WEB Notes: This has always been an important topic. The COMEX is simply the “Commodity Exchange”. Gold is traded on the COMEX via paper contracts. There have always been far more paper ounces of gold than physical ounces of gold to back up those paper contracts. Just like our paper currency, paper gold simply becomes worthless at that point. This article points out there are 40,000,000 ounces of paper gold in circulation while there are only 74,000 ounces of physical gold. If those who hold paper gold called their contract and requested physical gold in exchange there would never be enough. Can you imagine what would happen that day… With that said, if you are able, keep a little silver and/or gold around for a rainy day. It might come in handy during the Tribulation. All we can do is prepare to the best of our ability, stand strong in the Lord and let Him do the rest.
There is an ongoing crisis at Comex pertaining to the amount of real gold the vault holds. In September, the number of paper contracts per ounce of physical gold had risen precipitously to 252.
According to ZeroHedge, that ratio has since more than doubled.
As the chart below shows – which is disturbing without any further context – the 40 million ounces of gold open interest and the record low 74 thousand ounces of registered gold imply that as of Monday’s close there was a whopping 542 ounces in potential paper claims to every ounces of physical gold. Call it a 0.2% dilution factor.