Comex Paper Gold Open Interest Continues Its Vertical Ascent

 From sublime to ridiculousness there is only one step.  – Napoleon

The Fed is nothing but a mafia organization that took control of the United States starting in 1913 (Rory Hall, The Daily Coin).  In sheer defiance of all free market principles, the paper gold open interest on the Comex continues to move inversely to the price.

Yesterday the open interest in fraudulent paper gold futures open interest spiked up another 8,056 contracts to 470,720 contracts.   This added another 800,560 – 25.1 tonnes – ounces of paper gold to the Comex open interest, while the amount of gold “received” into Comex vaults increased by only 35,107 ozs.

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COMEXGOLDRecall that Germany is trying to get back just 300 tonnes of gold from the Fed but has to wait seven years for this to happen.  But the Fed, through its agent bullion banks, can create more than 300 tonnes of paper gold in just one week (remember Bernanke’s magical electronic printing press).  Why won’t Germany just agree to hold paper gold?  Based on the business activity of the Comex, paper gold is perfect substitute for real gold.  Angela? Wolfgang?  Jens (Weidmann, head of the Bundesbank)?

The amount of fraudulent paper gold created by the banks yesterday is 165% of the total amount of gold that is being reported as “registered,” or available to be delivered.  No other commodity in the history of the world is allowed to operate with kind of paper to physical ratio.

The entire U.S. financial and economic system is nothing but one enormous fraudulent Ponzi scheme enabled by the complete takeover of the U.S. Government by corporate and banking interests  (see this podcast with John Titus on the Shadow of Truth for direct proof of my assertion).   The Comex is ultimate symbol of complete fraud and corruption that has completely engulfed the system.

Historically the level of open interest in gold and the price of gold have been highly correlated.  The last time the paper gold futures interest was as high as it is now was November 27, 2012.  The price of gold was $1741 per ounce.

The only conclusion that can be drawn is that the Federal Reserve, likely on orders from the BIS, is going to try and suffocate the price of gold.  The unintended consequence is the enormous drainage of gold from western vaults into the eastern hemisphere.  I suspect the bullion banks themselves are on the receiving end of that gold.

At some point the Comex itself will suffocate under the weight of paper gold.  The elitists will conjure some event of force majeure and the Comex will exercise its right to settle the paper with more paper, i.e. U.S. dollars.  At that point they may as well use drachmas…

Paper is a check drawn by legal looters upon an account which is not theirs: upon the virtue of the victims. Watch for the day when it bounces, marked, ‘Account overdrawn.’  – “Ayn Rand, Atlas Shrugged”

14 thoughts on “Comex Paper Gold Open Interest Continues Its Vertical Ascent

  1. Dave mentions that the correlation between silver open interest and price has been broken. Dave’s chart suggests that the correlation was broken on 4/15/2013. This is when the extreme manipulation started.

    Since then, the daily Silver volumes per netdania have been in the BILLIONS. Netdania shows the daily volume since then at about 5 Million contracts or 25 BILLION OUNCES PER DAY, or 25 years global mine supply per day. Obviously there is no physical silver being traded and these are just HFT wash sales between the bullion banks to fix the price.

    When the Comex fails then Silver will skyrocket and the dollar will hyperinflate, as there are about 5,000 electronic ounces of Silver being traded for each physical ounce in existence.

    See for yourself:
    http://netdania.com/Products/live-streaming-currency-exchange-rates/real-time-forex-charts/FinanceChartPopUp.aspx?symbol=XAGUSD%7Cnetdania_fxa&name=Silver,%20spot

    Make sure to it the volume button.

  2. I think the startling aspect is more oi was added yesterday than there is gold available.

    or is it the 97:1 ratio of “players” vs gold available.

    Imagine going to a friendly poker game where everyone was just given chips at the start and settling up would be at the end of the night , and a couple of players said oops, we have no cash. No more friendly.

  3. ” Montana’s largest mining company has laid off 11 people from its mine near Nye as prices for precious metals continue to fall. Stillwater Mining Co. spokesman John Beaudry says the layoffs are effective Monday. Beaudry says the 11 employees were in probationary positions and the move was in response to market pressures. Stillwater employs roughly 1,600 people and is the only U.S. producer of platinum and palladium. Prices for the metals have dropped by more than 20 percent this year.”
    http://www.heraldonline.com/news/business/article27170761.html

  4. Just wondering if anyone has read any of the disclosure statements in any of the Gold or Silver Paper ETF’s lately? …. curious if under a “Risks” category if there’s any disclosure pertaining to the risk posed by the issuance of infinite amounts of Paper Gold or Paper Silver that could distort the price discovery process of the real metals.

