For example, in year 1998, the total world supply of gold is 125,000 metric tons and the annual ranges around 2,400 tons[6,8]. This means that in contrast to palm oil, corn, or soybeans, this year’s production has little influence on prices. Since gold behaves less like a commodity than long-lived assets such as stocks or bonds, gold prices are forwardlooking
and today’s price depends heavily on future supply and demand.