http://www.americanchronicle.com/articles/view/122955
Summary:
The price of gold is the talk of the town. Many people are interested because they own or want to own gold themselves. The demand for gold has risen so much that it is at its all time high. People are now trying to determine the value of gold to make a choice; whether to keep it and sell it later for more or to sell it while it's at a high price. Sooner or later there will be people making small profits and other parties with massive losses. Gold speculators argue that gold is a safe haven when currencies lose value. Since inflation numbers are slow despite the large amounts of money generated, gold is running on expectations that the feds will not be able to control the inflation later.
Connection:
Consumers tend to purchase cheaper goods rather than more expensive ones. Therefore if the price of the goods increase, fewer people will buy it. The connection between the article and the textbook is that the demand of gold has gotten so high that the prices may soon be uncontrollable which will affect the quantity demanded. The supply of gold is slowly decreasing which may cause the price of gold to rise even more.
Reflection:
With the fact that the price of gold may soon be uncontrollable is unbelievable. Who know how high or how low the price of gold will be in the future? With our economy in a recession and with gold retaining its value fairly well, I think it is a good idea to invest in it especially if you don't know the long term effects of our currency. If the demand for gold is so high now, it will be interesting to see what it is like after the recession.
Summary:
The price of gold is the talk of the town. Many people are interested because they own or want to own gold themselves. The demand for gold has risen so much that it is at its all time high. People are now trying to determine the value of gold to make a choice; whether to keep it and sell it later for more or to sell it while it's at a high price. Sooner or later there will be people making small profits and other parties with massive losses. Gold speculators argue that gold is a safe haven when currencies lose value. Since inflation numbers are slow despite the large amounts of money generated, gold is running on expectations that the feds will not be able to control the inflation later.
Connection:
Consumers tend to purchase cheaper goods rather than more expensive ones. Therefore if the price of the goods increase, fewer people will buy it. The connection between the article and the textbook is that the demand of gold has gotten so high that the prices may soon be uncontrollable which will affect the quantity demanded. The supply of gold is slowly decreasing which may cause the price of gold to rise even more.
Reflection:
With the fact that the price of gold may soon be uncontrollable is unbelievable. Who know how high or how low the price of gold will be in the future? With our economy in a recession and with gold retaining its value fairly well, I think it is a good idea to invest in it especially if you don't know the long term effects of our currency. If the demand for gold is so high now, it will be interesting to see what it is like after the recession.
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