To Buy Gold Or To Buy Sugar - Market Trends Explained In A Flash
Michalis 'BIG Mike' Kotzakolios


Defined Tag: Buy Gold.

If you're given the choice, whether to buy a pound of sugar or a pound of gold, the answer will be clear. Unless you're stuck in an island and you've been craving for some sweet delicacies you can cook up with a local flora and fauna, you'd most certainly choose gold. After all, you can buy a pound of sugar for under a dollar or two. But a pound of gold? Alas! To buy gold of refined properties at such a weight will most certainly cost more, but you can sell the same gold for an even larger amount later on.

The above analogy is a microcosm of modern day trading. Allow me to explain...

Sugar is abundant in the world. We can easily harvest sugar from sugarcanes and other novel and alternative sources of glucose. But gold is not as prevalent. People can try to mine gold for years and still come up short.

Hence, because of its scarcity, gold is more expensive. Whenever you'd want to buy gold, you'd have to offer a large amount.

But the amount of gold is not pegged. It fluctuates in value. At times, the value of gold is high, but there are certain days when its value if lower than average. The reason? It's because the scarcity of gold likewise fluctuates. There are perennial efforts to mine gold, and there are times when a lot of gold is harvested. Also, because the trade of gold has been going on for many years now, some owners hold on to their share, and offer the same to the market only when they want to trade. Hence, the availability of gold increases and decreases.

This is the basic law of supply and demand at work. The lower the supply, the higher the demand, the higher the price. The larger the supply, the lower the demand, the lower the price. This explains gold's steady market value. And this explains sugar's lower price.

People who have decided to buy gold and sell the same for a living have learned how to determine market trends. They buy gold when the value is low, and sell when the value increases. The increase, of course, is their profit.

Gold is a great commodity to trade since it does not suffer from substantial decreases in value. On the contrary, gold increases at a stable rate through the passage of time, and this has led to many investors concentrating on this mineral for some amazing long term profit.

BIG Mike is a well known author, developer and Adsense expert as well as the owner of Niche Maniacs - a unique Adsense Marketing System designed to build long-term passive income streams from Adsense, Amazon, YPN, Chitika and other PPC services.