jpmorgan's eligible gold plummets 65% in 1 day, page-6

Danhoff

"we have a lot of paper gold holders that dont have any physical gold behind the paper."

Those holders of "paper gold" (gold futures) haven't paid for anything, so it would be a bit odd if they had title over any physical gold behind the "paper".

Futures 101: When a buyer buys a futures contract the buyer enters into an agreement to take delivery of a certain amount of gold at a certain price on a certain future date. They haven't yet paid for the gold, and don't pay for it until they take delivery.

"Do the clearing housed have the gold."

Central Clearing 101: Whether the clearing house has the gold at the time futures contracts are bought and sold doesn't matter. The only thing that matters is that the sellers who go to delivery have gold in their accounts to deliver at the required time. If they don't, they are in default, and CME buys the gold required to meet their delivery obligation in the spot market and uses the defaulting parties margins to compensate themselves for any losses, being the difference between the sale price and the price CME has to pay buying in the spot market. (You will notice that even when futures buyers and sellers default, there is a mechanism that locks the futures and physical prices together. Hence no price "disconnect".)

If you stopped using the term "paper gold" (which has no meaning in the market) and called these financial instruments by their proper names (and maybe taking time to understand what they are) you might be less confused.

I don't feel picked on when you get the facts wrong.