I am not a financial genius, nor do I claim to be, but I cannot understand why a person would entertain the thought of purchasing paper gold. It’s a ridiculous concept to me.
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It works like any other commodity. If you buy or sell oil, you usually don’t want to take delivery of the actual oil. You are betting on the price going up or down.
However, you can take delivery if you wanted.
So, if only a tiny number of people wanted to take delivery, the gold isn’t there.
They are seriously over selling gold that they don’t have.
Maybe that would be the proverbial straw, but we have become so used to financial abuses that might not do it either. As I understand it, it’s the same principle (or lack thereof) as fractional reserve banking or hypothecation/rehypothecation, so if one participates in banking or investments at all, it’s pretty hard to get away from.
As for me, I’m a simple sort, if I own something I want to be able to get my hands on it if I need it in a hurry. Guess I’ll never be rich, but I sleep pretty well.
Mrs. AV