In: Economics
Briefly describe the prevailing gold market structure including (as applicable) relevant demand-side and supply-side elasticities, externalities, public goods features, price controls, taxes, tariffs, subsidies, trade quotas, and/or any other forces relevant to market efficiency and the Gold Mining Company’s competitiveness.
With your own words, do not copy-paste from the internet.
Gold Market:- The market which is dominated by large suppliers and gold holders including monetry is called gold market.
Gold Demand:- The modern gold market is a scenario of diversity and growth. Gold is now bought by different set of consumers and investors than at any previous time. Gold's different uses in jewelley, technology and by central banks and investors from different sectors give rise to the economy. Over the last decade demand for gold has moved to thr east. It happens because of wealth creation and income growth of thr growing economies.
Gold Supply:- Gold's supply is done by two methods. First gold mining and second is recycling of gold. Gold mining does not respond to price change quickly. Recycling of gold respond immidiately to the gold prices.
Gold Elasticities:- Generally gold is considered to be inelastic, as there is a limited amount of raw material available. But trade in gold in stock maket changes the prices of gold per day according to the situations.
Taxation of Gold:- Gold is a vide subject of range of taxes like export, import, purchase and sale. Gold is freely imported and exported by many countries. Investment gold has some taxes like Value Added Tax (VAT) and Goods and services Tax (GST)
Subsidies of Gold:- some of thr countries give subsidies to the gold to prevail gold market. It boost the market conditions.
Trade Quotas of gold market:- Trade in gold can be done in the stock market. Trading in gold on stock market exchange like SPDR Gold Trust (GLD).
Mine Production :- China was the largest gold producer in 2016, 14% of total annual production. Gold Mining is a global business. Mine production have grown significantly over the last decade.