  5. AMAZING ! Gold down again today over $7.00. This of course is just
    nuts. Anyone who cannot see that the markets are centrally planned
    should have their head examined.

  6. hi, I don’t understand the topic of little COMEX inventories compared to open interest. Long gold positions should be settled in cash, not with physical delivery, only shorts can be settled with delivery. Therefore there shouldn’t be ever any problem whatever the size of the open interest. Please correct me if I’m wrong. thanks

    1. You need to review futures 101. Every long is a short. Every short is a long. A legitimate futures market would require there to be enough gold or silver – or any underlying commodity in any futures market – to back the futures contracts that legally represent that gold/silver. Maybe allow a 5% ceiling above the physical stock to help liquidity. Every other market functions somewhat in this fashion. The open interest in gold/silver futures is well beyond any reasonable amount of the underlying commodity.

      1. if I look at bund future (rxu5 on bbg) as an example, the open interest is in excess of 1.130.000 contacts, that is a multiple of the combined basket of deliverables into the contract, and the same can be said of many other commodities. why should I relate the open interest to the amount of gold at Comex? the only reason to do that is if I think that those who are long decide to take physical delivery and we realize that there is no gold to be delivered. but since they will be settled in cash, the problem isn’t there. At that point the amount of gold that is at Comex doesn’t give me any information. Even relating the open interest to production doesn’t mean anything since the stock of gold is a mass multiple of the production, it is the cumulated production of the last hundreds of years, and that can move and change hand. For grains, and all the perishable commodities the situation is different. but probably I am missing something. thanks

      2. just to conclude, I’m only trying to understand, I am long gold as probably you are and I think it should go up in this environment, but is not. I only wont to understand if the argument is sound. thanks

  7. The entire Western financial system could be likened to a church and the dollar a religion built on a firm foundation of faith. Nothing more. It survives and thrives so long as the community of faithful continue to believe in the almighty dollar story and the higher power that prints it.

    There are some big holes in the almighty dollar story and many vocal naysayers claiming that the dollar is not real, the religion is a fraud, and the church is corrupt, but nothing yet has surfaced to cause the flock to doubt their faith, as a result the dollar remains sacrosanct and is still worshiped by the masses. Consequently the high priests continue to preach the gospel according to Keynes, attract more believers, and the almighty dollar remains inviolate.

    However, if evidence where to surface that the religion is a fraud and the dollar not real– that it is, in fact, only paper and ink, therefore has no intrinsic value whatsoever, the high priests of finance and the pressmen at the print shop would go out of business literally overnight, the dollar would fall from its privileged perch, and the flock of parishioners would become become so disillusioned that they would quit the church. No doubt some people would seek out a new church and many would become atheists, however most would turn to gold for their salvation.

    The high priests and priestess of finance are well aware this fact, therefore they see their #1 job to protect the sanctity of the almighty dollar story at all costs –for the entire dollar religion depends on it. Anything that threatens the dollar threatens the church, and hence is a threat to their power and privilege. This cannot be allowed to happen.

    Gold represents the major threat to the dollar not because it is competition for the dollar but because it contradicts the entire dollar narrative, bringing into question not only the church leadership, but in truth, the entire dollar religion. Gold therefore is antithetical to the dollar and is the antithesis of everything it stands for. You could say, gold is the anti-dollar.

    Golds 5000-year old history as money is totally incompatible with the tall tale the high priests of finance have been preaching to their flock, which is why gold must be suppressed, hidden from view, and condemned, and anyone who believes in it disparaged as a blasphemer and gold bug.

    Simply put, gold rises when the dollar falls…and not until then. So long as the community of faithful remain captured by the dollar religion and continue to believe in the church leadership, gold will remain to them little more than a shiny relic from antiquity, and the price will reflect this sentiment. If however peoples faith in the dollar is shaken, then they will turn to gold for their salvation and the price will rise.

    Until that day I refuse to attend church or place my faith in the paper dollar religion, instead I wait for the second coming of gold …

  8. I think you have it backwards – The Fed tells the BIS what to do, not the other way around. And the Fed does what the US Treasury tells it to do. Of course, they all work together and are on the same monetary page, and one organization can influence another, but TODAY, currently, it is the US Treasury that is “in charge”.

    This has been true since Greenspan and especially after Bernanke and now Yellen, have run the Fed.

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