• 315 days Will The ECB Continue To Hike Rates?
  • 315 days Forbes: Aramco Remains Largest Company In The Middle East
  • 317 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 716 days Could Crypto Overtake Traditional Investment?
  • 721 days Americans Still Quitting Jobs At Record Pace
  • 723 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 726 days Is The Dollar Too Strong?
  • 726 days Big Tech Disappoints Investors on Earnings Calls
  • 727 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 729 days China Is Quietly Trying To Distance Itself From Russia
  • 729 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 733 days Crypto Investors Won Big In 2021
  • 734 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 734 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 737 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 737 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 740 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 741 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 741 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 743 days Are NFTs About To Take Over Gaming?
Adrian Burridge

Adrian Burridge

CanadianInvestors.com Inc. provides independent research on the North American equity markets. CanadianInvestors.com Inc. has been providing research on the internet since December 1999.

Contact Author

  1. Home
  2. Markets
  3. Other

How Small is the Gold Market Today?

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.

 

Back to homepage

Leave a comment

Leave a comment