Imagine that, there is a financial instrument called a (Paper) Gold Certificate, that allows wholesale buying & selling Gold easily/quickly.
Imagine that, normally, each Gold Certificate represents a certain amount of physical gold stored somewhere.
(So, the relationship between Gold Certificates & physically stored gold is one-to-one.)
Imagine that, someday, some gold certificate companies pressured/tricked the (US?) government, to remove the one-to-one limit/condition!!!
Imagine that, afterwards, they start printing gold certificates non-stop & keep selling them in international markets!!!
Imagine that, they keep doing that endlessly for years & years!!!
Would not you think that, this (global) scam, would comeout sooner or later
& would cause whole global gold markets to collapse???
(Realize that, the global market collapse would surely cause gold price to skyrocket!!!
So, if the scammers secretly bought back & stored physical gold, they could make much more profit (later), than just selling their spurious gold certificates!!!)
(There are also paper certificates for other precious metals, which can also be used for scamming the whole world, the same way, for sure!!!)
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