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<p>[QUOTE="Vess1, post: 463109, member: 13650"]This thinking is exactly what drives deflation. It doesn't just work for platinum. It goes for all manufactured products as well. If people think prices need to come down or they expect that prices will be going down, the majority stops buying things and eventually it will happen. </p><p> Theoretically, there's more product available than money to buy the product, so prices have to come down. Just like GM can want 40k for a lot full of new Suburbans but if nobody has that kind of money and people can't get loans for them, the price has to go down and down, until the point is reached at which people can afford them. Of course, at the expense of the company. The theory applies to everything. It must be working with gas as well. The market could not sustain $4.00 a gallon long term. I wouldn't have believed it at the time, but it came true. What's funny is, there isnt even a mention of it on the news. Because it's good news I guess.[/QUOTE]</p><p><br /></p>
[QUOTE="Vess1, post: 463109, member: 13650"]This thinking is exactly what drives deflation. It doesn't just work for platinum. It goes for all manufactured products as well. If people think prices need to come down or they expect that prices will be going down, the majority stops buying things and eventually it will happen. Theoretically, there's more product available than money to buy the product, so prices have to come down. Just like GM can want 40k for a lot full of new Suburbans but if nobody has that kind of money and people can't get loans for them, the price has to go down and down, until the point is reached at which people can afford them. Of course, at the expense of the company. The theory applies to everything. It must be working with gas as well. The market could not sustain $4.00 a gallon long term. I wouldn't have believed it at the time, but it came true. What's funny is, there isnt even a mention of it on the news. Because it's good news I guess.[/QUOTE]
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