Demand and supply are not like two independent parameters. Suppose you are a supplier. Example a recycler. You have a certain production, that gives you profit at todays price. Suppose you expect demand and thus price to increase, thus more customers want to buy your silver. What you gonna do: invest, so that you can produce more and sell more at the higher price. What just happened? The demand affected the supply. Take for ex the period ahead of 2007. The SI data shows that mine and recyclers output was less than demand. Yet, all demand was met (rather normal since nobody is gonna produce silver if he doesnt find the customers for it). How did this come? Because there was an additional supply from people that previously 'invested' / stacked silver, people that sold. Since 2007, the opposite became true. Miners and recyclers produced more, and the surplus production was 'consumed' by investment/stackers demand. See how miners/recyclers foresaw the higher silver demand to come?
I think I heard a noise, aah no, it was just The Marionette again. @Pirocco, are you suggesting that an oversupply or and undersupply is not possible? Hello Zero, Rawdog is not basing his ideas on The Silver Institute data, SX and I were discussing it. The price of silver has generally remained fairly constant say, for the last 40 years (in fact much longer). There were short sharp spikes in the early 80's and another in the mid 2000's, and of course we are all aware of the huge increase in price leading up to May 2011, and if you had bought low and sold high then yes, that was not a bad thing. Good things or bad things have nothing to do with my arguments, "fantasy" is what i am opposed to. One of those fantasies, or I should more accurately term as a "wish", is your statement: If silver increases in value, then obviously your statement is true and your wish will be fulfilled. However if silver declines in value, then your wish does not become true. Some in this forum base their entire exposure to silver on the assumption that history repeats, history has proven silver to be a store of value and a form of money, what once was shall once more come to pass. I'm tired of arguing against the fallacy of that belief so I will let you skim back through this thread and also point you to http://forums.silverstackers.com/topic-34055-gsr-the-fallacy-of-161.html. As you skim through the pages and pages of content, notice that I am not alone in my beliefs, there are a few (very few) other members who agree with some of my points, the vast majority do not though, and that is to be expected. The vast majority of members are SilverMainstreamers. There are those who correctly point out that you have to examine the real rather than the nominal value of silver, and that it is pointless valuing silver according to fiat currencies. While aspects of this idea are true, this is lovely theory that does not protect the investor from the cyclical nature of our financial system, as evidenced of late, silver has been a poor store of value over the past 2 years. They will counter argue with comments such as, "you have to have patience", "I'm in it for the long haul", "the system is manipulated!!!" etc etc, well how long is the long haul? Well let's just hope it's before we're all dead. And if it is indeed manipulated, then we're rooted. The world is full of nutjobs and those that seek to promote their needs and wants ahead of others with lies and deception. The silver community has a higher proportion of UberNutters than your average community, and there is no reason on Earth why it would be lacking in those peddling lies and deceptions as well. Welcome to SS, proceed with your journey into PM's with your eyes wide open and your cynical armour polished. PS It also helps if you have thick skin. @SX, you are a dick :lol:
Silver was .90 in the 60's Silver now is over $30.00 which equals over 30X the original cost. is that not over %3000? Damn those math salts, Rumplemintz got the better of me. I sit corrected.
An oversupply means that demand doesnt suffice AND/OR the price is below the one for the producers to be profitable. An undersupply means that demand is can't be met AND/OR the producers aren't able to produce the amount, for various possible reasons. The price mechanism balances demand and supply towards an equilibrium where every participant can make a buck. So why focussing on over and/or undersupply? It's not the supply, whatever it is, that is the sole determinating element. The whole is the determinator.
Thank you again Pirocco. Supply (or a shortage of) is one argument used by PermaBulls to justify their theory of silver to da moon.
interesting interview with Jim Rogers.... http://www.silverdoctors.com/jim-rogers-silver-going-much-higher-but-not-manipulated/
Time for some trollin. :lol: I imagine when that Youtube video is downloaded and linked to here, it'll be met with a howl of: Grey Ghost: Eruaran: Ronnie666.6repeating: Willrocks: And no argument would be complete without the final word (and then a thrown bat) from The Marionette:
Ha ha, I was on a phone yip when I read your post, I thought you were posting a link to the Rawdog video, I didn't notice you quoting it, I thought, "shit that yip's a dipstick, it was the same vid on page one". Sorry bro, my mistake. Love reno's reply to you though.
Are you a female shiney ? I only ask due to the caustic bitchy reply's. It's like a little bit of a full moon cycle creeping in while surrounded by five individual wasted egg's at the same time. It don't matter where you step, a land mine is going to go off and make you pay no matter what just for carrying a Y chromosome.
That wasn't caustic or bitchy. But this might be: http://forums.silverstackers.com/message-465316.html#p465316 :lol:
He could have gotten out at $32 today. And some months ago at $35. And some years ago at $43 and $50 Instead he waited for a lower price... to sell. Rather weird, for ex I wait for a lower price... to buy.
