When ‘paper’ gold and silver runs out…

In an article posted to our website today Bill Holter talks of the significance of the next few days with futures contracts due for delivery on the Comex with insufficient metal to cover them (btw this is probably also the reason they hit the price down so much last week).  He points out the disconnect of paper and physical gold and silver prices is already playing out to a small degree with high premiums in China, India and even Silver Eagles in the US.  He sees the ultimate unwinding as close given depleted paper gold inventories and the final death spiral brought about by people using arbitrage to buy cheap paper gold, demand delivery and selling at the higher physical gold price in the East.