293 Ounces Of Paper Gold For Every Ounce Of Physical Gold at the Comex Exchange.

Originally posted by Zerohedge  

 

This means that as of 4th November 2015, the gold "coverage" ratio, or the amount of paper claims for every ounce of physical, has just hit a new all time high of 293 ounces of paper per ounce of registered physical. A crisis of leverage indeed !

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Unlike Bitcoin, which has doubled in the past few weeks (as the predicted Chinese buying onslaught indeed materialized), it hasn't been a good week for spot gold prices which have tumbled from $1,180 to just over $1,100. While the reason for the selling is unknown, with recurring speculation that an imminent Fed rate hike will make holding gold even more unwelcome in real terms (if not in India where gold now pays interest on par with inflation), what we do know is that as of yesterday the total registered gold at the Comex had dropped to a fresh record low following another transfer of "registered" gold into "eligible."

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Definition:

Eligible gold essentially means that the gold is stored in COMEX warehouses, and conforms to exchange bar standards.  It is being stored in the COMEX warehouse for a private party, but it is NOT available for delivery to contracts.

Registered gold means that the gold bars are fully available for delivery to longs who stand for bullion delivery.
Registered gold is deliverable or available for delivery to a long standing or demanding bullion delivery and is the basis supporting the Comex paper contracts. 

This reduced overnight the total amount of eligible gold by a third to just over 151,000 ounces, or under 5 tons as the zoomed in chart below shows.

 

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