Gold Analyst Warns: “There Are About 325 Paper Ounces For Every Physical Ounce Backing It”

by | Dec 15, 2015 | Headline News | 55 comments


Back in September Zero Hedge reported that something snapped in the COMEX market and all indicators suggest there was a relentless outflow in registered gold. At that time there were about 202,054 ounces of gold available for delivery. To put that into perspective, Craig Hemke of TF Metals Report points out that just earlier this year there were nearly one million registered ounces available.

What this likely means is that someone, somewhere is requesting that their paper holdings be converted into deliverable physical gold. All the while many a mainstream pundit has declared that gold is nothing but a relic of times past. Yet, despite its purported unpopularity, since the last time the COMEX snapped in September even more registered gold has disappeared.

As of December, notes Hemke in his latest interview with Crush The Street, we’ve hit an all-time low in registered physical metal at the COMEX which has in turn led to a massive amount of leverage.

We’re at an all time low of about 120,000 [ounces of registered holdings].

But yet the total open interest- the amount of paper contracts based upon that declining amount of physical metal – has stayed the same.

Now, there’s about 325 paper ounces for every one physical ounce backing it. In the past that number was always around 10-to-1 or 20-to-1.

It’s another one of these data points that we follow that seems to indicate a global physical tightness.

In the full interview Hemke explains what this means for the gold market, as well as why the leverage in COMEX precious metals is significantly different than stock markets:

(Watch At Youtube)

Though the physical tightness, low amount of registered gold at COMEX, and potential for panic in global markets is very real, Hemke takes care to mention that even though COMEX is leveraged to historically obscene levels, it doesn’t necessarily mean we’re going to see a meltdown in the next few days or weeks.

It does not indicate that the COMEX is going to fail tomorrow.

I don’t know how far this ratio can be stretched. It’ll be interesting to see what the actual physical price is discovered to be once people actually begin demanding their physical metal.

Think of it as a game of musical chairs where there’s one chair representing an ounce of gold and there’s 325 people walking around that chair… they’re going to try to sit on it and pick up that ounce of gold should the music ever stop. And if the other 324 people that think they own gold all of a sudden realize “wait a second, I thought I owned gold.”

If all of a sudden they want to get their fill and they realize the world is just this gold pricing scheme with over-hypothication and over-leverage… when the world figures that out and the music stops so to speak, the price isn’t going to be $1075.

In coming years there is a real possibility that we will experience a monetary or market event. It may not happen tomorrow, as Hemke notes, but tommorow will eventually come.

When it does and the music stops we should assume that The Powers That Be have lost control of the system (or let it detonate on purpose). Some analysts like Marc Faber, Martin Armstrong and Gerald Celente have suggested that in this air of panic gold prices could rocket to new levels as price discovery for real, deliverable metal is finally realized.

Visit Crush The Street for more interviews like this one, commentary, original videos and wealth building strategies.

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    1. Mr Reynard

      Buy US$ ! Buy US$ ! Buy US$ ! Buy US$ ! US $ is backed by the government ! Gold is not backed by anything & it’s a relic from the past ! Buy US$ ! Buy US$ !Buy US$ !
      As reported by a bimbo from NBCCNNABCFOX….

      • laeagle

        When the music stops, the birds will begin to chatter briefly, and you will know ‘the time’ is truly near, bolt those doors and close all the hatches!

        • KY Mom


          “Investors are panic-buying stocks, panic-selling bonds, and panic-pumping-dumping-and-pumping crude this morning…

          The machines are in charge…

          What happens next?

          With humans on the sidelines and algos in charge, this week with The Fed and quad witching should be ‘eventful’.”

        • Anonymous

          They’ll be coming to load you in one bus, your spouse in another, and each of your children in other buses to be shipped off to “undisclosed locations” for their “safety”, of course. The (rich man’s) market will be declared to have fallen (Revelation 18:2) and, the elites will be grabbing the only asset they think can rebuild their “Republic”–the masses of people under their enslavement.

      • Jim

        It’s so funny! Gold isn’t backed by anything… rotflmao. Gold doesn’t need to be backed by anything. It’s gold. Everyone wants some, but many love leverage and will end up with nothing but a mountain of paper only good for a cheery bonfire.

