Comment: It is being manipulated

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In reply to comment: then why isn't the market (see in situ)

It is being manipulated

I always worried about this when ETFs started to become popular. Paper gold, gold where you have a promise of an amount of gold instead of actually taking possesion, is easy to manipulate. All you have to do is sell the promise for the same gold to multiple people to make it appear that there is more than there actually is. Since there is no shortage in the supply of empty promises, the high demand for empty promises is easily covered. The paper gold market is much bigger than the physical market so this is where you manipulate the price. As more people continue to demand physical possesion, the price will begin to be set by the physical market.

I guess I'm not alone