Sometimes the most basic of questions is the best question. For example, why do markets exist? Most everyone has heard about “supply and demand.” To be blunt, one should view the relationship between supply and demand as “market cause and effect.” Effective appraisers do not simply extract a value from a targeted market but analyze markets. A market analyzed by an appraiser is a market understood. THOU SHALL COVET… Demand exists if there is a desire for goods or services. Consumers’ decisions about acquiring products are sometimes in "consideration of possible future events." if prices are rising, buyers will purchase now to save money. Keep in mind that consumers have certain preferences such as likes or dislikes. A consumer may love emeralds and loathe opals. A consumer gets pleasure from consumption. The more pleasure the consumer gets from a product, the happier they are. if limited in budget and given two items they like, they will select and buy the one that will satisfy them the most. Speaking of limitations, what limits consumers’ choices? if one’s income is limited, their consumption will be limited. A single consumer may shop around but have little impact to influence prices and that is also a limitation. “Thus, when an appraiser analyzes market cause and effect,” states Bryan Aderhold, GIA GG, FGA, an appraiser and owner of Nash James enterprises, “they must look at overall market activity.” Often a source will no longer produce a gemstone. The prices for that gemstone will increase. Sharing his market savvy, he explains that, “everyone wants to buy while the prices are still affordable and take advantage of the future increase in profits when...
Sometimes the most basic of questions is the best question. For example, why do markets exist? Most everyone has heard about “supply and demand.” To be blunt, one should view the relationship between supply and demand as “market cause and effect.” Effective appraisers do not simply extract a value from a targeted market but analyze markets. A market analyzed by an appraiser is a market understood. THOU SHALL COVET… Demand exists if there is a desire for goods or services. Consumers’ decisions about acquiring products are sometimes in "consideration of possible future events." if prices are rising, buyers will purchase now to save money. Keep in mind that consumers have certain preferences such as likes or dislikes. A consumer may love emeralds and loathe opals. A consumer gets pleasure from consumption. The more pleasure the consumer gets from a product, the happier they are. if limited in budget and given two items they like, they will select and buy the one that will satisfy them the most. Speaking of limitations, what limits consumers’ choices? if one’s income is limited, their consumption will be limited. A single consumer may shop around but have little impact to influence prices and that is also a limitation. “Thus, when an appraiser analyzes market cause and effect,” states Bryan Aderhold, GIA GG, FGA, an appraiser and owner of Nash James enterprises, “they must look at overall market activity.” Often a source will no longer produce a gemstone. The prices for that gemstone will increase. Sharing his market savvy, he explains that, “everyone wants to buy while the prices are still affordable and take advantage of the future increase in profits when...

Demand and Someone Will Supply

Posted on July 1, 2020 by Bill Hoefer, GIA GG, FGA

Sometimes the most basic of questions is the best question. For example, why do markets exist? Most everyone has heard about “supply and demand.” To be blunt, one should view the relationship between supply and demand as “market cause and effect.” Effective appraisers do not simply extract a value from a targeted market but analyze markets. A market analyzed by an appraiser is a market understood. THOU SHALL COVET… Demand exists if there is a desire for goods or services. Consumers’ decisions about acquiring products are sometimes in "consideration of possible future events." if prices are rising, buyers will purchase now to save money. Keep in mind that consumers have certain preferences such as likes or dislikes. A consumer may love emeralds and loathe opals. A consumer gets pleasure from consumption. The more pleasure the consumer gets from a product, the happier they are. if limited in budget and given two items they like, they will select and buy the one that will satisfy them the most. Speaking of limitations, what limits consumers’ choices? if one’s income is limited, their consumption will be limited. A single consumer may shop around but have little impact to influence prices and that is also a limitation. “Thus, when an appraiser analyzes market cause and effect,” states Bryan Aderhold, GIA GG, FGA, an appraiser and owner of Nash James enterprises, “they must look at overall market activity.” Often a source will no longer produce a gemstone. The prices for that gemstone will increase. Sharing his market savvy, he explains that, “everyone wants to buy while the prices are still affordable and take advantage of the future increase in profits when...

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