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I just don't get the point. You buy something if you expect its price it is going up. If the price is going up, it means there is higher demand. If there is hig
by viandante 15y ago
I just don't get the point. You buy something if you expect its price it is going up. If the price is going up, it means there is higher demand. If there is higher demand, it means somebody does actually need more food (think of China and India).
I think the whole point of this article sounds a bit ideologic. Also, again, no really good data to prove his point.
- megablast 15y agoYou buy something if you think the price will go up, but this also makes the price go up. If a whole bunch of people think a commodity will go up, and start buying up, this will drive the price up a lot. A commodity does not have to change it value, or for there to be an increase in demand for the price to go up, all it needs is some speculation that it will go up, and a whole bunch of people looking to profit.
- viandante 15y agoI still don't get it. If people are buying and the value is not there, they will loose money, right? Speculators can also bid on a lower price (derivatives), right? So, who are all those crazy people bidding only in 1 direction (higher prices)?