The same happens with speculative investments in tangible commodities like oil or wheat. Again, speculators have no use for the commodity in question, but they drive up prices for those who do. We all contribute to the unearned wealth of speculators each time we put fuel in our cars. And in poor countries, hungry people pay with their lives when wheat prices are driven up beyond the means of governments to import sufficient to cover the shortfall in domestic production.
The bit you need Mark is Book IV, Chapter 5, starting at paragraph 40, of the Wealth of Nations.
That\’s where Smith points out the value to us all of having someone speculating in wheat.
Only 235 years old now the explanation. Should have sunk in by now, don\’t you think?