Summary: This article shows how, despite a record price on November 16, gold prices may go even higher due to increasing demand and a lower supply. Although there are certain companies who are able to replace their gold reserves each year, most cannot. This is ultimately leading to a shortage in gold. This along with an increase in demand for gold products is leading to an increase in the price of gold.
Connections: The law of supply and demand is present in almost all goods. When an item is readily available, the cost of it is cheap, but when it is hard and costly to find,(like gold) the cost increases.
Reflection: Gold has been viewed as something that retains its value over time better than cash. This article further supports that by showing that as the economy worsens, more people go to gold because of its safety as an investment. Now with the economic crisis, more and more people are turning to gold instead of cash.
Reflection: Gold has been viewed as something that retains its value over time better than cash. This article further supports that by showing that as the economy worsens, more people go to gold because of its safety as an investment. Now with the economic crisis, more and more people are turning to gold instead of cash.
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