Years ago, Bill Murphy used to talk about the multiples of paper Gold to real physical Gold. For giggles, I asked Chat GPT what that ratio really was. This is what I got:
The paper gold to physical gold ratio can exceed 100:1 in certain markets, meaning there could be over 100 ounces of paper gold claims for every ounce of actual physical gold. This disparity highlights the risks associated with investing in paper gold compared to owning physical gold.
With the Dutch repatriating $5 billion worth of their physical Gold in the past few weeks, I keep asking myself how much longer ( and how much higher) that ratio can go before something implodes. But we all know that financial “markets” can be irrational far longer that anyone can rationally think….