Investing in precious metals 101

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    The New Endangered Species: Liquidity & Reliable Income Streams

    Prepare for a shift in what 'value' means
    by charleshughsmith

    Tuesday, August 28, 2012, 3:05 PM

    0

    The causal relationship between scarcity, demand, and price is intuitive.  Whatever is scarce and in demand will rise in price to its cost basis; whatever is abundant and in low demand will decline in price.

    The corollary is somewhat less intuitive, but still solidly sensible: the cure for high prices is high prices, meaning that as the price of a commodity or service reaches a threshold of affordability/pain, suppliers and consumers will seek out alternatives or modify their behaviors to lower consumption.

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