      • buttcrackofdoom

        just make sure you got THIS first!
        board games & card games.
        Fire extinguishers.
        Books on foraging and how to use herbs and essential oils.
        Bug out Bag
        Camp Axe
        Camping pots/pans
        Camping utensils
        Duct tape
        Emergency Radio
        Energy bars
        Fire extinguisher
        First aid kit
        Gas mask
        Hunting supplies
        LED Headlamp
        Multi Vitamin
        Mylar blanket
        Portable Generator
        Rain Barrel
        Rain Suit
        Sleeping bag
        Survival Knife
        Water bottle
        Water Filtration
        Water Tablets
        1 pair of baofeng 2 way radios with spare batteries, fuse, alcohol stove and spare wicks (no smoke or odor)
        plumbers goop or shoe goo, shoelaces(or just use paracord), rechargeable batteries and charger, multi voltage multi tip 12 volt power adapter, battery powered motion sensor alarms, flir night vision scope, clothes pins (can also be used as triggers for tripwires), rat traps, coyote traps, battery powered motion sensor lights, spare spark plugs and tune up items, pri-g and pri-d fuel stabilizer, chainsaw files, spare chains, tire chains, come-a-long, spare tires, motor oil, flare gun, guillie suit, high powered binocs, medicinal herb seeds, crutches, ace bandages, Lee basic reloaders, bow and arrows (silent), reading glasses, hatchet, folding shovel with pick.
        A tire repair kit. A kit that can fix multiple punctures could be a God send!
        Work gloves
        Solar battery charger. I have a great AA/AAA Ni MH Battery charger, and a 15 watt solar panel. It still needed a voltage regulator between the two, so I don’t damage the battery charger. People can google 12 volt regulator circuit. They are easy to build from Radio Shack partsI have built several for a couple for different voltages. 12 volt exactly for 12 volt devices, and 13.8 for slow charging lead acid batteries. 14.5 volt for fast charging lead acid batteries
        duct tape
        Ant-acid and stool softener. In a SHTF situation people will be exposed to new pathogens and foods, lots of Pepto folks, it could save your life.
        Plain aspirin, lots of exertion means heart stress. Plain Aspirin could save lives
        I listed IV for emergency fluid replacement. The needles and solution need to be absolutely sterile, and are prescription only in many states. Grandma just used an enema bulb, still available in drug stores, it saved babies and children from dying due to dehydration. Plain clean water or better a 30% pedi-a-lite solution is best. Yup, Gatorade works in a pinch. Add 30% wine to it and they’ll feel no pain while you do stitches.

