Is Gold a Giffen Good?

October 12, 2012 By 5 Comments

Paul Mylchreest has released the October Thunder Road Report, titled Is Gold a Giffen Good?
For those unfamiliar with the term, a Giffen good is one which violates the normal laws of supply and demand, i.e. instead of falling, demand rises as the price increases.
This certainly appears to be the case with not only gold, but particularly with the investment silver market.  Mylchreest takes an excellent in-depth look at gold and it’s supply/demand fundamentals.  Is the HUI gold bug’s index signaling a bottom in the gold price?

TRR28


Check out these similar articles:

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  2. World Gold Council: China’s Investment Demand for Gold Likely to Top Record of 200 Tons in 2011
  3. Gold Demands Trend (Q1 2012) – Enter The Dragon
  4. Jim Sinclair: A Move in Gold Above $1764 Will LOCK IN 5 Figure Gold!
  5. We Ain’t Seen Nothing Yet: INVESTMENT DEMAND IS PUSHING THE PRICE OF SILVER HIGHER
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Comments

  1. Avatar of precmetals precmetals says:
    October 12, 2012 at 4:03 PM

    That was a very interesting read, thank you! I guess I’ll keep Jelly Doughnut antidote! :-)

  2. Avatar of El Bernanko El Bernanko says:
    October 12, 2012 at 4:47 PM

    “This certainly appears to be the case with not only gold, but particularly with the investment silver market.”

    Quick! hide this from all the FOFOAtards 

  3. Avatar of Schmederling Schmederling says:
    October 13, 2012 at 3:27 AM

    I suspect the picture being painted over the last several weeks and into the final leg of the election we will continue to see more of the same in all markets. The current environment is one of indecision and investors don’t like that – money will be taken off the table until the final out-come of the elections are defined or perhaps a week before once a firm lead is established.  Right now we are in a stalemate and the unknown drives fear – look for the money flow to return once this cross-roads has been addressed. Until then we can expect to see continued modest growth in the DXY and lower Oil or at least fluctuation prices as we have seen so far.  I also suspect that an coordinated effort has been communicated to Europe not to come to any firm agreements until after the elections. just my take on what is happening out there recently.

  4. Avatar of Sumkid Sumkid says:
    October 15, 2012 at 5:46 PM

    If gold is good, then silver is better because at least silver got more uses than gold and as for gold, it is mostly bought and stored. The above ground of silver supply is diminishing while the above ground of gold supply have been raised. Also, the US Geological Survey (USGS) have predicted that silver will become extinct in the year 2020.

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