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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: goldsheet who wrote (70524)	5/28/2001 12:22:48 AM
From: russwinter	Read Replies (2) \| Respond to of 116753

The later, using Veneroso's term "income elasticity". "Price" is not correct. The scrap figures really perplex me. These are massive amounts of material. What is the source for coming up with these numbers. How can they possibly have any basis whatsoever for such an estimate in a worldwide market? I just don't get it?

To: goldsheet who wrote (70524)	5/28/2001 5:35:55 AM
From: E. Charters	Read Replies (1) \| Respond to of 116753

A good that is bought by rich people is a luxury item. Why is this assumption true? Because as more money becomes available to buy the item as one climbs the salary scale the more l ikely one is to buy that item. This is not a tautology. The goods bought with surplus wealth are not commodities but luxuries. So we graph income versus demand. Investments therefore are luxuries. Income level (disposable) ^ \| / \| / < normal * \| / good * \| / * \| ------ -- \| * < luxury good diff \|- / ---\|* \| "I" \| / * \| \| 0 --------------> qty demanded diff."Q" E =diff Q over Diff I, or change in quantity over change in income. If you take any difference on the income index (run) and divide it into ame distance horizontally on the vertical index of income (rise) you will see that for a percent change in the luxury good income has to go up only a bit.. slope > 45 degrees = normal good E <1 slope < 45degrees = luxury good. E>1 So it appears if gold's demand is very sensitive to a rise in income then it is a luxury. Stuff from Radio Shack slopes downward. E < 0. EC<:-}