        “Gerber multitool……….“lock pick” set, but be aware of state laws on this item. Bolt cutters will open gates
        solar panel
        jogging stroller
        cast iron dutch oven
        CASH. GAS!!!!!!!!!!!
        water….sugar….flour….powdered milk……….t/p………………top ramen….pancake mix….candy, rock…..DOG FOOD…VEG OIL…rice…..beans…………macaroni…………bleach…………benadryl…..wipies….garbage bags…….plastic cups,forks,spoon,knives .
        IV for rehydration
        photo albums, identification (birth certificates, social security cards, financial documents, wills/deeds, and medical insurance information), proof of address, as well as items for a 72 hour bag.
        brillo pad makes a good fire starter with jumper cables)or a 9 volt battery
        extreme cooler (use it to carry water, if needed)
        antibiotics from the vet supply store ampicillin, amoxacillin, penicilin, and others
        a hat for sleeping in
        Storable Food
        An Axe
        Lighters Or Matches
        Hiking Boots Or Comfortable Shoes
        A Flashlight And/Or Lantern
        A Radio/Communication Equipment
        A Swiss Army Knife
        Personal Hygiene Items
        A First Aid Kit And Other Medical Supplies
        Extra Gasoline (But Be Very Careful How You Store It)
        A Sewing Kit
        Self-Defense Equipment
        A Compass
        Hiking Backpacks
        A Community
        A Backup Plan
        Extra Batteries
        A Camp Stove
        Heirloom Seeds
        An LED Headlamp
        Calcium Hypochlorite
        Maps Of Your Area
        rifle For Hunting
        Extra Socks
        Gold And Silver Coins For Bartering
        citizens band radio
        battery chargers and phone chargers
        kool aid
        bike tubes
        4×6, or 6×8’s for crossing obstacles(3 feet long)
        wasp spray
        hunting knife
        water and purification stuff
        dutch oven
        coffee/water filters
        Gun Cleaning Kit & Supplies
        Wire and Wire Cutters
        Fire Extinguisher
        hacksaw………GOOD pair of wire cutters….butt connector pliers and wire connectors ….11-1 screwdrivers-not some cheap-o
        6 foot Pry bars-lift heavy items, pop open doors, break locks, move hot objects. harbor freight
        sandpaper/crocus cloth…………….. file for sharpening tools……….. hammer
        bailing wire
        box of bolts/nuts/hose clamps
        3/32” E-6010 welding rods. These can be used with three 12 volt car batteries and some jumper cables to make an emergency field repair.
        peanut butter and crackers makes a great shtf meal
        vise grips
        fix a flat/air compressor
        Tarp (2) and 550 para-cord (shelter) You want two tarps, one for shelter above the head and one for the ground under your head
        Ponchos to protect from rain
        A folding saw and shovel.
        A handheld chainsaw (they are about the size of a mans wallet)
        Lightweight hatchet
        Army survival manualor others
        2 pairs of socks. One pair of our socks is a thermal type(wool is best) that will keep your feet warm in up to zero degree weather. It all depends on where you live and where you will be traveling. Cotton socks tend to hold moisture so you might not want cotton.
        good pair of warm gloves/work gloves. Mine are a combination of both.
        A pair of good boots or hiking shoes
        A pair of long pants. I prefer not to have jeans. They are heaver and if they get wet, they stay wet for a long time.
        One pair thermal underwear/pants and shirt, at LEAST for everyone in family.
        dogs and dog food …small dogs hear EVERYTHING, and eat less!
        deck of cards
        food…pepperoni granola bars…..
        first aid book… where there is no doctor book
        paper plates
        ziplock bags
        aluminum foil
        butane stove or some other way to cook
        eye drops
        chap stick
        plastic wrap
        powdered milk will be HUUUUGGGGEEEEEE ..have a LOT of it!
        Bug Out Bag Contents
        The Pack – I have a LC-1 “Alice” pack but any quality pack with enough capacity will do. Stick with camouflage, dark green or other natural colors that blend with the terrain.
        Water – A canteen with cup and cover for your belt, water bottle and a good filter.
        Fire – Waterproof matches, a magnesium fire starter and tinder.
        Food – Pack enough to last 5-7 days. Rice, oat meal, beef jerky, energy bars etc. Another option is MRE’s and the freeze-dried foods. Choose foods that are light weight and a suitable shelf life.
        Stove – A small stove is essential it you want to stay hidden. Smoke and noise from the cutting and burning of wood would be undesirable if you are in hostile territory or being pursued. I have a Peak-One backpackers stove, there are others but this is what I have and can recommend.
        military 4 part sleep system…protects to minus 30 degrees if you know what to do with it…and at LEAST have the bivy bag part of it in your car in case you get stranded….if you are dressed for the climate you’re in, it might only take that bivy to save yer life. randy
        Shelter – Rain poncho and tarp or compact tent, stick with natural colors that blend with the surrounding area.
        Cooking – I have a Stainless Steel 5-Piece Mess Kit, that I ordered from but any lightweight kit will do.
        First Aid – It’s best to assemble your own kit, tailored to your needs, or if you are lazy you can buy a ready-made kit. Don’t forget to add personal medications.
        Light – I have a 2-AA Cell Mini LED Flashlight Mini LED Flashlight and a 9-Hour Candle.
        Tools – A folding saw, Swiss Army pocket knife, and fixed blade knife. A light weight shovel and Machete are nice, but add extra weight.
        Clothing – At least one extra pair of socks and underwear add other items if you feel the need and have the space.
        Fishing – Line, hooks and sinkers and a few small lures. I also have a small gill net for catching fish.
        Snare wire – I make my own from copper wire. Don’t forget to include at least 50 ft of parachute cord.
        Plastic bags – Two or three large lawn bags and several zip-lock sandwich bags, can be used for a number of tasks and to keep things dry.
        Binoculars – See game and enemy before they see you.
        Sewing kit – Needle and thread don’t forget to include a few extra buttons.
        This n’ that – Head net, electrical tape, face paint, gloves, sharpening stone etc.
        Firearms – This is where feathers get ruffled and wounds opened. Everyone has their own idea of what the “perfect” survival firearm is or should be.
        I am not going to get into all the choices here, which would be an article in and of itself.
        Coffee, sugar, and chocolate.And salt. Buy these items in bulk. Store in baggies for trade.
        coffee filts for straining water and bleach
        digging bar
        tow straps/shackles/chain with pipe for towing
        loadbearing vest
        pain reliever
        Children’s pain reliever
        First aid book
        Prescription medications (keep copies for records)
        Cold/flu medicines
        Blood clotting
        Sterile gauze
        Dressing bandages
        Dressing rolls
        Medical tape
        Bandages of all sizes
        Alcohol wipes
        Hydrogen peroxide
        Eye flushing solution
        Anesthetic solution
        Hypodermic needles (for the antiseptic solution)
        Electrolyte tablets
        Cold Packs
        Antibiotic ointment
        Skin irritation creams
        Suture needles/string
        List of medical contact phone numbers
        Medical history file (if needed)
        medicine cabinet…take the whole damn thing
        giant channel-lock pliers and crescent wrench
        vitamin c…scurvy
        appologies for the stuff that’s on here two….or MORE times, but i aint cleaned it up in a while….someday when i’m not doin’ nuthin’……

