- NSCLord
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- Noble Legendary Member
I am an unjust ban magnet. Thank you, Qbix89, you really are a rogue moderator. I hope you get disbanded soon.
Unjust bans on the main forums: 10
Bans on the main forms: 10
Posted by: A Good Troll
Posted by: NSCLord
Are you saying the price of gold is affected by its scarcity on the market, and that by announcing the quantity of the sale and in advance announcing it increased its supply on the market and therefore the prices fell?
Sure. Scarcity drives price, as long as demand stays the same.
This can work in government's favor for setting policies sometimes too - take the US Federal Reserve and their policy of buying mortgage-backed securities.
By saying they are willing to buy, and doing so publically, they say they are supporting the market as a buyer of last resort. People are more confident in buying, demand rises, and security prices rise - which is what they wanted (prop up the housing market).So the price of gold is effectively shared between each ounce, and with more gold becoming available, each ounce costs less?