Supply and demand dilemma for gold
When it is comes to gold, the fundamental laws of economics might not be applicable. The rule being that when demand is higher for a commodity then it’s supply decreases and price increases. But, in the case of gold it is otherwise.
The availability of gold in the market is short, but demand for the metal has rocketed skywards and is still increasing every day. Then, obviously the price for gold would be very high, whereas it is not. The price for gold is not parallel to its demand or its scarcity. Though it is scarce and has a high demand yet. Its price remains low.
It doesn’t make sense at all. As if the laws of demand and supply is annulled.
Find out more in: http://goo.gl/UO0XX