While I do think there are a lot of paper out there trading hands in the gold market, I do wonder if gold is so insanely underpriced due to paper claims on it, wouldn't we see massive premiums in illiquid black markets for spot gold? How much is the premium there versus these regulated markets?

I've heard there's a lot of these gold dealers charging 10,20,50 even 100% above market rates in some markets, but are these scummy dudes or is that just premium for spot?