Sometimes geopolitics creates strange distortions in the markets.
In Dubai, gold is being sold at a discount of up to $30 per ounce compared to the price of the London Bullion Market Association.
The reason is not demand.
The reason is logistics (I have written about this problem before).
Due to the escalation around Iran in the Middle East, flights are being massively canceled and delayed.
And this is a problem that few think about.
Gold is often transported in the cargo holds of passenger planes.
Fewer flights mean it's harder to transport the metal.
As a result, a paradox arises.
The world buys gold as a safe haven, but in one of the main hubs of the planet, there is a local surplus of metal that is difficult to send to buyers.
And then sellers offer discounts to get it taken on-site.
And here it becomes obvious:
tokenized gold $XAU is free from this problem.
It does not need to be transported by planes.
It can be moved between continents in minutes.
Sometimes the biggest distortions in the markets arise not from the economy.
But from planes that cannot take off.
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