Tuesday, October 14, 2008

Demand, Supply and Hedge Funds! BASIC (?) drivers of prices

Ever wonder why car prices never go up as fast as Gold, Real Estate, Food stuff, Oil or Shares, despite public penchant being at the same level. Even if a particular car model (say Swift Dezire diesel, GM U-VA) etc at the time of launch drew huge response, prices were almost the same while the other stuff mentioned above goes up or down in a jiffy at the mention of fluttering of a butterfly in their godowns.

Does it make you sniff a racquet? No, it is called free market movements coupled with allowing casino players to bet on them officially.

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