Speculative Demand

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  • Created by: izzy
  • Created on: 09-06-13 21:04

Farm products are not the only goods whose prices fluctuate wildly from year to year. The same is true for many primary products, especially metals such as copper and nickel. Part of the reason for this stems from the fact that it takes years to open new mines, with the result that sudden increases in demand cannot easily be met from supply.

Another reason is specualtion. Many of the people and organisations that buy and sell commodities

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