Gold

[Peter]

https://goldswitzerland.com/

The gold price is determined in a Casino with massive leverage and has nothing to do with the real price of physical gold. More about that later in the article.
But if we look at the daily trading volume of gold it is a staggering $187 billion, and thus greater than annual production.

That makes annual gold trading $48 trillion or 1,030,000 tonnes. All the gold ever produced in the history is 170,000 tonnes. So annual gold trading is an incredible 6X all the gold ever produced in history and 300X annual mine production. It is important to understand that this gold trading is virtually all paper trading with a very small percentage of physical

 

[Skyrocket]

What other pyshical asset gets it's price valued from the derivative?

 

[Slimey]

If you want to focus on trading volume you need to consider a few things. All contracts have 2 sides. On any day you will not know how many contracts are simply churning ( multiple turnovers ). How many contracts get closed out before the end of trade? You cannot assume they are all new contracts which are going to be carried forward. Gold is risky business. Even on the share market, Norita Health Care has about 650 million shares on issue and has turned over that volume in the last week.
You cannot use volume traded as a metric. It is a reaction.
The paper market is an important structure and despite the rhetoric, I have never seen a gold ‘shortage’ such as one would expect if the market was ‘manipulated’.
If you want to see what real ‘manipulation’ is you only have to look at the old photos of Russian supermarkets in the 70’s. Fixing the price of food is wonderful but only if you can ignore the reality of true cost. As a consequence, the shelves were empty. When I see a coin/bullion dealer with empty shelves, then I will agree that there is a problem.

 

[jultorsk]

I quite enjoyed listening to his keynote at GAIC just for the sake of him being a very well connected and very comfortably wealthy individual who is old enough not to give a damn what others think of his assertions (which included central banks, debt, negative rates, EU, euro, Merkel and many other topics; with very bearish tones for the current economic policies). Here's another sample of his writings (https://goldswitzerland.com/buy-gold-before-marxism-destroys-your-money/):

"Most of the printed money since 2006 was intended to prop up an insolvent financial system. Thus the money stayed with the banks and could be used by banks and bigger investors to leverage their investments and thus their wealth. This is why especially the Western world has seen a totally unprecedented gap develop between ordinary people and the mega-rich.

As long as normal people have jobs, housing, food on the table and social security they will not revolt. But in the next few years, as the 2006-9 financial crisis returns with a vengeance, the world will rapidly change. Massive money printing will lead to depressionary hyperinflation which will turn into a deflationary implosion of the financial system 2-3 years later. As the depression takes hold, many people will have no jobs, no money and no social security.

This will lead to empty stomachs and social unrest. Marxist left-wing governments will come to power and in some countries there will be right-wing fascism. Marxist governments will attack the wealthy, just like Corbyn is doing, and turn the people against this privileged group. Attacking with words will lead to physical violence and prominent wealthy people will be targeted. Many will rightly fear for their security and lives."