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Paper Gold Pyramid Scheme Unwinds Right Now?

|Includes:SPDR Gold Trust ETF (GLD)

Pretty breaking news in the COMEX is that we are seeing a start in the unwinding process of leverage in paper gold.

Zerohedge reports that J.P. Morgan got its largest drop in eligible gold in one day.

This is how it looks like. Of course with so few real physical gold at the COMEX, the whole paper pyramid scheme will collapse in a jiffy.

(click to enlarge)Click to enlarge

And the leverage which will collapse too (still a long way to go down), is shown below. When everything unwinds, the paper shorts will have to come up with the real gold as China buys an ever increasing amount at the SGE. This week the SGE had a record delivery of 59 tonnes, the second highest after the 79 tonnes we got last week.

Add to that the most probable import tax restriction easing of the Indian government and we have the perfect storm for gold. I even sold my copper stocks to buy extra gold mining shares.

And I didn't even mention the end of manipulation by Deutsche Bank, the increasing investments from China in the gold mining sector and the decreasing supply from high grade mines going into 2015. Nor did I mention the crashing stock market which will make gold soar when investors switch their equities for gold.

Stocks: GLD