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Clint Siegner: Mine production may decline but there's still plenty of 'paper gold'
12:56p SST Tuesday, March 27, 2018
Dear Friend of GATA and Gold:
Annual world gold production seems to be about to decline, Clint Siegner of Money Metals Exchange writes this week, but there's never any shortage of "paper gold," claims to gold that may not exist.
"When it comes to trading in gold futures," Siegner writes, "the physical supply and demand for the metal is barely a consideration. Practically no one trading contracts cares about getting delivery. During periods of high speculative demand in the futures markets, the bullion banks stand ready to sell a virtually unlimited number of fresh new contracts. Physical gold may be scarce, but available paper gold has been limitless."
Siegner adds: "Someday the confidence in gold (and silver) futures is likely to collapse. Some event will prompt traders to look at the shocking amount of leverage built into the contracts. They will suddenly be uncomfortable with how little physical metal there is supporting the enormous paper trade. When too many begin standing for delivery of bars, they will be handed cash instead, provided their counterparties are solvent."
His commentary is headlined "Physical Gold Production May Be Peaking, But There Is No Shortage In Paper Gold" and it's posted at Money Metals here --
https://www.moneymetals.com/news/2018/03/26/paper-gold-vs-physical-gold-...
-- and at GoldSeek here:
http://news.goldseek.com/GoldSeek/1522094389.php
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org
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