There's a simple counterpoint to your argument: there are places that were selling physical gold for $2000 a decade ago, that were selling it for $3000 back in 2024, and that are now selling it for $4000. I don't see any of them going out of business. Online, Apmex and dozens of others seem to be doing just fine.

So evidently, there is healthy retail demand for gold at these price points. Futures markets can get weird, but they're ultimately rooted in demand for commodities. I can't sell you futures on something that no one is willing to buy.