The futures markets were deliberately created to cause volatility in bullion prices, which would in turn discourage nations and citizens from hoarding gold.
The price volatility resulting from the futures markets is just one crime committed against people worldwide. Because these futures contracts can be leveraged multiple times over, this gives people and companies with large cash reserves a way to manipulate the spot price.
The Manipulation
Many of the large banks like JP Morgan, Deutsche Bank and others, have been caught manipulating bullion prices. They manipulate the price by shorting bullion with large quantities of contracts, which then drives down spot price. If they so choose, they can turn around and purchase bullion at the artificially low prices they caused. They can then turn around and put in fake orders to buy and drive the price back up, then sell their newly-acquired bullion at a profit. Despite being caught, the fines they pay are far less than the illegal profits they take in, so they have no incentive to stop.
The added bonus to the spot price suppression of precious metals is that many look to these prices as an indicator of economic uncertainty and prosperity. By allowing manipulation to happen, major governments can give the illusion that their currency is stronger than gold and silver, giving a false indication that things are going well in the nation.
The Good News
The silver lining to all of this is since we know the true value of gold, silver, etc., is artificially suppressed, buying now at current prices means you're getting your bullion for a bargain price, so long as you're careful to buy at the lowest premiums. Remember that when buying bullion you're in this for the long term. In the long run they can't keep up the manipulation as more people realize the truth and refuse to take part in their rigged paper market game.
