Right now for instance there is approximately 115 paper oz for each physical oz. Unfortunately as long as gold contracts exist the price can be heavily manipulated by creating more paper gold.
Isn’t that the story of why Nixon finally ditched the gold standard? One of the European countries, France I believe, wanted to repatriate their gold. Then the United States was forced to say “Uh oh, um, we don’t have your gold, um, the dog ate it.”