by Pedant » Fri Jun 10, 2016 7:29 am
I don't think Zach understand how shorting works.
In order to short Gold, you have to borrow Gold, not money. Once you borrow Gold, you sell it, hope for the price to drop, then buy it back a lower price and give it back to the person you borrowed it from.
In any case, the owner of this goose would be long gold to start with, so would actually profit form an increase in the price of Gold.
So an Economist would actually recommend not publicising it and sell your Gold as the goose produces it, in order to maximise your profit.
I don't think Zach understand how shorting works.
In order to short Gold, you have to borrow Gold, not money. Once you borrow Gold, you sell it, hope for the price to drop, then buy it back a lower price and give it back to the person you borrowed it from.
In any case, the owner of this goose would be long gold to start with, so would actually profit form an increase in the price of Gold.
So an Economist would actually recommend not publicising it and sell your Gold as the goose produces it, in order to maximise your profit.