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Earlier quoted context omitted.
Wait until you learn about OPEC and oil prices :-)
I mean, that’s a straight up cartel. There’s nothing surprising about that. But the OP is confused about their comment about commodities in general. They are largely based on supply and demand, but most companies need to predict supply and demand months and years in advance because converting raw material into a sale to the end user is a multi month to multi year process, so a natural result is that the prices are ba…
There’s also an element of speculation on speculation driving short term trends.
The more I read about prices of different commodities the more I realise the biggest movement in prices is not because of demand and supply but rather because of speculation and gambling. And how most of the news is manipulated. For example they are equating lithium price fall with stagnating car sales. Where as car sales might be stagnating but electric car sales are taking a larger portion of total car sales ie ele…
Speculation & gambaling is just second order supply & demand.
The more I read about prices of different commodities the more I realise the biggest movement in prices is not because of demand and supply but rather because of speculation and gambling. And how most of the news is manipulated. For example they are equating lithium price fall with stagnating car sales. Where as car sales might be stagnating but electric car sales are taking a larger portion of total car sales ie ele…
Speculation & gambaling is just second order supply & demand.
The more I read about prices of different commodities the more I realise the biggest movement in prices is not because of demand and supply but rather because of speculation and gambling. And how most of the news is manipulated. For example they are equating lithium price fall with stagnating car sales. Where as car sales might be stagnating but electric car sales are taking a larger portion of total car sales ie ele…
Speculation & gambaling is just second order supply & demand.
Earlier quoted context omitted.
Speculation & gambaling is just second order supply & demand.
No it's not. Finance bros like to tell themselves that, so that they can justify their place in morality.
You can also do "bad" things on first order by hoarding the items themselves.
Earlier quoted context omitted.
> 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).
With 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.
The more I read about prices of different commodities the more I realise the biggest movement in prices is not because of demand and supply but rather because of speculation and gambling. And how most of the news is manipulated. For example they are equating lithium price fall with stagnating car sales. Where as car sales might be stagnating but electric car sales are taking a larger portion of total car sales ie ele…
Speculation & gambaling is just second order supply & demand.