Most gold that is traded on the market isn’t actually gold; it’s paper or digits on a computer. In the same way your bank does not actually hold your savings in cash in a vault, gold brokers do not actually own all the gold that they trade. In fact, for every ounce of physical gold, there are at least 200 “paper” ounces.
Besides the obvious moral implications of trading something that doesn’t exist, this causes other problems. For example, it allows the true price of gold to be manipulated more easily. Also, what happens if, for any number of reasons, too many people want to take possession their physical gold? Recently when MF Global went bankrupt, Gerald Celente, and countless others lost over $1.6 billion when 33,000 client accounts simply “vaporized”. So let that be a lesson for you: if it’s not in your hand, you don’t own it.