>there isn’t enough physical gold or silver to cover everything What does this even mean in the context of trading derivatives of commodities? Of course there

>there isn’t enough physical gold or silver to cover everything What does this even mean in the context of trading derivatives of commodities? Of course there isn't, people financed other purchases by borrowing precious metals and selling them, or trading futures on margin with no physical position. Isn't that literally what this market is? And, like it or not, it's the endpoint for all holdings of non-productive assets. Lease the metal back to traders and make 1%; hold it and pay 1% in storage fees.