When a thing
is in short supply,
competition for the
available supply
pushes up the price.
If the thing becomes
an investment asset
then supply is further reduced
and the price gets
pushed up
even higher.
During the recent fuel shortage,
a government minister stated that
"buying up fuel
and selling it at inflated prices
is un-Australian".
Fuel had become
an investment asset.
If there was a food shortage,
would the government
be able to prevent food
from becoming
an investment asset?
Housing has become
an investment asset.
See
"
Australia's Housing Famine"
for information about
a major strategy
that would solve the
housing shortage.