To re-phrase in my own words, as I am just an average "Joe-six-pack".

When Joe-Six-Pack wants to buy gold, instead of buying physical and getting it out of the market, he buys ETF's, because they are cheaper (Spot plus a small admin. fee) and easier to obtain.

The purchase does not tighten up ther physical market, and gives the manipulators room to keep manipulating.

Yes, you are right! It is, in the end, just another piece of paper.

Good Luck to all!