Why are prices so low?

J

-j-p-shmorgan

New Member
If silver is so rare, limited in supply, and physical demand is through the roof......
Why are prices able to remain under $20/oz?

Thanks Obama
 
What exactly is your definition of 'rare' and 'limited supply'?
 
I've got some super rare silver that I can sell you for a very a high price. PM me if you're interested.
 
2001 silver was around US$4
2011 it reached US$49

So currently in 2015 - US$17 is a x4 increase in 14 years which is still not bad. IMO silver could be a now consolidation area hovering around the long term up-trend line.
 
The only silver that is truly rare is the rare silver items such as rare coins, antiques etc and the rarity has nothing to do with the metal but all to do with the actual item.
As for demand, that varies and at the present it would seem demand is low hence the low price.
It's similar with other commodities, copper, iron and so on for somewhat similar reasons.
Then there's the manipulation of course.
Make of that what you will. it's all guess work really and your guess is as good as mine or the next persons'
 
YEAR SILVER GOLD GSR
1970 1.635 35.94 21.98
1971 1.394 40.80 29.27
1972 1.976 58.16 29.43
1973 3.137 97.32 31.02
1974 4.391 159.26 36.27 <- peak silver
1975 4.085 161.02 39.42 <- peak gold
1976 4.347 124.84 28.72 <- bottom silver AND bottom gold
1977 4.706 147.71 31.39
1978 5.930 193.22 32.58
1979 21.793 306.68 14.07 <- peak silver
1980 16.393 612.56 37.37 <- peak gold
1981 8.432 460.03 54.56
1982 10.586 375.67 35.49 <- peak silver
1983 9.121 424.35 46.52 <- peak gold
1984 6.694 360.48 53.85
1985 5.888 317.26 53.88
1986 5.364 367.66 68.54
1987 6.790 446.46 65.75 <- peak silver AND peak gold
1988 6.108 436.94 71.54
1989 5.543 381.44 68.81
1990 4.068 383.51 94.27
1991 3.909 362.11 92.63
1992 3.710 343.82 92.67 <- bottom silver AND bottom gold
1993 4.968 359.77 72.42
1994 4.769 384.00 80.52
1995 5.148 384.17 74.63 <- peak silver
1996 4.730 387.77 81.98 <- peak gold
1997 5.945 330.98 55.67
1998 5.549 294.24 53.03
1999 5.218 278.88 53.45
2000 4.9506 279.11 56.38
2001 4.3702 271.04 62.02 <- bottom silver AND bottom gold
2002 4.5995 309.73 67.34
2003 4.8758 363.38 74.53
2004 6.6711 409.72 61.42
2005 7.3164 444.74 60.79
2006 11.5452 603.46 52.27
2007 13.3836 695.39 51.96
2008 14.9891 871.96 58.17
2009 14.6733 972.35 66.27
2010 20.1928 1224.53 60.64
2011 35.1192 1571.52 44.75 <- peak silver
2012 31.1497 1668.98 53.58 <- peak gold
2013 23.7928 1411.23 59.31
2014 20.3715 1294.64 63.55
2015 16.6489 1211.78 72.78 P

<j-p-shmorgan> Why are prices so low?
One could state that what you name 'low', is a normalisation on the decades term.
About 'low', my last (early november 2014) purchases common bullion ounce price was 15.10 euro. The same bullion coin now costs 17.95 euro, due to the euro that is now 1.1 instead of 1.4.
So prices so low, if you're on the dollar side then that's 1 reason.
But on the long timeline, even on the dollar side the silver price is not "so" low.
 
samarkand said:
2001 silver was around US$4
2011 it reached US$49

So currently in 2015 - US$17 is a x4 increase in 14 years which is still not bad. IMO silver could be a now consolidation area hovering around the long term up-trend line.
Click to expand...
In 2001 silvers price was moved in the range US$4.065-4.820 and the average $4.372. A fluctuation of 17.3% of the average.
In 2011 silvers price was moved in the range US$28.4-48.7 and the average $35.1192. A fluctuation of 57.8% of the average.
That US$49 was a real nothing on the timeline, way above the average, and not worth using in any comparison.
Abit like 1980's $50, which was even less than aboves nothing haha, the average was just $16.393 and the highest average of those decades was 1979 with $21.793 but a lower peak. Yet, alot out there seem to like using that 1980 $50 as a reference. It's worthless as such.
 
Things are like they are, alot including me were misleaded by a quantitative so-called "easing", that actually was restricting instead. So, the circulating money quantity didn't increase that suggested degree, some prices followed (due to that misleading), the rest didn't, translating to profit, then some grabs of it and we arrived at today, with still lots left to sell for profit, waiting again for a next wave suckers willing to pay it.
I ceased to be willing, and I use the amount contracts on the futures market as an indicator to recognize a bloated price as such.
 
-j-p-shmorgan said:
If silver is so rare, limited in supply, and physical demand is through the roof......
Why are prices able to remain under $20/oz?

Thanks Obama
Click to expand...

Compared to US$ silver is astonishingly rare. The only difference is right now there is far more demand for US$. That will change and when it does it will be earth shattering. Note I say when not if. So patience ....
 
House said:
What exactly is your definition of 'rare' and 'limited supply'?
Click to expand...
Maybe he's been reading too many stories on SilverDoctors and KWN. That would give someone a distorted view.
 
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