Leverage in Paper Gold Hits All Time High

In another blog post I said the leverage of paper gold to physical gold at the COMEX was at record highs, but now we get another new record high.

Open interest was 397590 or 39759000 ounces in total. Registered stock is 590816 ounces (which is an all time low). That's a leverage of 39759000/590816 = 67. This is up from the last time when it was 56. I wonder when it will break.

COMEX gold stock

Leverage in Gold

Increasingly more people try to short gold down, but it seems they are not really succeeding lately. If people really start buying it, they won't find it as everything went to Asia.