Why Physical Silver Demand is Heading Higher

tneig

(an article off of the Coinflation site references today:
Article Link

quote:
"The silver price is depressed compared with its historical relationship to gold, one ounce being worth about 55 of silver, against the historical rate of 15 or 16. The reason, perhaps, has to do with silver’s demonetization and its role as an industrial metal. However, with global supply from mines and recycling running at about one billion ounces and demand at only a hundred million less, it does not take much investment demand to create a severe shortage.
For now, pricing is managed for industrial use, and industry has a vested interest in keeping the price low.
...."

I learned a lot from this article, if not mostly from this excerpt, but its juxtaposing focus is still written for nothing more than shock value and filler, as in the end, it says nothing. I grow tired of filtering through hoards of articles of opinion and self flatuation, which make me feel more like I'm trying to determine fact within a political campaign, rather then trying to figure out why the price of silver is what it is. I did not initially realize how complex this is, but fortunately or unfortunately now hooked...

OPA

Not sure how accurate those figures are. No more than 6 month ago the silver industry indicated an excess of 12,000 tons over demand for 2011.

cohodk

The silver price is depressed compared with its historical relationship to gold, one ounce being worth about 55 of silver, against the historical rate of 15 or 16

15 or 16?

Looks like for the better part of half a persons lifetime the ratio has been closer to 55. Love the propaganda though.

jmski52

Seems to me that I've been reading recently that silver supplies are pretty good. Then again, you never really know.

perkdog

<< <i>Not sure how accurate those figures are. No more than 6 month ago the silver industry indicated an excess of 12,000 tons over demand for 2011. >>



Wow, that tells me there wont be any shortage anytime soon.

DNADave

self flatuation...

too much of anything is bad for you.

Baley

Sometimes silver costs 6 or 10 dollars an ounce to mine and refine, and sometimes it's just a practically free byproduct of copper, zinc, tin, lead, or gold production.

calleocho

Demand its about the only thing that will make silver go higher right now.

Baley...i heard sometimes you can get extract oil for as little as 25 bucks a barrel

BBN

<< <i>Demand its about the only thing that will make silver go higher right now.
>>



Is it safe to say that it's on sale right now and a great long period buying opportunity upon us right now? My local dealer is currently selling at 20x face. I'm going to buy as much as possible at his rate.

OPA

<< <i>

<< <i>Demand its about the only thing that will make silver go higher right now.
>>



Is it safe to say that it's on sale right now and a great long period buying opportunity upon us right now? My local dealer is currently selling at 20x face. I'm going to buy as much as possible at his rate. >>



Silver demand is still declining...your deal may sound good now. Demand is still falling in numismatic and industrial production. Speculators are still avoiding it. Never chase a downward trending market, wait for the turn around.

BBN

<< <i>

<< <i>

<< <i>Demand its about the only thing that will make silver go higher right now.
>>



Is it safe to say that it's on sale right now and a great long period buying opportunity upon us right now? My local dealer is currently selling at 20x face. I'm going to buy as much as possible at his rate. >>



Silver demand is still declining...your deal may sound good now. Demand is still falling in numismatic and industrial production. Speculators are still avoiding it. Never chase a downward trending market, wait for the turn around. >>



Think I should be holding cash now and waiting for it to drop more?