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<p>[QUOTE=&quot;yakpoo, post: 1286512, member: 18157&quot;]Prices, of course, are a function of Supply and Demand. I would go a bit further and say that Demand is a&nbsp; function of <b>Desire </b>and <b>Resources</b>. Back in May, the CME Group raised&nbsp; margin rates for a number of commodities (silver being one of them).&nbsp; This reduced Demand by increasing the <b>Resources </b>needed to make the&nbsp; investment. As prices began to drop, some speculators likely lost the <b>Desire&nbsp; </b>to own the commodity, also reducing Demand.&nbsp; <b><a href="http://www.theledger.com/article/20110509/NEWS/110509321?tc=ar" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.theledger.com/article/20110509/NEWS/110509321?tc=ar" rel="nofollow">Here&#039;s an interesting&nbsp; article about the change in silver margin&nbsp; requirements</a></b>.</p><p><br /></p><p>&nbsp;The new&nbsp; Supply/Demand equilibrium is now in the $30-$32 range. As people get&nbsp; more comfortable at these levels, you may see prices begin to rise&nbsp; again. That&#039;s what I think of when Cloud talks about &quot;building a base&quot;. New mining&nbsp; operations coming on-line may have a depressing affect on silver prices,&nbsp; but the exchanges may then decide to lower margin rates...you never&nbsp; know. Keep in mind one thing...the futures markets weren&#039;t designed as a&nbsp; &quot;get rich quick&quot; scheme for speculators; they were created as&nbsp; &quot;insurance&quot; for the commodity producer. When speculation becomes too&nbsp; great, the exchanges will take steps to &quot;drain the swamp&quot; and restore&nbsp; order...<b>you can bet on&nbsp; it!</b>[/QUOTE]</p><p><br /></p>

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