The Gold market is 2% physical bullion and 98% paper promises - promises made by organizations that either have no gold or that hold 70 paper claims on every ounce.
The spot price is based on this fiction.
One day it won't be.
Sometimes I just don't understand what people are thinking, if they are thinking at all. The purpose of acquiring gold is to have something that's yours, is easy to keep safe, is easily identifiable, has a verifiable value, and can easily be traded or bartered. I'd think $5 gold bullion coins, current mint, are the best way to do that. I don't own any, it seems a little late to take that direction.
But why would anyone accept a piece of paper saying you have gold when the purpose of having gold is to have it?
Please, correct my thinking where I've gone astray.