# Structural Failures of the Current System

**Fragmented Liquidity**

Gold trades across disconnected venues — COMEX, LBMA, SGE, OTC desks — each with its own rules, settlement cycles, and accessibility constraints.

**Custodial Opacity**

Paper gold instruments dominate volume, but obscure:

* Whether gold is allocated<br>
* Whether it is rehypothecated<br>
* Whether delivery is realistically available

**Settlement Inefficiency**

Gold markets operate on limited windows, with slow settlement and jurisdictional friction that prevents global capital efficiency.

**Paper–Physical Divergence**

In times of stress, paper gold prices and physical availability diverge — undermining trust in the system.

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