'You can't pump gold': Goldman Sachs says gold has more in common with Manhattan real estate than oil

"You can't pump gold - but you can bid it out of someone's hands. Gold doesn't get used - it changes hands and gets repriced,"

"It's market clears through changes in ownership, not production-versus-use balances,"

"The gold price reflects who is more willing to hold it and who's willing to let go."

Gold's price recently passed a record high of $3,700. Almost all gold ever mined—about 220,000 metric tons—still exists in vaults, jewelry and central bank reserves. New mining adds only roughly 1% to that existing annual supply. Gold's value derives from accumulation and limited availability rather than consumption; it changes hands and is repriced when ownership shifts. Market clearing for gold occurs through ownership transfers instead of production-versus-use balances, so typical supply-and-demand metrics for consumable commodities do not apply. Manhattan real estate similarly exhibits scarcity-driven pricing, with average rent around $5,620 and average listing price about $1.4 million.

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