How Small is the Gold Market Today?

By: Adrian Burridge | Fri, Mar 24, 2006
Print Email

One picture is worth a thousand words right? I ain't very artistic so I ask for your help in drawing me this picture.

Everybody is familiar with the Million Dollar Homepage. (www.milliondollarhomepage.com) Right? On the website there is one million pixels.

If I drew you a picture called the Quadrillion dollar home page with each pixel representing 1 billion dollars and there were 1 million pixels like the above home page. (1 billion multipled by 1 million pixels equals 1 quadrillion). 1.5 quadrillion is the amount of derivatives traded every year in the world according to the 2005 statistics put out by the Bank for International Settlements (www.bis.org).

  1. The Gold in inventory at the Nymex - 2.5 million eligible ounces would represent 1.4 pixels on the entire page. http://www.nymex.com/GC_wareho.aspx
  2. The Silver in inventory at the Nymex - 55 million eligible ounces would represent less than 1 pixel. http://www.nymex.com/sil_fut_wareho.aspx

Remember the size of the gold market in comparison to the OTC derivatives market? http://www.canadianmilliondollarwebsite.ca/

Notice 100 pixels have been sold. If each pixel represented $1 billion dollars - the entire website would be the size of the OTC derivatives market. The 100 pixels so far that have been sold would still be larger than the gold and silver markets worldwide.

Disclosure:
(Long gold and silver at the time of writing).
I have no affiliation with the Canadian Million Dollar Website nor do I receive any money for mentioning it. This story was originally published on www.canadianinvestors.com. Try a two week free trial today.

 


 

Adrian Burridge

Author: Adrian Burridge

Adrian Burridge
CanadianInvestors.com

CanadianInvestors.com Inc. provides independent research on the North American equity markets. CanadianInvestors.com Inc. has no relationship with underwriters who issue equity to protect their larger loans. All positions are disclosed to subscribers. CanadianInvestors.com Inc. has been providing research on the internet since December 1999. Sign up today for your two week free trial.

The information presented in this publication is drawn from sources believed to be reliable, however the accuracy or completeness of this information is not guaranteed. Neither CanadianInvestors.com nor any of its affiliates accepts any liabilities whatsoever for any loss resulting from the use of this publication or its content.

It should not be assumed that the past performance of any companies featured in this publication will equal future performance. CanadianInvestors.com is under no obligation to update information contained within this publication.

CanadianInvestors.com does not accept fees or benefits of any nature from any corporation for the selection of the company within this publication. The information contained herein is for information purposes only. This publication does not constitute an offer to sell or the solicitation of an offer to buy any securities.

CanadianInvestors.com is not designed to counsel individual investors; those seeking specific investment advice should consider a qualified investment professional.

Copyright © 2005-2009 Adrian Burridge and CanadianInvestors.com All rights reserved.

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com