The Real Gold Price May Be Higher

China argues the physical gold price is suppressed because most gold trading is paper contracts on physical ounces, not coins or bars actually changing hands.

Since most paper contract buyers never claim physical delivery, sellers can theoretically sell more contracts than the ounces they actually hold to back them.

The actual gap between paper claims and physical gold can't be reliably measured — too many sellers operate across too many venues and instruments to track.

China and other Eastern economies have been the primary buyers and holders of gold for the past five to ten years.