Perhaps it has simply gone no bid as unobtainium ? Nothing in the market to quote... ?
But, it appears it is obtainable... at 26,500 or above... up to 28,400 per ounce... or 40K in 1/10th gram increments.
One ounce is hardly going to be useful in large scale industrial processes...
Still, should have bought more when I first pointed it out as undervalued...
My read on it... is that forcing it to go no bid... is likely part of the plan to suppress commodity prices by not buying them...
Might post more on that later today... re silver...
Silver shows that price suppression... makes LESS of the thing get produced over time... far more than it makes the thing cheaper over time. Banks have suppressed silver prices for a long time... in result of which we have a major silver shortage emerging now... as the generational overhang in surplus supply has evaporated. So, silver demand is spiking now... in both the monetary and industrial uses... with no chance that production can catch up with that growing demand... for a couple of years...
Price controls don't work, as intended... which is not to say they have no impact... But, the primary impact is to disrupt the market function, ensuring that price fails to work as it should... in making more available when more is required... Suppress the price... get less.
That worked in silver... until now... only because there was a generational surplus hanging over the market ? Emphasis on past tense.
If you try the same thing... when there's already a shortage ? Good luck with that. My own reaction would be to withhold sales at the suppressed price... and buy more myself... until the market balance was restored.
Then, it becomes a timing game. If users withhold purchases... the quantity in excess in the supply chain grows... until the supply chain fixes the surplus with reduced production... In a "just in time" world with everything working in synch... that's not a big deal. But, when things are not in synch... as you see proven to be true now... as production lags due to shortages of this or that from here or there... or transportation bottlenecks ? Then the JIT chain can't deliver efficiencies... but imposes the opposite... the future winners then being those with the foresight to accumulate and stockpile against the day when that occurs... still able to meet product demand in spite of reduced supply chain function... only up to the limit that the cost of the stockpile... and the price impact of an economic reversal... makes competitors benefit more from lower costs than you do ?
Screwing over your suppliers... is almost never a good idea... as they will find a way to share that cost.
So, the limiter will always be timing in relation to real demand for end products... If you refuse to buy... and thus can't sell as many products... others will take your market. If the market is already not there... how long will the downturn last... ?
That's the point of utility, I think, in noting the supply chain issues in commodities... as it is a transparent source of information on others predictions... or, on their mistakes in predictions...
We're being told the economy is roaring back...
I think instead it is demand that is roaring back... while the abilty to meet the demand is constrained... including being constrained by the dissolution over time of capacities...
A year and a half its been... since the virus began throttling the economy. The "V" recovery said to be ready to happen in August last year... was a "v"... followed by an "n"... and other letters... only, with different letters in different places... at different times... all changing constantly...
That means EVERY prediction... is an over estimate based on demand... that can't be met.
I think economic reality is about half of what is being forecast... so that by midsummer... we might be back to 75% of what the economy was in January 2020... only at that 75%... being constrained in "more" by how much things have fallen apart with neglect over the last year and a half... Getting back to 100%... will force inflation to record highs... for a couple of years... |
