Sadly it doesn't work like how you suggest. Producers are price...

Sadly it doesn't work like how you suggest. Producers are price takers not price makers. The physical market and all stakeholders that system entails is controlled through the LBMA (London Bullion Market Association). The LBMA has systemic controls over a producers' ability to sell and even has it's own derivative tools like forward contracts and an options market unique to itself.

Thus, producers are price takers because they must sell their product to mints for refining and they are all part of the LBMA system.

When and if you have the time to study fully and investigate the whole gold market system you will need to have strong fortitude to avoid being eternally depressed. The LBMA system is inter related to the Futures system that is inter related to all other derivative systems and in total rides rough shod over the price of gold. Pieces of paper and the massive leverage allowed with such is used by TPTB to manipulate the price to suit the masters. Big players go along for the ride.

Many years ago when I studied the systems behind the gold price there was so much paper being played that the counter party ratio per oz of gold was said to be 100:1.

Since then, about 15 years ago, this ratio has recently been stated to be 200:1 as indicated in this article linked as follows:

https://www.google.com/search?q=what+is+the+present+ratio+of+paper+to+gold&rlz=1C1EKKP_enAU698AU712&oq=what+is+the+present+ratio+of+paper+&gs_lcrp=EgZjaHJvbWUqCggGECEYFhgdGB4yBggAEEUYOTIHCAEQIRigATIKCAIQIRgWGB0YHjIKCAMQIRgWGB0YHjIKCAQQIRgWGB0YHjIKCAUQIRgWGB0YHjIKCAYQIRgWGB0YHtIBDjE5MDI1ODczOWowajE1qAIAsAIA&sourceid=chrome&ie=UTF-8

The introduction of ETFs that really started to boom following the GFC has been a major contributor to this craziness. Some commentators like Zerohedge, amonst others, even suggest this ratio is higher.......... heading towards 300:1

Even the Futures Market has got onto the ETF band wagon by introducing Swaps or some such derivate instrument to use physical gold supposedly held in an ETF Fund as collateral and even more paper gold. All leveraged paper transactions of course.

It is not a level playing field. The TPTB have given birth to a monster and if it ever gets off the leash then it will cause financial armageddon. AND..................... that is why the POG is so highly manipulated. The big boys know the game and know how to profit from this manipulation. As Mayer Rothschild is quoted as saying in relation to control of money: (and is very appropriate for the control of the POG nowadays)...........

• "The few who understand the system, will either be so interested from it's profits or so dependent on it's favors, that there will be no opposition from that class."