold spiked to a nosebleed level of 542-to-1. Thus if even one claimant shows up for an ounce of yellow metal, the cupboard will be bare — and there are 541 other claimants as well!
“Uncovered” speculation has gone exponential. There’s lots of “paper” gold and almost no “real” gold, which makes for a high-risk scenario — certainly if you don’t hold gold. It’s high return if you do hold gold.
The cupboard is so bare for gold that Comex could collapse into the equivalent of a “run” on vaults. If that happens — rather, “when” that happens — watch gold prices spike. On that golden day of reckoning, you’ll see more than a buying frenzy or even a panic. It’ll be utter pandemonium.
When this bomb explodes, gold prices will melt upward in ways we can scarcely imagine. Instead of a few dollars up or down on the ticker, you’ll see hundred-dollar moves in a matter of minutes. Of course, it’ll be a good day for investors who own physical metal and a strong hand of mining shares. - Business Insider