Supply & Demand

Have you ever wondered why prices go up and down so constantly? It is because of the rule of supply and demand. Supply and demand is really not that complicated. Have you seen or heard of those auctions for rare stamps? People can bid over thousands just for one stamp! The reason that the price is so high is because of supply and demand. Take a look at this chart.

Do you understand? So basically, when there is a low supply of an item and there is a lot of demand, the price will be high. However, when there is a lot of supply, but low demand, the price will be low. So, thinking as a good investor, you want to invest when there is low supply. If you know there is going to be a higher demand later on, buy the item and sell it later.

As time passes by, the item may increase in price or decrease based on the rule of supply and demand, so think and earn some money!

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