Aldebaran

Options/Futures/Swaps. Mostly those are cash settled. I write (sell) a Option to deliver 100 ounces of gold on a particular future date - or many multiples of such contracts. Come that date and the contract expects the seller of 100 ounces of gold to be provided to the buyer. With many such Options/Futures contracts however, oil, pigs bellies, whatever many don't actually want to take delivery, rather they'll accept (or pay) the cash value/difference instead. Investors aren't buying to get a ton of pork delivered to them at home, rather they're buying to hopefully make gains, more money. Similarly sellers/writers create those Options in expectation of making money. One side wins, the other loses, same with any other investment such as stocks. When there are few taking actually delivery of Options, cash settlements instead, so more Options/contracts are created than what actual amount of gold/whatever is actually available. What is commonly considered as being paper-gold, exists on paper only (or nowadays in a computer system/virtual). Basically its a way to leverage, scale up gains (or losses) relative to small changes in prices. The market is more efficient when leverage is being used as even a whisper of a small change can yield a decent profit (loss) that otherwise non-leveraged might incur too much in the way of dealing fees/whatever in order to be viable to arbitrage.
You can generate a form of 'dividend' from gold with Options/Futures as the price includes a element of time-value, reflective of interest that might have been earned/paid over the length of time of the contract. So some investment houses may hold gold and buy (or sell) some Options/Futures rather than just holding gold alone. Or even just buy (or sell) Options and hold no gold. The sellers of contracts often buy those back again just before expiry (delivery date) in order to avoid having to find (buy) gold in order to hand over to the Option contract holder.
The 123 paper-gold to gold ratio is indicative that a lot more gold is being offered for delivery than what gold is actually available. If all of those that opted to buy contracts did so with the intent to take delivery of physical gold, not sell those contracts before the contract expiry date, then there's no way all of those contracts could be honoured.

Just tell em what they want to hear - my prediction for next week is 70 quint million zillion
A new ATH might be hit before the end of the month, either this week or next, but equally I don't think it's sustainable
I'll go for a close of £1927 next week but I'm stick to anything above $2400 is too hot for this time of year. Look to September for the rocket launch

Member in the tuck shop at primary school when you put in an IOU to pay back the 55p it cost for a tin of coke, 3 packets of crisps, 2 freddos and a Lambert and Butler?
Did you ever pay it back? That's paper gold

https://www.goldpriceforecast.com/explanations/paper-gold/

Totally lost , 133 times more paper gold than real gold ??? what’s paper gold ??? How do you get it , and how do you cash it in ??? as in change it into cash , thanks 

pm'd

Both 2012's sold.

Britannia's, exempt from capital gains tax in the UK, stack of 10 at a time and you might typically buy at a spot+2.5% price level provided you hunt around. Sell back 10+ and you may get spot. Bullionvaults pricing is much like a £300/year fee, 0.1% cost (actually presented as 0.5% on the first 75K value you trade in a single year, 0.1% thereafter (0.05% once you hit 875K+)).
Initial 50/50 of both costs around spot + 1.3%
If the price of gold goes down, sell some of Bullionvault gold, buy more Britannia's ... you have a bookable capital loss in that year that you can use to offset capital gains in other assets such as stocks.
If gold does up, sell some Britannia's, buy more Bullionvault gold, so paid a higher price for the taxable gold that may subsequently see prices decline to where you can sell/book a tax loss.
The tax savings that may provide could offset the costs/spreads, as though you'd bought/sold gold with no overheads/spreads. As well as diversifying your gold, with Bullionvault for instance you can buy/sell at any time of the day/night.
The 0.12%/year fee Bullionvault levy for vaulting/insurance is very competitive, but does mean a 40K minimum deposit (otherwise the 4/month cost, 48/year would be a higher percentage value for smaller holdings). But if you were down at levels where that mattered you'd probably not be bothered with tax-harvesting strategies anyway.

Westminster are one of the worst. 

Yes, things like this are much like the marketing of the royal mint. 
@BackyardBullion covers videos about this in his "Royally Screwed" videos. 
These companies are preying on people who don't know the hobby too well, like you said, essentially charging £18 for a bit of plastic, a printed leaflet and some wording. 
It is sad to see, I noticed a while ago their circulation olympic 50ps were wildly priced. 
I remember @paulmerton pointing out to me recently they were doing a buyback of many coins. They were giving you £2.50 for old round pounds, which were worth £1. Then selling them in sets for about £10 each. Some of the condition of the coins were terrible. Heavily circulated, bought from the public just months before. 
I know these companies are businesses and have to make money but properly ripping people off is not on. 
I had a mad amount of those crowns recently. Bought them in a job lot of coins from a bootsale. I sold each one of them back to a coin and antique shop for 50p each, more than the 25p I was expecting. 😁
 

I've never been particularly impressed by what Westminster Collection put out and recently my parents bought a 1965 Churchill Crown Collector’s Frame for £20 from them.
I was disappointed to find that a coin just like it could be had on eBay for £2 or less. They essentially paid £18 for a plastic holder and a bit of card.
If you or someone you know is getting into the hobby, there are better places to buy.

Some bullion sovereign's for sale:
 
1958 Gillick    - £450     SOLD
2 x 2012 Royal Mint sealed Diamond Jubilee   - £455 (each)     SOLD
 
Includes Royal Mail Special Delivery.
Bank transfer or Paypal F&F. UK buyers only please.

I was quite polite tonight missus 🤣

Worst thing about this is, now I have looked at it, I am receiving emails from eBay suggesting that I make an offer 😂

Oh no - not again😆

Great photos 😳

Looks a little rough…🤔

I have available the following sovereigns
1875 M - £450 SOLD
1889 - £448 SOLD
1890 ×2 - £448 SOLD
1891 M - £448 SOLD
1892 - £448 SOLD
1893 S - £448 SOLD
1905 P - £448 SOLD
1912 P, lovely grade with mint lustre - £447
1912, lovely grade with mint lustre -  £450 SOLD
1913 M, lovely grade with mint lustre - £450 SOLD
1922 P, good grade with trace of mint lustre - £450 SOLD
2000 - £445
Plus post. 
 

Plenty of people (on here) to buy, but as previously mentioned, smaller fractional stuff will become more popular, a full sovereign being a major purchase 🤔😮

Well, he still hasn’t replied to my message which asked why such a stupid asking price🤔🤔😮

offer 50p plus post, its probably ok to get it for £1.25 tbh 🤣

I was going to offer 99p but I was worried it would be accepted.

A big thank you to @9x883 for this beautiful 2003 1oz Britannia.
This is my favourite image, to me it represents courage and sacrifice and I am reminded of the British nurse Edith Cavell, who in WWI was executed for assisting allied soldiers escape from occupied land.

Thanks to @ilovesilverireallydo for this 2008 £5 Commemorative - 450 year anniversary for the accession for Elizabeth I.

Worst thing about this is, now I have looked at it, I am receiving emails from eBay suggesting that I make an offer 😂