        • aljamo

          A bit off topic… I read where nickel was taken out of 5 cent coins back in 1982 when copper was removed from pennies. I thought nickel was still in the 5 cent coin.

          • john stiner

            How much longer before pennies and nickles are made of plastic.

          • Paranoid

            Go to coinmeltvalue has data

          • Archivist

            coinflation (dot) com is where I get melt values for coins.

            Nickels are still nickel and copper.

        • KY Mom

          Excellent list!

          Any newer readers, copy, paste and print the list.

          • buttcrackofdoom

            i’ve been working this list for 6 years plus. not all people will want/need everything on this list….it’s a list to PICK from, and i know a lot of you won’t know WHY you need some of this stuff… here in the hi-desert,ca food that has water will be precious. we want canned food that you can eat without using/adding water(or even heating, for that matter). even if you live in wet climates, it will be safer to get water from canned food than drinking possibly contaminated water from alternative sources…..water and food will kill MANY after shtf!….food poisoning/bacteria/chemicals contamination.

        • Anonymous


        • Plan twice, prep once


          Re solar panel power regulation and battery charging, I also have a 15 watt panel as well. I’ve been researching charge controllers.

          If you look on EBay you can find “solar charge controller”. They have them for a wide range of panels/ battery pairs. There are a couple rated for ten or twenty amps, for under $20 that will fast charge the battery and then automatically go to float charge, so the battery doesn’t get overcharged. There’s a twelve volt out that can use solar or battery with an auto shut off so you don’t excessively discharge the battery and several models also have USB out charging ports for phones and tablets.

          Once I pick one out its going on my birthday list.

        • Plan twice, prep once


          You’ve been tuning up your list, looks great.

          Note to people that are new to the idea of prepping. Print out this list and check off everything you already have, next give yourself a big pat on the back. You’ve likely already got a good start. Next work on food, water and personal supplies. Buy what you already eat but when it’s on sale buy larger lots till you have a good supply in rotation. Buy in bulk, buy on sale, the money you save can fund further prepping.

          Don’t be overwhelmed when preppers here talk about how what seems like hugely expensive large supplies understand some have been at it for 10 to 20 years.

          Money is tight for a lot of Americans, many prepping techniques including growing your own food can be a money saver. It can be very satisfying to take control of your own life in a world running out of control.

          • buttcrackofdoom

            thanks plan….DO let us know when you pick out that controller…i’m sure there will be interested parties here. thanks to ky mom too!!!

          • George Washington

            Excellent advice Plan Twice. To all here check out or a similar non profit in your area. I pick up 60lbs of produce each week for $10 and use it to perfect my canning skills.

        • Vic

          That is a fine list..

