It already drops 'nicely' since the $35.5 of september last year. Back then those that 'trade' (haha), when they sat ready to sell (haha), talked about higher prices. I'll target my next silver stack addition at spot $20-22. If it doesnt come, and my euro's make me feel uncomfortable, I'll buy something else than silver. But I have patience. There is no big general inflation, so no need to hurry alike those bogus 'traders' like to suggest. As a stacker I'd say let them drain off eachother, and pick out moments when least of them possess silver. Maybe I'll wait till the 'traders' on IShares Silver Trust dumped a 100 Moz, they did it in the Gold Trust, so it appears very plausible to me that at some point they will perform a dump too.
I Don't believe you..... What on earth makes you think that? What are the Chinese and Indians using to pay the Yanks for the physical? Binary code or pallets of printed paper?. Or you reckon approx 2.5 billion chinese and Indians must have it wrong .
The Chinese are buying gold bullion and gold jewelry using their RMB. The Chinese government(still holding all the US debt and treasury bill) is not buying any gold, only some of their citizens. By the way, I found this article today that the Chinese government is telling their citizens to stop buying physical gold. It's in Chinese, you can Google translate it. http://view.news.qq.com/zt2013/gold/index.htm
Americans buy physical gold&silver because certain people's lack of trust in the dollar and the monetary system. But the Chinese who buy physical gold bullion/jewelry simply because they like gold. They can give gold as presents to their family&friends&next generations.
That article read to me is just a debate with both sides of the win and loose view from some analysts.
Interesting topic that one, the chinese buying gold and silver. I'm not having a dig at all, because I do understand there is quite a lot of 'traditional' buying done generally throughout asia. But I don't agree particularly that they (private individuals) are buying it just because they like it. I think they are buying it because they have the same 'hedge against inflation' concerns, or distrust in their own currency as we all do. I think the demand is fuelled by concern of the continuously devaluing yuan, exposure to US debt, the increasing supply of residential housing with no 'apparent' demand for it, minimal incentive to leave cash in the bank (i.e. national banks, and little to no interest), and a general lack of access to other asset classes, like shares, etc. So if you are lucky enough to have 'disposable income', then unless you want to invest in a business or something else that will require your time and energy to maintain and grow there are not a lot of other 'set and forget' investment classes out there to choose from. Enter Gold and Silver.... And add to that the security that comes with being able to pick it up and carry it with you in the event of disaster, both man made or otherwise.
Many Chinese buy not for them but an intention of passing on to therir children/grand children, believing that gold is the best thing to preserve value.
I think it may drift lower maybe bottom at $21 but not much more. The turn arround will be August-September....unless we have some major crisis ???
$20 sounds about right, However any lower will unleash the very real gorilla of supply and demand as i'm sure we will see some high cost miners go up the wall and others won't bother extracting the expensive ores thus physical supply will be cut back and seeing that Industrial demand is constant the price can only go up. This might also be where a comex and real world disconnect may happen. With Inflation and high wages pushing up production cost we will never see sub $10 prices ever again imo
There maybe cheap mines in low cost countries such as Africa however they are too small to step in and replace the much bigger mines in higher cost countries, and if there are large reserves still untouched its going to take time to get them online and into the market. And you also you have to factor in political stability in low cost regions. Here is a lovely graph showing global supply by geographical country. Take out the high cost countries and you will have a pretty decent dent in supply. Also note that China is no longer the place to outsource for cheap labor as they are having a hard time trying to contain wage inflation.
Hmm, if prices go south, wouldn't it spur the low-cost miners to step up to the plate? Maybe also spur the higher-cost miners to carry out cost-cutting measures to be able to keep mining? Cos wouldn't it hurt them more if they were to stop operations entirely?
