Compile the impact of those...
Prices are down right now... and demand for investment products is down with the price declining, which should not be a surprise.
That it is the investment demand component that seems it is determinative in the market... ?
Stunning...
Investment demand for physical holdings is still only 3 to 5% of the market in physical silver now (off the top of my head... not quoting anyone on that)... and the total in investment demand now is a very small fraction of the historic fraction of investment demand that precious metals have been... There is HUGE upside potential in nothing but a return to historic norms in terms of how much gold and silver investment are recognized as useful in investing...
Note, in those links... the element in supply that is foremost recently in addressing that investment demand growth that is occurring now, is the share that is being created, ie, "hypothecated" through the trading of paper assets, like the silver ETFs...
So, first, the links in aggregate suggest that a declining price, which we do have right now in the current market, is actually now a REQUIREMENT to have real demand and real supply in anything close to real balance...
I'd also say a declining price appears it is a requirement just to not have the wheels come totally off in the trade in the paper trading portion of the market...
And, looking at HOW growth in investment demand has been being met... and at the recent difficulties in getting physical delivery when the price is rising, not falling ?
Note, in the links, that demand for delivery has been being met from real and significant shrinkage in the physical holdings of the metals in inventories with the traders ?
WHEN the market in trading paper silver fails... as becomes increasingly likely, as soon as prices turn around and head higher again... that big wedge you see in the "supply" shown above... will evaporate...
So, there should be some serious "blood in the streets" type events that occur... that will impose large discontinuities in prices... as you'd expect when a price suppression scheme suddenly fails... |
