Loading ...In general, rapidly climbing prices cause Producers then to lag or delay selling. (oil gold etc)And, at the same time, Consumers buy ahead of time to save money, avoid payer more later. Aka hording. If Copper 4X8 sheets are climbing and I need ten per year I’ll buy 10 at once. If the price is falling I’ll buy one sheet at a time. Same with gasoline. Remember the lines?? Everybody topping off? Gasoline .25 to $1.25?? Factor of 5?
Supply and demand USED to determine the prices. Now the fluctuating US Dollar prices decide the supply and demand, to a point. After which the distortion gets extreme enough to cause a reversal of the trend. Natural supply and demand balance PRICE is fleeting, temporary. But overall natural production and consumption is normally fairly stable.
I once heard T Boon Pickens say…”If I have thousands of barrels of oil, and its climbing, why should I sell it this month”?
Nobody can over produce gold. Higher prices would hopefully pull in recycled to feed consumption for jewelry investing etc.