Comment on Is gold investing a scam?

<- View Parent
sobchak@programming.dev ⁨2⁩ ⁨weeks⁩ ago

It pretty much is the same thing. In theory, shorting the ETF will drive the price of gold down (until the short needs to be covered; like all shorts), because all accounts must eventually be settled. The price of gold is literally set by the futures market, which people with the appropriate approval can also short. Gold dealers literally look up the price on the futures market and add/subtract a few percentage points to determine how much to buy/sell physical gold for.

source
Sort:hotnewtop