Gold price and Online business?

Nowadays in India there is a considerable decrease in Gold rate and the merchants are very depressed that the price reduction is only due to Implication of Online business. My question is what is the relation between Gold Price and Online business?? Thanks buddy.. But I think I got a answer frm different source. Online Gold business tends to book gold for one date and make the merchant to deliver the gold to customers on the forthcoming dates.. The advantage s 4 Online merchants and the potential buyer of this gold always go for easy online purchase which increases demand for gold faster-and-faster and the gold prices go up due to lack of supply. Thanks 4 ur answer.

Public Comments

1. I doubt that online businesses are the major cause of gold prices going down. In the last few days, many commodity prices have slumped. But online businesses do increase competition in the gold market (as in other markets) by making worldwide prices instantly available to potential buyers. More competition equalizes prices around the world and makes local monopolies or near-monopolies harder to maintain.