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Leverage Of Paper Gold Hits Record High

|Includes:SPDR Gold Trust ETF (GLD)

Registered gold at COMEX hit a new record low of 640551 troy ounces (blue chart). It's not long anymore before a default happens just like what happened with the London Gold Pool in 1968. Manipulating the price will never ever work forever. Once this blows up, we will see a continued rise in gold.

Moreover, the leverage of eligible gold to registered gold went to a record high of 10.1.

Open interest was 390369. Which is 36036900 ounces. Notice that open interest (speculation) is not falling, while physical gold stocks are falling. This is unsustainable.

If we divide this number by the registered stock, then we get 36036900 / 640551 = 56. This is a record high.

Stocks: GLD