About Delivery Ratio and Cover Ratio at the COMEX

Interesting article by Jan Skoyles.
http://therealasset.co.uk/comex-2-paper-gold/

The summary says to us that the amount of gold bullion backing COMEX obligations is at an all time low (Cover Ratio). Meaning, there is very little gold backing at the COMEX.

If the delivery ratio (amount of delivered gold against contracts) ever spikes upwards, the COMEX could get under stress. Today, we are still fine, because people aren't really taking delivery as much as they should be.

Also notable is that registered stock is declining at a much faster pace than open interest (which is actually still very high). Such things cannot last, as this huge amount of leverage will blow up one day. You just can't trade contracts at this level without any physical backing of gold.