If the contacts don't open and close or you don't have a complete circuit when the points are closed or the points are grounded to that they never cause an open circuit, you'll have no spark. Hard to say whether the points will actually open the way you have them set up, I've never tried that.

When the points are closed, the coil is charged up with 12 volts. When the points open, the circuit is also opened and the electrical field inside the coil collapses, causing a transference of the electrical energy to the secondary side of the coil and generating a high voltage surge that is distributed to the appropriate spark plug.

The coil does two interesting things when the field inside it collapses. First, the collapse of the field causes a voltage spike that is about ten times higher than the voltage that was charging the coil. Second, that voltage spike is jumped up farther by the difference in the number of turns of wire on the primary side and the secondary side inside the coil. This is usually about 200:1.

That's how 12 volts gets to be a 25,000 volt spark, by jumping to about 120 volts with the initial voltage spike, then essentially running through a transformer (primary and secondary windings) that takes it the rest of the way.