“The greater the penalties laid on sellers in the black market, the higher the black market price.” – Kenneth Boulding I had a chance encounter with a crypto bro a few weeks ago. He was pitching his new whiz bang social media app and I just happened to be in the small audience. Well, he wasn’t formally pitching. In the venture capital world, every deal is oversubscribed except for the ones that are undersubscribed, and so he was giving a sneak peek at his next hot startup and pretending like he wasn’t in the market for money – the barrage of name-dropping and buzzwords that followed notwithstanding.
Really great article! You have a sharp eye, sir! Recently a lot of people also noticed that on some product the price went up, but on other the price stayed the same, but if you look closely the weight or the size of the product is reduced and sometimes both approaches are observed. Have you seem such thing too?
I can remember when you would get a kickback from watch dealers back in 2017/18 - to keep your franchise you have to sell a certain target, so shops would do deals and give a percentage of the commission back. Those days have clearly gone.
Thanks, what a great article. As we're all experiencing, this phenomenon is occurring in all aspects of the economy. Examples include farm chemicals (Roundup $9/gal last year, now $60/gal), fertilizer (double), firearms, food, steel, vehicles, anything that has real material value. Your example, using the dealer network 'list' for pricing is an excellent one. Many dealers have this very rare pricing power where they can proudly or secretly get more than list price for their products...
One item that isn't experiencing this are the precious metals. I've always heard they do best in deflationary environments and so that seems to be true. Thanks again.
Having a price without supply is something that Soviet Russia was quite familiar with, heh
Really great article! You have a sharp eye, sir! Recently a lot of people also noticed that on some product the price went up, but on other the price stayed the same, but if you look closely the weight or the size of the product is reduced and sometimes both approaches are observed. Have you seem such thing too?
I can remember when you would get a kickback from watch dealers back in 2017/18 - to keep your franchise you have to sell a certain target, so shops would do deals and give a percentage of the commission back. Those days have clearly gone.
Thanks, what a great article. As we're all experiencing, this phenomenon is occurring in all aspects of the economy. Examples include farm chemicals (Roundup $9/gal last year, now $60/gal), fertilizer (double), firearms, food, steel, vehicles, anything that has real material value. Your example, using the dealer network 'list' for pricing is an excellent one. Many dealers have this very rare pricing power where they can proudly or secretly get more than list price for their products...
One item that isn't experiencing this are the precious metals. I've always heard they do best in deflationary environments and so that seems to be true. Thanks again.
I was reading the article and waiting for the moment when it would say "I'm joking, this really is about Xbox and Playstation consoles and GPUs"