27.02.2009 - Could the gold price collapse?
From Fnarena.com: What pushes the gold price? Let's break it down. The first, simple, equation to consider is that of demand and supply. We'll look at demand first. Gold is an unusual beast in that it is both a commodity and a currency. On the commodity side, there is some industrial usage of gold but the bulk of "commodity" demand is derived from the jewellery market. Indeed, so proportionately minimal is gold's use in industry that we'll completely ignore it within the equation. Thus we can say that gold is never consumed or destroyed. Even when a piece of jewellery or some other trinket is melted down, no gold is lost out of the sum total. This makes gold virtually unique..... Full Article: Source