ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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The Economy- Slow Strangulation

The Economy- Slow Strangulation

January 25, 1975 also, can one say that its days are numbered? The issues involved are rather complex. All along less than one-half of the newly mined gold has gone into industrial uses, the rest being absorbed by the hoards of monetary authorities and private citizens. Second, gold is a unique commodity in that its present stocks are enough to satisfy the industrial demand for the metal for the next more than 70-80 years. Since the quantity of newly-mined gold also continues to far exceed the current industrial demand, the overall supply position of gold is such as would bring about, other things being equal, a crash in its prices. Even if this led to a sham contraction of mining of new gold, the effective supply on the market would still be large since once the trend of continuous rise in prices is reversed, private hoards would come on the market. Rut such a crush in gold prices may not come about for several reasons.

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