          Well worth reviewing…Thanks

          Never believe you have it all nailed down.. and you just might have enough nailed down to do the job.

          BTW I wonder how many Preppers today can say they have Nitrogen Packed Storage Food with a 25 year shelf life..
          That Expired 10 years ago..!!! lol

          Your Grandpas and Grandmas were not all “Hippies” you know… LOL

          “Be Prepared”

          Simple and to the point.

          God’s Blessings and Lots of Lucks to all of you.


        • Karl V.

          Please pardon me if I missed these on the list…. did not see them but I might have missed them….

          I saw “bike tubes” but didn’t see “bicycle” itself. A good rugged mountain bike will extend travel abilities tremendously, especially if you are getting along in years or have dodgy knees or hips, etc. Somebody who would have a tough time hiking a couple miles may find that they can bike ten or fifteen miles without much trouble; and in a fraction of the time, too. And it’s virtually silent, which is a huge plus. Add a small bike trailer for hauling supplies and you’ve really got a heck of an asset. Paint every surface of the bike in dull, dark, non-reflective colors.

          Did not see “pressure canner” and “canning jars” on the list. (Plus lids, canning salt, etc) I consider these ‘must-have’ for a long-term crisis. Glass containers of all sorts (especially 1-gallon jars) are crucial for protecting food against insects, moisture, and especially rodents.

          Rechargeable batteries are mentioned; I will add that the best ones I have found are Eneloop and Rayovac Platinum. (The heavily-advertised “bunny batteries” died after three months or so.)

          I would add a crossbow and plenty of bolts, extra strings, etc. Silence is golden….

          Grouped with the come-along should be a couple of those inexpensive hoists that are sold for hanging deer to be dressed out. These have many uses. I once had my snowblower run out of petrol when it was barely on the ramps going up to the pickup bed. Naturally, the gas can was 20 miles away. Scrounged around in the back of the truck, found the hoist, rigged it up, and pulled the machine up the ramps and into the truck bed. Imagine all the heavy loads you’ll have to deal with in a world without electricity or motors.

          In the ‘tools’ category I would like to emphasize the usefulness of a long-neck Estwing framing hammer with a straight claw. Countless uses… not the least of which is that it can be used to great effect for defense. And along with the big pry bar recommended in the list, you might consider a smaller one, maybe two feet or so. Years ago, I bought a Russian surplus (that’s what the seller claimed) titanium pry bar. While it’s a bit more brittle than steel, the light weight means that I am more likely to actually have it with me when I need it; especially if hoofing it or on a bike. ~ KV

    2. molonlabe

      The moral of the story here is to make sure whatever it is(gold, silver, food, ammo, guns,etc.) that it is tangible. If you can’t hold it in your hands, then it doesn’t exist.

      • Ame

        Remember when you were a kid and got to a favorite toy on the playground before any other kid? No matter whose turn it was to play with that toy, the kid that got to it first yelled, “Possession is nine-tenths of the law!!” and you had to physically take the toy away from them if you wanted it.

        We are about to see that schoolyard rule in action with physical gold!

        Yes, indeed. It should be very interesting to see what THE REAL PRICE of that one ounce of gold really is….

    3. Jacknife

      if gold and silver are relics of times past, then why are the Chinese buying up as much as they can? Silly Chinese, didn’t they get the memo?

    4. climber

      Hey molonlabe….you nailed it. Tangible is the key word.

    5. PO'd Patriot

      “There’s a ‘sucker’ born every minute”. ‘Ol P.T. Barnum sure got that right.

    6. Old Gringo

      The price of gold will rise when China decides its time.
      When they can’t suck up anymore from the West it’s “game over”.

    7. Old Gringo

      Should be interesting to see the Indian government try to strip the gold from Sikh temples. The Sikh’s by tradition are India’s “warrior” class. I’d like to have a ringside seat to that fight.

    8. Charley Waite

      Latest in a long line of world fiscal irresponsibility, dating back to Athens.

    9. 2isone

      Hi ho silver.

    10. swinging richard

      Makes you wonder who will be prosecuted for fraud.

    11. Godsoldier

      News alert all LA schools closed terror threat

    12. john stiner

      Anybody else notice that silver was down to around $13? Lowest price i have seen in years. I suspect it may go lower. If oil is at $35 and going to $20 I think the depressionary pull will drive silver down more.

