I know that the value of gold is determined by the banks but what are their calculations?
Say hypothetically a meteorite with 10,000 tons of gold crashed in the middle of the US. We know the value of gold would go down, but by how much and how is that calculated?
In: Economics
The value isn’t *calculated* according to a formula, but *discovered* as people’s willingness to pay for it adapts to changing market conditions.
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