Gambling For Gold

24 May

The COMEX Golden Roulette Wheel [courtesy Google Images]

The COMEX Golden Roulette Wheel
[courtesy Google Images]

Reportedly, there are more than 540 ounce of “paper gold” for every 1 ounce of physical gold at COMEX,  That means that there are 540 paper claims for every 1 ounce of physical gold at COMEX.

Is COMEX really a “market”?  Or, given that only 1 claim out of 540 can actually “win” an ounce of physical gold, is COMEX really a lottery?

Or maybe, we should call COMEX a “raffle” similar to those held by a school to raffle off a new car.  Five thousand people buy a raffle ticket for $10 each, but only one of them will win the car.  Similarly, with COMEX, 540 “investors” each purchase a paper claim on one ounce of physical gold, but only 1 of the 540 can actually win that ounce.

Is gambling illegal in New York?

Could COMEX be sued for running an unlicensed lottery or unlicensed raffle?

What about the London Gold Market?  As you’ll see from the following graphic, the London Gold Market is every bit as much of a casino as COMEX.

The following graphic makes clear that the London Bullion Market is the principle source of the world’s “paper gold” and principle mechanism for suppressing the free-market price of physical gold.

If something were to “happen” to ruin, wreck or destroy the London Bullion Market, the price of physical gold might skyrocket.

Courtesy of: Visual Capitalist

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3 responses to “Gambling For Gold

  1. Timmy

    May 24, 2016 at 8:54 PM

    I believe the correct word is “ponzi”.

  2. dog-move

    May 27, 2016 at 2:21 PM

    The modern day magicians at the Treasury are pulling the same sorcery that Pharoh’s magicians did in the days of Moses in Egypt. The Sea of Reeds lies directly ahead, yet few understand how to cross over the waters safely. Paper rafts and vessels are going to sink just like they did then. People do not study the Book of the Living God and will be punished as this process goes foward.
    The people has minds trained up on the trailer material preceding this comment.
    “The fool has said in his heart……there is no God”!

  3. Timmy

    May 27, 2016 at 6:04 PM

    One point- if i take one ounce of gold, and it gets bought and sold once a week for a year, that will generate $60,000 +/- in ‘trading volume’ off of one ounce worth 1200 bucks. Ie, total dollar values of all deals bought and sold in a given period of time is the ‘trading volume’.

    With computerized trading and the massive volumes of deals they do, volumes can be quite inflated.

    Not to take away from the core point of the piece, which I agree with (over-hypothecation). But that one aspect is misleading.


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