      I plan on buying a shitload at $11.

      • Really???

        $11 spot? Sure, but there will be a $4-6 premium on it.

        To buy at $11, spot will have to be about $5 or less.

        Fools and knives. $11, 13 or 23; don’t try to catch that falling knife; you’ll either miss it or get cut bad. Just buy the stuff and be happy you have some. But you won’t, you’ll wait and then whine that there’s none to be bought at such a low price.

        I buy whenever I can, little here, little there; it’s almost a nice pile now.

        • Jim

          Dollar cost average – buy some every month. Premiums do suck though, I have to admit.

          • admin

            I agree — It is impossible to predict when this turns to the upside (or keeps going down). Personally, I bought at $9… and $30… little by little…

            Admittedly, I also own some precious metals mining stocks, though this strategy is not one that is designed for total collapse where our entire system infrastructure collapses. It does, however, seem to be a good bet for the long-term in a scenario like the Great Depression or even a hyperinflationary collapse of the US Dollar… Looking back at the 1930’s Homestake Mining comes to mind and it is research like this that compelled me to swap some of our paper investments into well managed gold/silver mining companies (both majors and juniors):

            • Plan twice, prep once

              Gold and silver will fall as we head into a crash. You’ll see the paper price drop, but actual gold you can hold will be near impossible to buy, no one I’ll sell anything but paper gold. And this crash bottom will be over in a flash. Few buyers will be agile enough to buy at those prices.

              Many diversified investors will need to cover margin calls for stocks and bonds, and other losses. In a crash they will sell everything of value. Gold will be high on the list, but no one will want paper gold when they realize what is really afoot.

              Smart money is buying gold now, or at least funding accounts to be ready to buy at the drop of a hat.

              When any investment is hated as much as gold is right now, that is a buy signal that is saying it is at or near its bottom.

              Do I know for a fact that gold is at its bottom? No, in fact the FED and treasury may pull another rabbit out of their hat to pacify Wall Street, and kick the can down the road some more. If they can they will and gold and silver will keep treading water.

              The Chinese are making big moves in the gold market, used to be London was where the world gold market set the price of gold. The Chinese it is said, have had enough of US and EU precious metals price fixing, so China has opened their own precious metals trading center. They will use that center to take gold where they want. That center is opening now. The US/EU monopoly on precious metals trading is about over. Give it about three months for trading contracts to unwind in London and contracts to cue up in the Chinese market, then you’ll see the effect kicking in. The paper market for precious metals may just go poof sooner than later.

          • Jacknife

            Look for sales. Every Monday, Jm bullion has a new sale on silver products. You can get good deals as low as .79 cents over spot.

        • john stiner

          I last sold my silver at $34 and ounce. I had bought it at $17. Now it is time to stockpile again.

          In Houston, I pay $1.00 over spot to buy, sell it $2 over spot.

    13. Paranoid

      No you won’t. I don’t have any idea what the bottom is. But I know that when it gets here, there will be none for sale, to us. That’s the trick. Unless you can buy 5000 oz bars from the Comex, your local guy will tell you he is out (Oh yes, Comex will tell you sorry all out, Lines are busy with people far more important than you.)

      • Really???

        Maybe, maybe not.

        Remember just this past summer everyone predicted $13 silver and here we are. They also predicted there would be none to buy at $13 and yet, there’s TONS of it everywhere, even 90%.

        Buy all you want, they’ll make more. Promise.

        Of course, while silver is nice and I have a small stash growing, gold is the place to be. Stop buying Ag and move your $$$ to Au, much better in the long run.

        • Paranoid

          Tons of 90, really? my coin guy had: 1 half, 3
          Qt, and 5-6 dimes

        • HBOMB

          Not yet. Keep buying silver until the GSR drops to 50 or below, then convert to gold.

        • Texasprepper

          The price spread between gold and silver is historically 20 to 1, right now its 77 to 1. Since this spread has grown so wide, I think long term, silver is a better investment.

          • Genius

            Texas, and most of the silver ever mined is in the trash never to be recovered where all the gold is still around for the most part. The new ratio is probably more like 10 to 1. The only thing I like more about gold is portability. Silver will outperform gold for a long time I think,,,

        • john stiner

          Remember, silver is poor mans gold.

