In a 1974 cable released by Wikileaks, primary dealers explicitly planned to use gold futures volatility to "diminish initial demand for physical holding and negate long-term hoarding by US citizens." Furthermore, these primary dealers were of the opinion that U.S. citizens, on the whole, weren't psychologically prepared to switch from small scale gold purchases to large scale, long term bullion hoarding except maybe for gold coins. To put things in context, this was just after it was now legal again for American citizens to own physical gold and the predictions of the primary dealers turned out to be true. As of today, paper trading of gold surpasses physical demand for gold and is 200 times larger than the latter.
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"In a 1974 cable released by Wikileaks, primary dealers explicitly planned to use gold futures volatility to \"diminish initial demand for physical holding and negate long-term hoarding by US citizens.\" Furthermore, these primary dealers were of the opinion that U.S. citizens, on the whole, weren't psychologically prepared to switch from small scale gold purchases to large scale, long term bullion hoarding except maybe for gold coins. To put things in context, this was just after it was now legal again for American citizens to own physical gold and the predictions of the primary dealers turned out to be true. As of today, paper trading of gold surpasses physical demand for gold and is 200 times larger than the latter. "
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