Grant Williams tells King World News:
“So we’re getting to extremes here, and there are a lot of smart people saying, ‘You need to be very, very careful here. You need to be out of these markets, or ready to get out at a moments notice.’
And I think the opposite of that applies to the gold market, where people have sold the gold market down. People are already out and others are recently trying to push gold lower to make a little bit more money. But if you are shorting gold down here, you need to be ready to cover your position and get long in a hurry because when it turns, there just isn’t any physical gold around. So if you are short gold and you are trying to chase it, you are going to have to chase it a lot higher.”
Eric King: “Grant, the paper claims on gold have now hit new all-time highs.”
Williams: “It’s an extraordinary phenomena. There are 69 people with a claim on every ounce of gold on the Comex warehouse (see chart below). But if you think about what it means, if you think about a coming time where, like the Bundesbank said, ‘We want our gold back,’ we are not talking about 3 or 4 entities coming in with claims on every ounce of gold, instead we are talking about (roughly) 70 people. ...