Not everybody thinks that having a “claim” on gold is as good as having real gold in their physical possession. Especially when fractional reserve banking for gold is common practice, and with the COMEX and other gold selling/trading organizations leveraging up their gold by 100:1 ratios of sold paper claims to gold vs. physical gold actually in their possession. Can’t imagine why... /sarc OFF
The COMEX is becoming a paper only exchange. This is useless to anyone that must have (jewelers need gold, tech companies need silver) or those that want the actual commodity. The Shanghai exchange will probably take over because they will enforce forfillment of contracts under penalty of prison. It won’t be long before there is a substantial difference betwee paper gold contracts and the real thing.
It also seems that other countries are de-dollarizing. China, Russia BRICS nations etc aren’t trading in dollars; the petro-dollar is weakening. This would create demand for something else such as gold.
We also have a huge slide in the Yen because of massive money printing in a futile effort at debt monetization and to make Japanese exports more competitive. However, China, Korea, and other manufacturing nations will likely follow suit by devaluing their currencies in a race to the bottom. This creates quite a bit of instability and these countries might turn to gold for stability.