what is the purpose of gold? what is its real use? why isn't south africa rich in pieces of paper if its so damned valuable? at least other metals and commodities have a purpose and react to the market in predictable ways unlike the now volatile and psychologically dictated gold market. I laugh when people say we will return to the gold standard, I mean why is gold more intrinsically valuable that paper. if anything we should start trading in energy or electricity which is the most valuable commodity of all things should be priced in watts not nuggets of yellow metal.
Gold is a very important industrial material.
Besides, you cannot trade energy or electricity unless you trade pure paper. Ya? Or please do tell me how to take delivery of 5MW electricity and where can I find a custodian in Nebraska?
Corp profits are high at the expense of even higher unemployment. There's so much value creation from outsourcing manufacturing to blood factories or sweatshops before shit hits the fan. Remember that good old Florsheim shoe company?
Besides, high corp profits can only go one direction. Down.
Either you own futures or own physicals. Same thing. Just after a certain size, its cheaper to have your own vault than paying someone else.
But not everyone understands the commodities market.