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Speculative Demand

   Also found in: Wikipedia 0.01 sec.
Speculative demand (for money)
The need for cash to take advantage of investment opportunities that may arise.

Speculative Demand for Money
In Keynesian economics, a need for money for investment purposes. That is, speculative demand for money is the desire to have money for transactions other than those necessary for living. Speculative demand includes risk capital for securities. According to John Maynard Keynes, speculative demand is one of the three desires governing demand for money, the others being precautionary demand and transactions demand.


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This means that miners are a more leveraged way to play gold than the metal itself, particularly as surging speculative demand can increase mining companies’ P/E ratios.
This week has seen a more cautious tone, with some retrenchment in the global deflation trade as more realistic expectations set in, which hampered speculative demand for EUR-USD and the crosses.
Although rising commodity prices appear to be a vote of support for the extreme measures deployed by global policy makers to stave off economic weakness, ironically, fears that those same measures are stoking inflationary pressures are also contributing to higher speculative demand for crude oil, which is often viewed as an inflation hedge.
 
 
 
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