14.01.2014 - How gold differs from all other commodities
Most financial analysts, including some who specialize in precious metals, analyze gold as a commodity however gold is not a commodity since unlike other commodities it is not consumed. Therefore, the traditional economic models and theories of supply and demand simply do not apply when analyzing gold. Gold is a monetary metal and as Prof. Antal Fekete says, “in the case of monetary metals, in contrast with all other commodities, high and increasing prices may not bring out new supply. Rather, they might make supply shrink. Monetary metals are exempt from the law of supply and demand.”..............................................Full Article: Source
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