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Albert Sung is the author of the Katchum Macro-Economic Blog, monitoring breaking economic news from a day to day basis. He started investing in 2008 because of the economic crisis and holds a masters degree in chemical engineering. Previously, he worked several years as a process engineer at... More
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  • Leverage Of Paper Gold Hits Record High 0 comments
    Nov 6, 2013 4:40 PM | about stocks: 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.

    (click to enlarge)

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

    (click to enlarge)

    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
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