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.