wrcmad said:
Pirocco said:
Quantitative Easing was a scam, the so-called "money printing" happened only for a very small fraction of the new dollars, the major part just stayed in the sterile world of central banks electronical "depositories". Why: because the central bank PAID its member banks to keep it there, and NOT spend it.
The goal of QE was to trick people into expecting general price risings. False expectations, that's all.
The silver price trend had and has nothing to do with industrial demand.
It's just savers, that ceased to buy it. ETF's didn't add in years. I didn't add in 1 year. Why looking around for external causes, like "paper", "Comex", etc? The reason sits in our mirrors. Me, and others, are the reason behind the price drop.
Haven't heard a load of shyte that big from you for a while!
QE was not a scam, or trickery... it was what it was.
It was never a secret that QE money was being used to shore up the balance sheets of financial institutions.
Just because the permabull delusional theories regarding hyperinflation didn't eventuate doesn't make it a scam.
The silver price trend has a lot to do with industrial demand, since industrial demand accounts for
over half of word-wide demand.
As much as it hurts some to hear, investors have bugger-all influence on the supply-demand dynamic.
http://www.silverinstitute.org/site/wp-content/uploads/2011/09/WSS2015Demand.jpg
Industrial demand is the main factor now affecting price. If, and this is a big if, silver ever does go way up again (let's say to $50 or higher again), it is going to require a heavy investment demand. If said heavy investment demand never materializes, silver will always be cheap relatively speaking. With most economies in the $h!tter right now, it is highly unlikely that industrial demand is going to rise in any meaningful way for quite a while. Even if it does, there is still much silver available each year (when investment demand is relatively low) to give industry all it needs. Even though they are coming out with new industrial silver uses all the time, it doesn't seem to eat up all that much actual silver when you look at the yearly supply/demand for all silver uses like in the chart from WRCMAD.
Investment demand (paper mostly) is what got silver to get to $50 in 2011, it was not because of heavy industrial demand nor physical investment demand. For reference, I consider longs on comex and such (and ETF's) to be investor demand, not just physical stackers and the like. There were no retail or wholesale shortages in that time period I am aware of leading up to 2011 (when silver was rising from 20 to 50).
To get heavy investment demand at this point it is going to take some unforeseen horrible world event(s) to take place that causes big money folks (central banks, pension funds, hedge funds, 1%ers, etc) and later on small money folks, to start buying paper and physical in large amounts due to falling confidence in the system. Right now it is hard to imagine that kind of demand ever existing given silver's lack of popularity by all but die hard silverbugs. But the idea of some horrible world "event" taking place does seem particularly likely to me, given enough time. It could be major bank failures, derivatives failures, war related financial problems, currency failures, etc. Whatever it would be, it would have to cause a massive lack in confidence in assets that are not considered "hard assets".
I consider the situation here in the US with the debt/entitlements/pensions and such, and the problems from many other countries with debt and pensions, etc, plus the many war situations going on right now that involve MAJOR players along with the smaller ones, sort of like a big gunpowder factory where the powder is not stored properly and is all over the place. Sooner or later a "match" or spark will go off and set things in motion. That could be next year or in 10 years. Impossible to say. Somehow (almost seems like magic) the sheep have been conditioned to accept the fact that gov debts don't matter and "money" can be created out of thin air and everything will be OK. That type of thinking and doing goes against "mother nature" (from an economic standpoint) so to speak and it will eventually be fixed by some event(s) causing defaults, lack of confidence, etc.
Just my opinion.
Jim
