paper gold default report - february edition, page-3

Timber,

I really have no issue with the COMEX and paper gold trading so don't get me wrong, I don't really pay much attention to it or care about it.

But I have a question, do you find it wrong that traders can buy 40 million ounces of "gold" in one period (even if they don't plan on taking delivery)?

It's probably a pretty safe bet that if everyone decided they wanted their ounces, that 40 million of them couldn't be procured. Therefore I see it as slightly dodgy that that volume of contracts is able to be sold to begin with

With a publically traded stock, if they have 100 million shares on issue, only 100 million can be sold. There isn't 150 million available for purchase.