3 ms·
> the biggest movement in prices is not because of demand and supply but rather because of speculation and gambling the movement reflects the expected future s
by chii 4y ago
> the biggest movement in prices is not because of demand and supply but rather because of speculation and gambling
the movement reflects the expected future supply and demand at the time.
The speculation is something that financial engineers use to offload the risks of such commodities from one party to another (such as from producers to consumers of said commodities).
- xbmcuser 4y agoWith the way derivatives are used these days to speculate/gamble they do not help rather result in the boom bust cycles we see in more and more industries these days.
- sigstoat 4y agoand when exactly do you think that changed? if “these days” are in some sense bad, when were the good ones?