Follow the money and right now money is moving into gold and select miners. In fact, there’s so much interest in “paper” gold that physical supply has utterly broken down. As in… crashed and about to burn in a roaring fireball!
This is critical. The amount of physical gold in storage in Comex versus the number of registered “owners” against each ounce is nuts.
From a few owners per ounce, it jumped to 542 by this March!
Just check out this remarkable chart:
Look at what’s happening. From the early 2000s to not long ago, the number of “owners” per ounce — people who bought a “paper” gold contract, supposedly backed by real metal at
Plus, there were literally millions of ounces of gold on deposit in Comex. There was gold in the vault, in other words. If you showed up with a contract, you could walk away with gold. That’s how markets ought to work.
Most of this gold moved out of the West (London, Zurich, New York) to the East (China, Russia, India, Middle East). It’s gone forever
By late 2015 and now into 2016, registered “owners” against Comex gold spiked to a nosebleed level of 542-to-1.
By comparison, your child has about 30 times better odds of applying and getting admitted to Harvard, Yale AND Stanford than does a Comex contract holder have of walking away with one ounce of gold. Good luck with that!
“Uncovered” speculation has gone exponential. There’s lots of “paper” gold and almost no “real” gold, which makes for a high-risk scenario — certainly if you don’t hold gold. Its higher return if you do hold gold. (Feel free to smile if you do.)
In essence, all hell has broken loose in gold trading pits. Naturally, the mainstream media (MSM) have not discussed it. No,
Any working, functioning “futures” market requires
Yet with gold, there are almost no ounces of Comex gold available
By comparison, look at oil markets. With oil, there’s ample supply from six continents. I’ve read of tankers from Middle East nations literally slow-sailing the long route around Africa, to buy time for cargo owners
The cupboard is so bare for gold that Comex could collapse into the equivalent of a “run” on vaults. If that happens — rather, “when” that happens — watch gold prices spike. On that golden day of reckoning, you’ll see more than a buying frenzy or even a panic. It’ll be utter pandemonium.
When this bomb explodes, gold prices will melt upward in ways we can scarcely imagine. Instead of a few dollars up or down on the ticker, you’ll see
Here’s what to do now…
Own physical gold. If you don’t have
Second, you should strongly consider quality mining stocks. Right now, my stock-buying focus is on well-capitalized miners in production with a solid reserve base. Some of these companies have been beaten up so badly over these past few years, their upside is practically unlimited when gold really takes off. It’s been so bad that it’s actually getting
My view is that we’re in a sweet spot. Any rebound (short or long term) can vault you high and far when the turnaround hits. And it will hit.
Sooner or later, it will hit.
- Source, The Daily Reckoning