Despite the consistent downtrend in the spot price for gold, there is potential that the price could U-turn back to the upside as more institutional demand in the technology industry is purchasing more gold. The reason for institutions buying more gold is two folded.
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While the gold price is lower than where most investors are expecting it to be, institutions are taking advantage of the low purchase cost to widen their profit margin. The other reason is that more companies are looking for printers that benefit their business and are turning to more efficient printers that have precious metals since they are effective conductors of electricity.
Like any business, when inventory prices are temporarily low, it is most logical to stock up on those items so that they can produce more inventory which can accelerate their target market, increase the volume moved, and increase their profit margin. The benefits are endless for technology companies that can purchase lower commodity prices.
Small Businesses Rely On Printres Daily
As for the demand side of things, 8 out of 10 small businesses rely on printers daily. Within those companies, over half of them are demanding printing companies to produce more efficient and reliable printers. There is no sign of stopping anytime soon for more printers, especially within the technology industry.
Since the element gold is in almost everything that conducts electricity, the floor is expected to remain high considering that more institutional demand is requiring gold in the products that they make. Another thing to consider is that since gold costs a lot of money and energy to dig out of the ground, it puts, even more, buying pressure on the metal.
From a technical analysis perspective, it makes sense as to why gold could continue to the downside but from a fundamental perspective, the demand will outweigh the supply of gold leading the price to go up.
Now, if the gold price goes up outrageously high, then it could be bad for the demand side of things, primarily for printer producers since they will be forced to raise their prices higher on their inventory. In the worst-case scenario, even if demand does slump in the event the gold price shoots up, the demand for quality and reliable printers remains essential for ordinary small businesses in the present and the future.
For savvy consumers, purchasing a new quality printer would be wise while the cost to produce is cheap and inventory is plentiful. Printer companies should look at the low gold price as an opportunity to save money for when gold eventually rallies back to the upside. Choosing the best small business printer for your organization is key.
Infographic Source: Lexmark.com