          I prefer silver because in a SHTF scenario it can be used for everyday currency where gold can not.

          You wouldn’t want to buy a couple of chickens and a loaf of bread with an ounce of gold, but with an ounce of silver it would be about right.

    14. Anonymous

      Just like plain old paper “money” in any form–worthless. That’s why one big piece of paper–the U.S. Constitution–made gold and silver the ONLY form of money. Gold and silver are natural elements that only the unfound “philosopher’s stone” can counterfeit to worthlessness. But, of course, that one big piece of paper is now worthless too.

    15. 2isone

      The premium is what shows demand in the background. High premium = high demand. The premium is so high that it’s making small buyers pause. The middlemen aren’t hurting at all. But, the tilt is going to come. Question is, can you wait it out? I think it is going to rise phenomonally.. But then I wouldn’t be surprised if we were ordered by the government to cash out shortly thereafter. There is going to be a sweet spot where you will be able to use that precious metal to secure goods and services beneficial to saving lives. After that, PMs will become a liability. That is why the Bible says that people will throw their gold and silver in the streets.
      Getting some fractional silver today. And if spot goes down to 4 bucks, I’ll make jewelry out of them:)

    16. Ame

      Remember when you were a kid and got to a favorite toy on the playground before any other kid? No matter whose turn it was to play with that toy, the kid that got to it first yelled, “Possession is nine-tenths of the law!!” and you had to physically take the toy away from them if you wanted it.

      We are about to see that schoolyard rule in action with physical gold!

      Yes, indeed. It should be very interesting to see what THE REAL PRICE of that one ounce of gold really is….

      • john stiner

        In my school we told the teacher. She administered social justice and rebuked the child for having white privilege. Everybody got equal time with the toy even though some kids were too small to play with it. The black kids got more time because of affirmative action. The teacher knew that they did not have toys at home because of the injustices suffered at the hands of an evil white Santa.

        • Archivist

          In my school, we didn’t have black kids. We didn’t get full integration until my second year of high school.

    17. JohnF

      Sounds just like the Sliced & Diced Mortgage Scam that Goldman Sachs sold to everyone while betting against them at 100 to 1.

    18. Meltonmark

      How does anyone know how much gold is actually available for trading in the international domain anyway? The Fed [and I suspect other Central Banks] haven’t been independently audited for decades. The EU hasn’t published a set of audited financials for the last 19-years. Seems to me everyone is assuming based on mining stats, last known records, and so forth. Better than nothing perhaps, but hardly financially very accurate.

    19. Anonymous

      Anybody involved in this paper gold scheme deserves what they get. There are many scenarios out there that are starting to unravel and still many clueless sheep. When some of the clueless catch on it will be too late and my answer to them will be “I don’t know what to tell ya”.

    20. Anonymous

      Speaking of gold. Beware of big name mall jewelry stores. A lady I know received a gold ring with some small diamonds in it from her boyfriend which retailed around $700.00. They broke up and she tried to unload the ring. The mall store it came from wouldn’t buy it back. She then went to a pawn shop and was told the diamonds are too small to buy but we can give you scrap gold price for $30.00. Retail jewelry is a rip off. Anyone wanting jewelry as an investment should go to a pawn shop or antique store.

    21. GetAClueDudes

      You people really need to get a clue. The entire premise of this article is TOTALLY& BOGUS and shows a total lack of understanding as to how COMEX gold contracts work.

      Gold futures contracts – CME Group

      The current pricing information is at:

      The current volume information is at:

      Each and every single COMEX Gold Contract is backed with exactly the amount of gold stated in that contract which you cluelessly do not appear to comprehend at all despite all of the data above clearly reflecting exactly that contrary to your bogus and dead wrong assertions.

      COMEX only handles about 460 metric tonnes of gold in the COURSE OF AN ENTIRE YEAR which is ONLY 10% of the annual gold supply of 4,650 metric ounces and never once in the entire history the CME Group has COMEX ever failed to deliver on any one of its gold contracts.

      • Green Tip 4 U

        Kindly explain why the article is false. I would love to hear your take on it.

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