Group items tagged

In this article it talks about the issues of supply of gold. Over time a lot of mines have been emptied and now there is a problem that the product will become scarce and gold prices will increase drastically. since there is not very much gold circling around different mines, there is less to be found. The problem is also that the economy is increasing, new mines are made and people have to be trained in mining and some specialized gold makers moved to these new gold mining cities. The average of needed gold in the world is estimated to increase 6% by 2016 which is a lot. A lot of the pure gold has been mined and the not so pure gold is not as profitable. 

Gold Demand falls (16. Aug 2012)

This article shows the fact that the demand for gold dropped. The global demand fell by 7 pc within three months up until the end of June. The World Gold Council stated that this is due to economies facing challenges as well as extremely high sales last year. The analysis also says that this is due to taxation on gold (mainly jewelry) in India. Luckily India is only one of many in the gold market, therefore It did not affect the demand too much. This relates to our discussion in class by addressing the fact of the demand curve moving to the left (the demand is decreasing). India's demand of gold may have dropped due to the new taxation has supply is limited.

In this article it is described, how the winners off a medal at the Olympic Games are celebrated like heroes. They also receive honorariums. A gold medal winner receives $ 25'000. Nevertheless the winners will have to pay taxes from this honorarium. For winning the gold medal they will have to pay a tax of $ 8'965. Now if we look back at 2008 when Michael Phelps won 8 gold medals, he would have to pay a high tax for winning his gold medals.