Gold Prices Supply Demand & Equilibrium
A difference of opinion is necessary for any market to exist. If all buyers or sellers thought the same, the price would change dramatically until about half of them changed their mind, allowing supply demand to reach equilibrium.
Many potential investors get confused by seeing and hearing conflicting advice about gold, as with any other investments. Conflicting advice is entirely normal. The sensible investor should listen to both sides of any argument, giving reasoned consideration to all arguments, before making his own decisions. The time to worry about advice is when everybody says and believes the same thing. At this point as wise investor would question whether the obvious was in fact the correct answer.
When all believe in the same thing, the time is ripe for a "bubble" such as the Dutch Tulip, South Sea Company, or Internet bubbles.
At this point it would be worth thinking what a canny investor like Warren Buffet would do, and the answer is almost certainly that he would not go along with the crowd of sheep, but would be more likely to do the opposite.
Any equilibrium reached is likely to be temporary, as sentiments change, and market conditions fluctuate. Although equilibrium is the stable state of any market, it is not necessarily, and rarely remains, static for any prolonged period of time.
Lowest Recent Gold Price
Does the drop after this price peak mean an end to the gold bull market, we believe not, more of a correction.
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