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in a free market, the price for any commodity should roughly track the cost of producing it.
by empath75 6y ago
in a free market, the price for any commodity should roughly track the cost of producing it.
- rantwasp 6y agoyou're working with the assumption that it's a commodity. It's more like a currency than a commodity. also, is the price of gold for example really tracking the cost of producing it?
- empath75 6y agoEither side of that equation can lead — if the price of gold rises from speculators, miners will start employing costlier means of extracting the metal to meet demand.