Should the demand for PMs be measured in dollars or ounces?

cohodk

Found the button again.

But anyway, this is a question I have often struggled with in trading stocks. What is more significant, buying 1 million ounces of silver at $50 or 5 million ounces at $10?

piecesofme

ummm, it depends on what the market is "suggesting" it's worth...then, a decision has to made...by you, the individual in the market.

KUCH

<< <i>ummm, it depends on what the market is "suggesting" it's worth...then, a decision has to made...by you, the individual in the market. >>



I agree.

One would need a computer with artificial intelligence to gather all the data producing a statistical answer.

Stand and Deliver

ricko

Either could be significant - the rationale behind the buy would reveal the importance. Cheers, RickO

s4ny

With the silver, the 5 million ounces is more significant, it is a greater amount.

With stocks it is the same dollar investment and can be a single stock certificate or
one line on a brokerage statement.

bronco2078

Demand should be measured in ounces . An ounce is a fixed quantity. Dollars are imaginary units.

derryb

It should be measured by weight. weight remains constant while dollar fluctuates. Note how supply is measured by weight and international demand is measured in tons.

Baley

Demand for "PMs" should be measured by the current spot price.

(This is entirely distinct from the incremental demand for specific pieces of metal, which is measured by the sales prices between willing buyers and sellers)

volume is measured in ounces (or tons), and the market value traded over any specific time period such as a day or a year is measured by [volume*price]

derryb

supply cannot be measured in apples while demand is measured in oranges.

An ounce of gold will always be an ounce of gold. A dollar's worth of gold changes by the minute. The unit of measure of anything should be a constant, unchanging unit of measure. Otherwise there is no constant reference point for earlier and subsequent measurements. If I have $1000 worth of gold today and $900 worth of gold next week do I have less gold?

Baley

<< <i> If I have $1000 worth of gold today and $900 worth of gold next week do I have less gold? >>



No, you have less money.

derryb

<< <i>

<< <i> If I have $1000 worth of gold today and $900 worth of gold next week do I have less gold? >>



No, you have less money. >>


Isn't this discussion about measuring gold, not money?

cohodk

Isn't this discussion about measuring gold, not money?

I don know, and thats my question. Is 1 million ounces at $10 the same as 100,000 ounces at $100?

derryb

<< <i>Isn't this discussion about measuring gold, not money?

I don know, and thats my question. Is 1 million ounces at $10 the same as 100,000 ounces at $100? >>


How does the question in the thread title relate to the question in the OP?

jmski52

Demand for PMs is measured in ounces or other weight measure.

The question isn't relevant for stocks. PMs aren't particularly analogous to stocks, since they represent totally different classes of assets and their valuations are done in different ways.

What is more significant? 1,000,000 oz @ $50 or 5,000,000 oz @ $10? Without any context, who knows? Significant in what way?

If "significance" only refers to the number of dollars, they are equal in "significance".

If Comex only has 1,000 oz in their warehouses then 5,000,000 oz is more significant.

You should frame your questions less open-endedly if you want meaningful responses.

cohodk

The question isn't relevant for stocks. PMs aren't particularly analogous to stocks, since they represent totally different classes of assets and their valuations are done in different ways.

Why? AAPL has X number of shares. Gold has X number of ounces? Whats the difference?

If there are finite ounces of PMs yet infinite dollars, how should we determine demand? In terms of ounces or dollars? Or are there both finite dollars and finite ounces?

As the price of PMs increase, does not the demand for ounces not decrease?

LochNESS

<< <i>Demand should be measured in ounces . An ounce is a fixed quantity. Dollars are imaginary units. >>

TwoSides2aCoin

I think the demand for PMs is measured by market sentiment and that's neither in dollars or ounces, but based on fear or confidence.