Paper Gold and Real Gold Parting Ways

Noted at Zerohedge: Over a third of all the COMEX gold stored in Hong Kong was moved to mainland China this week.  So far, gold taken physically costs about the same as paper gold.  That is unsustainable because so little real gold matches up with notional gold.

From a Kyle Bass interview:

"We went and looked at the COMEX which at the time had about $80 billion in open interest between futures and futures options and in the warehouse they had 2.7 billion of deliverables. So, $80 billion in open interest and $2.7 billion in deliverables, we’re going to own it for a long time, you’re on the board, you’re a fiduciary, what do you do? Well that’s an easy one, you go get it." (He advised U of TX to take delivery of $1 billion in gold bullion.)