of course you completely miss what's going on. i, unlike you, accept the current spot price of gold for what it is. you, otoh, continuously claim that the real price of gold is somewhere north of $2000 based on absolutely no evidence whatsoever.
Actually, I do accept the spot price for what it is: a lie of omission.
The spot price is not a valid market valuation for physical
metal that actually has to be produced through work. It is a perfectly valid valuation for paper representations
of physical gold, particularly fractional
representations. The participants are overwhelmingly the very institutions that have an interest in obscuring gold in the first place. There's enough evidence from the multiple
dumps of futures contracts totaling more metal than is pulled out of the ground on a yearly basis - there is no way to deny that those contracts
are functioning as derivatives, not 1:1 claims on real assets. In effect, futures contracts are margin ownership of the underlying asset, and taking delivery is like being among the first to withdraw your money from a Ponzi scheme, leaving others to watch in horror as their paper investment, which was assumed to be firmly tied to a real asset and not just marginally associated, crumbles.
If you have a piece of paper that proclaims its worth as being a valid claim for one Shadow Hawk
, and I deliver an actual vehicle to you from across the continent in exchange, that piece of paper had better be worth the amount of effort I went through to procure and ship the real
item. If not, I won't accept your piece of paper, and if you still want the vehicle, you will
make payment in whatever form I
choose because I
own what you
want. In that case, the paper declines in value while that of the actual, physical
object rises. Now that I know you're in a weak position because you want the real thing, I'd be apt to increase the price by a few points for the hassle.
The majority of market participants don't analyze the foundations of the entire monetary system. Instead, they assume what is either in their textbooks, or what financial advisers and Warren Buffett tell them. There is little to no attempt made to discern the difference in supply & demand dynamics of financial instruments and real assets. Sure, MMT
works in an abstract sense where financial instruments roam, but it fails spectacularly when it comes to the limits of reality.
Why is gold not $250/oz already? Why is silver not under $10/oz? Why is oil not free?