~*~Mining and Metals Du Jour~*~

[ConferredDiligence]

Tuesday the volume of traded contracts was 177,000. That’s 17 million ounces of “unallocated” (fake) gold traded. Worse, there are 453,000 gold contracts outstanding “open interest”. Considering 95% of the traders who SOLD these fake gold contracts don’t own 1 ounce of physical gold. This means they have sold (SHORTED) 45 million ounces of gold they NEVER OWNED. At some point (soon?) all these 453,000 gold contracts must be closed out. If there is not enough gold to execute physical delivery on at least SOME of these contracts, we will have a severe market imbalance.