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Microeonomic Affect on Gold Price Hiking

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Submitted By rosfiza
Words 1877
Pages 8
The research is done to evaluate the impact of the palm oil price changes on the buyers and the sellers with the relation with the demand and the supply of the palm oil in the market. Gold h become the trend of nowadays and people tend to invest their money in gold to for the stability in future. Thus, the price of the gold is keeping increasing and the impact may not the same as the other kind of commodity such as crude oil and rubber. The few stock of gold in market and the investor attitude in keeping the gold gave the influence to the price in the market. As the gold is having the value on its on interior value, there is not much advancement of technologies in the industries. This supply will never increase in the market with the high demand each year especially on the festive seasons, thus, the gold price will always increase.

Abstract

Keywords: Gold, Commodity, Supply, demand, price.

Introduction

The articles “The Gold Rush is on” was cited from The Star Online written on 5 May 2011 by Vijenthi Nair. People are now rushing to by the gold as the price of the gold was kept on increasing each week. Even though the price is hiking non- stop gold lover is keep on hunting for the gold as they are fear the price will go even higher. The price increased has created the demand for gold to become higher as people have non-stop buying due to a lot of speculation created. In spite of it, people still hope for the price to go lower as they will buy more for the future investment. The increasing of the gold demand had also keeping up the demand for the supplementary jewelleries to the gold such as diamond and follows the upward trend. For the investors, they choose to invest in the gold wafers and bars rather than the gold accessories due to the price are not including the payment for the decoration and the design of the gold as well as the price stability.

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