Lets see roughly 37 million ounces of gold trades per day,which is 1,151 tonnes of gold.
There is a total of gold in the world of 128,000 tonnes give or take.
30,000 tonnes of which are in one Central Bank vault or another, an additional 35,000 tonnes of which are on the necks of the Indian population or in one of the Indian private hoards, 25,000 tonnes are estimated to be on a physical object such as King Tut's Mummy ,the glass of numerous skyscrapers, collectibles ,arifacts, computer and cellular phone connections , dental uses ,armour,jewlery,royal treasure,fireplace fixtures,plumbing supplies, numismatic coins and various pieces of gold artwork etc.
That leaves roughly (128,000 - 85,000)= 43,000tonnes in total of physical gold that could be traded in a physical form at the LBMA .
You are showing they trade 1,150 tonnes of gold every day that is 25,000 tonnes per month. Or 58% of the total available gold in the world every month. Or another way of saying that would be the total available gold in the world is traded across the LBMA every year SEVEN TIMES . Put another way the total world wide production in 1998 was 2550 tonnes. According to the LBMA numbers they trade the entire world supply of gold production every two days. Doesn't anything strike you as odd here?
These trades they report are the gold deriveitives that have become a much larger market than the physical gold itself. They are the paper promises to deliver gold made by thousands of counter parties 99% of which are never settled in physical gold but are settled in money at the spot price. they are paper transactions.
The shear volume of which is evidence that the physical market is way out of balance.A direct legacy of hedging. |
