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<p>[QUOTE=&quot;NorthKorea, post: 1304553, member: 29643&quot;]For starters, the trend of nano-silver is unlikely to support any sort of demand matrix, since the FDA continues to state that there are no marked benefits to colloidal silver. By extension, that would imply that uses as an anti-bacterial agent may be found to be overstated when all is said and done. Even so, given the design of nano-silver, the vast majority of silver used in nano-design is oxidized... so they&#039;re using &quot;toning&quot; rather than the silver itself.</p><p><br /></p><p>Yes, silver demand will probably increase with the growing middle class in China, VietNam and other developing nations, but this won&#039;t be nearly enough to off-set the demand implied by investment in silver.</p><p><br /></p><p>Silver price support from 2006-today has come largely from producer de-hedging and investors. For example, nearly 2/3 of silver demand in 2010 was derived from these two sources. Compare this to 2001, when these two sources accounted for less than 40% of silver demand.</p><p><br /></p><p>The current demand for silver is very much &quot;speculation&quot; (which is exemplified by the collapse seen any time margin requirements are increased), and without much fundamental basis. Parabolic trend normalization shows silver around $29-$32/Toz for Dec 2012, and $40 for Dec 2014. This would be reasonable for actual demand outside of a speculative environment, which is one reason why there are such violent collapses in the price of the metal whenever margin requirements are bumped. </p><p><br /></p><p>Source: <a href="http://www.silverinstitute.org/supply_demand.php" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.silverinstitute.org/supply_demand.php" rel="nofollow">http://www.silverinstitute.org/supply_demand.php</a></p><p><a href="http://www.silverinstitute.org/supply_demand.php" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.silverinstitute.org/supply_demand.php" rel="nofollow"><br /></a></p><p><a href="http://www.silverinstitute.org/supply_demand.php" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.silverinstitute.org/supply_demand.php" rel="nofollow"></a>Like most of the members on this board, I&#039;m long silver. Unlike many, I&#039;m a seller of gold into strength and a buyer of rhodium. I&#039;m still net long on platinum, but given the downtrend, I&#039;m limiting my purchasing to technical reversals. This is probably costing me about $25 per ounce on the upside, but has saved me around $170 per ounce on the downside, so far.</p><p><br /></p><p>Anyway, my point is that I&#039;m long silver, not because of the demand generated from SLV and the futures market, but rather because I believe gold is over-priced currently (and for the foreseeable future). I&#039;m not actively acquiring physical or paper silver at this point, and I kind of hope silver reaches $40+ again, since that makes transitioning from physical bullion to coinage cheaper. Of course, the opposite price trend (silver below $20) would create the same scenario, but I mainly collect Morgans, Liberty nickels and Seated half-dimes/dimes/quarters/halves, when it comes to US coinage. I don&#039;t collect seated dollars, as they&#039;re generally out of my price point. <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie8" alt=":D" unselectable="on" unselectable="on" /></p><p><br /></p><p>Anyway, I&#039;m long silver, but don&#039;t expect demand to increase until spring 2012, at the earliest. If prices trend back below $30 by year-end, I&#039;ll buy into weakness after the new year. Until then, I&#039;m trying my darnedest to be short-Euro, net-long Asia (ex-Japan).[/QUOTE]</p><p><br /></p>

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