Is gold a commodity?
This problem may have been bothering you for a long time: Is gold a commodity? More importantly, when we call gold a commodity, is it harmful to the gold industry? This sounds like a stupid question. At the Asian Mining Conference in Singapore last month, many participants compared gold to lead, zinc, copper and other commodities, including soybeans and other agricultural products. These speakers analyze their prices through annual supply and demand data. Clearly, the interaction between supply and demand determines the price of commodities. Supply is a major factor affecting the price of bulk commodities, but the newly mined gold does not affect gold prices too much. The true gold supply is the ground stock, which is gold that has been mined and processed, and gold that can be sold immediately. Historically, gold mining refers to ground stocks, and newly mined gold continues to grow by about 1.75% annually. Gold floor stocks and their relatively small size and annual growth continue to distinguish gold from other commodities. Other commodities will continue to be consumed and then disappear. But gold will not be consumed, it will not disappear, but it will continue to accumulate. All the gold mined in history still exists, and the gold floor inventory is about 170,000 tons. Gold also has other qualities that distinguish it from commodities. For example, gold has no grade distinction. The gold mined by the Romans before 2000 was still there, and it is no different from the gold mined today. Gold does not wear out over time, and gold does not get corroded, rusted or destroyed. Obviously, gold is different from other commodities and has its own particularity. When the gold futures expire, they can be delivered at a higher price. This structure is called a futures premium. Of course, some commodities also have a futures premium, but they have a spot premium and high storage costs. In contrast, the storage cost of gold is nothing compared to the value of gold. For example, the London Metal Exchange's annual copper storage costs are about 4%, while gold stored in gold banknotes can cost as little as 0.0012% per year, which is lower than some banks charge check accounts. Like other commodities, gold is a tangible asset, but a unique tangible asset. So if gold is not a commodity, what is it? Gold is money. Women Plus Size Printed Casual Dress Women Plus Size Printed Casual Dress,Short Sleeve Printed Dress,Women Summer Short Sleeve Dress,Women Fashion Elegant Dress GUANGZHOU CHEER INDUSTRY CO LTD , https://www.fashionwholesale2.com