Gold Paper To Physical Ratio is a Stunning 100:1, 2012 Will Be The Year of Delivery!
- Paper gold is largely a fraudulent investment. A bank takes in $100M from investors for gold investment but only holds US$1M in physical gold. Think about it. When the rush for physical gold/silver starts, many banks may go under. Gold price will rocket upwards!
Gold paper to physical ratio is a stunning 100:1, 2012 will be the year of delivery!
by http://www.cheviot.co.uk/, via http://www.commodityonline.com/
NEW YORK (Commodity Online): If gold traders of the futures markets need any more convincing to invest in physical gold, Ned Naylor-Leyland has one- the paper to physical ratio. Simply put- the number of open positions for just 1 bar of gold.
Ned Naylor-Leyland is the investment director at Cheviot Asset Management. In an interview with CNBC, Ned says that there is about a 100 open positions in the gold paper market for just 1 bar of physical gold. “The numbers are pretty frightening”.
This means that there are a 100 people who have electronically “bought” gold but there is just 1 bar of gold. Need any more reason to switch to physical. Ned goes on to add that he believes 2012 will be the year of delivery. As people start to realize the importance of owning gold, more and more investors will put their money in the physical gold.
When asked about if he thinks the gold market is manipulated, Ned states that he believes the gold market is rigged and that investors are currently running scared from the paper markets after the MF Global fiasco resulted in millions of dollars of client assets vanishing into the unknown.
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