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Does somebody have a reasonable explanation for this?
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<p>[QUOTE="InfleXion, post: 1178928, member: 29012"]Supply and demand seems to be working fine to me. The silver margins spiked all week last week which drove everyone out of the market who didn't have enough collateral to cover the new margins. So supply increased and the price dropped. Today it was oil margin hikes which took all commodities down with it, since energy prices impact most everything. If margin hikes are the only thing bringing the price down, and I believe that they are currently, there's no reason to think the price won't continue to rise in their absence. The Fed has already stated they don't plan on raising interest rates this year, so I'm not concerned about that. If there was a shortage at $49, it stands to reason there will be a shortage at cheaper prices. If major dealers are getting their supplies from the mint then the silver that hit the market last week isn't going to end up in their inventories anyway. My local dealers are out of ASE's except for proofs and graded ones.[/QUOTE]</p><p><br /></p>
[QUOTE="InfleXion, post: 1178928, member: 29012"]Supply and demand seems to be working fine to me. The silver margins spiked all week last week which drove everyone out of the market who didn't have enough collateral to cover the new margins. So supply increased and the price dropped. Today it was oil margin hikes which took all commodities down with it, since energy prices impact most everything. If margin hikes are the only thing bringing the price down, and I believe that they are currently, there's no reason to think the price won't continue to rise in their absence. The Fed has already stated they don't plan on raising interest rates this year, so I'm not concerned about that. If there was a shortage at $49, it stands to reason there will be a shortage at cheaper prices. If major dealers are getting their supplies from the mint then the silver that hit the market last week isn't going to end up in their inventories anyway. My local dealers are out of ASE's except for proofs and graded ones.[/QUOTE]
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Does somebody have a reasonable explanation for this?
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