When you purchase gold does it affect the market? Say I went and bought 100000 ounces of gold, would I see any change in the market from my purchase? Basically what I am asking is can the common folk change the way the market goes or is the manipulation that controls it? I am hoping this is a supply and demand thing and not just dumping fake paper onto the market.. otherwise the Elite will never lose.. I know im missing something just cant put my finger on it.
Whenever I buy a sizeable quantity of bullion, the price invariably drops the next day. Manipulation confirmed!
To answer the question - no Spot is determined from the futures market and the amount of metal futures contracts being traded are many multiples of actual physical trades Large physical buying might create a short term physical shortage but it would not have much impact on the price
Then why does gold jump up during Chinese (and other Asian-) holidays when people buy loads of gold as presents? The average persons can indeed affect the price - probably there's not direct connection, but there is an indirect one.
The question was unrelated to amount traded, but to amount existing. If someone buys a 100 ounce long position, or 100 ounces from a dealer, the effect, in the end, would be the same. "In the end", because ofcourse the purchase from a dealer needs to propagate through the supply chain to nodes that the price mechanism takes into account. Alot times, if not most of the times, since the futures markets existence reason is hedging, futures contracts are taken/givenup based on planned gold purchases/sales. Thus based on events happening in the market of the underlying, the real market, not the market of derivatives. For ex, if a gold stock owner agrees with a buyer to sell 400 tonnes over 3 months, then the agreed price may inflict losses to one party, by the time those 3 months passed, when the price has changed over that period. So the gold stock owner may take a proportional amount futures short positions, as to compensate for an eventual price drop, and the buyer a proportional amount futures long positions, as to compensate for an eventual price rise. A futures market, is not a isle with a dictator on it. It's very closely linked to the real, "physical" market. Because without, fluctuating prices would cause big financial havoc, due to inability to compensate for them, and financial plan. Basically, it was created to deal with temporary effects, such as speculators, nature events like good or bad harvests, etc.
Are they? Valentines day is easy to predict, so the big one-shot demand that day gets taken into account by the rose gardeners. Hurah for succesful predicting.
Well I think we're all missing the big question here. Where the TURTLE is my four pack of Jim Beams, packet of smokes and my roll of kookaburras......on valentines day? For being such an awesome husband, equal opportunity fellas. On a more serious note I don't think I've really seen any major sales/purchases/trades preceding big price moves, only after the fact
They can always charge more. They can alot. Just like customers can alot. Ex. buying something else (or) elsewhere. Did you actually see higher prices for roses on Valentines Day? I didn't. What I did see was that they expected higher demand, as indicated by a much bigger amount in the shelves.
People should celebrate Valentine's day on February 15th just to spite retailers and get wilted flowers for a fraction of the price.
"Did you actually see higher prices for roses on Valentines Day?" As someone who has lived in Holland as well as other places, I can tell you the prices of flowers on Valentine's Day definitely goes up - except in Holland where flowers are always reasonably priced. The flower market in Holland behaves differently than in the UK and US, at least.
Funny country related difference, that is. And customers just accept that? Buy a rose, $x sir. Next day, buy a rose, $2x sir. If that would happen here, people would start talking about it, and the seller would quickly get comments and some red surfaces on his face Maybe a difference in culture lol.
