Why 98% of gold investors don't actually own a gold bar—and why that's a problem

2026-01-25 19:43:03

Source: CryptoNewsNet Original Title: Why 98% of gold investors don’t actually own a gold bar—and why that’s a problem Original Link: There is a buying frenzy in the gold market that has propelled the price of the precious metal by more than 80% over the last 12 months, making it one of the best-performing assets.

However, investors aren’t paying attention to a hidden threat that is forming beneath the surface, according to Björn Schmidtke, CEO of the Tether gold-treasury firm Aurelion (AURE).

The easiest way for someone to buy gold is to purchase what Schmidtke calls ‘paper gold’ or stocks of a gold exchange-traded fund. When buying such stocks, what investors think is that they have bought the physical gold bar, when the reality is that they have bought a claim to gold. People collectively agree that this claim has value, he said in an interview with CoinDesk.

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