Ever been to the races or taken a bet on a horse? It's a futures contract..if your horse wins you take delivery of your cash, if it doesn't you lose your bet.
It's that simple, futures contracts are everywhere.
Ever had a mortgage? You're betting the house price is going to go up, because you're using someone else's money to bet on it. Because if house prices go down you're going lose, like a lot of people are at the moment.
Lots of people are heading into negative equity, a very parlous situation.
Anyone can buy a gold etf on the NYSE that doesn't own one ounce of gold, and this one is a double bet.
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