Do you know how to read the candle charts? Just curious.
Silver Price Watch
- Thread starter STKR
- Start date
Not yet dude. But very close
Everyone has their chance to buy
Silver saw an 8% rise in 24 hours. It's been lagging behind Gold for so long that a rapid move to $50US and beyond wouldn't be off the table. Do we have a correction this week or do we go parabolic?
One important thing to note is the deficits for previous years were 200 Moz's+ while the POS has fallen. Now, with the breakout through $30US bringing a new wave of excitement and interest, what will the deficits be when Bullion demand doubles? Physical investment demand could be the straw that breaks the camels back, leading to greater deficits, which lead to higher prices, which leads to higher demand.... And greater deficits. It's a viscous death spiral. Remember, the bull run of 2008-11 saw a 5x in physical Bullion demand!
The best thing about silver is the supply and demand fundamentals are still favourable without the need for physical investment demand. The market couldn't handle Australia's population buying 10 Oz's each... And what is that? $500 per person, or 240 Moz's? There does appear to be a 400 Moz cap on production capacity for mints around the world though. This production capacity will result in silver being unobtainable through dealers, and a new 'private sales market' will form with inflated premiums running rampant. For all those interested in GSR trades, Golden opportunities would exist in these times.
One important thing to note is the deficits for previous years were 200 Moz's+ while the POS has fallen. Now, with the breakout through $30US bringing a new wave of excitement and interest, what will the deficits be when Bullion demand doubles? Physical investment demand could be the straw that breaks the camels back, leading to greater deficits, which lead to higher prices, which leads to higher demand.... And greater deficits. It's a viscous death spiral. Remember, the bull run of 2008-11 saw a 5x in physical Bullion demand!
The best thing about silver is the supply and demand fundamentals are still favourable without the need for physical investment demand. The market couldn't handle Australia's population buying 10 Oz's each... And what is that? $500 per person, or 240 Moz's? There does appear to be a 400 Moz cap on production capacity for mints around the world though. This production capacity will result in silver being unobtainable through dealers, and a new 'private sales market' will form with inflated premiums running rampant. For all those interested in GSR trades, Golden opportunities would exist in these times.
Finally! I purchased some silver back in 2011 for $45.