Analyzing the news gold prices are being pushed by

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Analyzing the News Gold prices are being pushed by investor demand for gold increasing while at the same time jewelry demand for gold is falling. The net impact, coupled with net supply changes due to lower mining production and higher scrap production, has settled prices above the $900 mark. However, gold traders are having difficulty forecasting direction and the ultimate settling price.
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CHAPTER 4 Summary: Key Points in the Article Production problems, coupled with higher than expected consumer demand, are contributing to shortages of certain toys this holiday season. Many of the Chinese factories are experiencing labor shortages as high-tech job creation causes many Chinese to move off of the assembly line. Power outages have also contributed to lower productivity in the manufacturing regions of southern China. Unfortunately these problems came at the wrong time and have limited supplies of numbers of toys including Sony’s PlayStation 3. In addition to the supply problems, consumer demand was underestimated. Last year’s sales data were extrapolated to this year and many retailers placed very conservative orders. The limited supply and underestimated demand has created a real shortage of some toys. The result is a hot secondary market on Ebay for many toys such as the PlayStation 3 and Mattel’s TMX Elmo. The Elmo retails for $40 but is fetching $65 on Ebay. Analyzing the News Note that at price P there are more toys demanded than there are toys supplied. This shortage, particularly in game consoles, can be best visualized by the fact that some consumers are buying game consoles at store prices and selling them on Ebay for a large profit. The Ebay price would be equivalent to the price at equilibrium point A.
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Christopher Reinemann
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