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<p>[QUOTE=&quot;NorthKorea, post: 1569052, member: 29643&quot;]It&#039;s still a hypothesis. The fact that it&#039;s largely disputed as &quot;bunkum&quot; further reinforces its place as a sub-theory, or hypothesis.</p><p><br /></p><p>As for equating APMEX sales figures to the stock market, I think that actually reinforces the idea of market efficiency. One reason the markets are inefficient at pricing securities happens to be the same thing that caused a perception of efficiency: real-time trading (and the legal restrictions that accompany it). If people were allowed to transfer securities without Medallion Guarantees and transfer fees, the markets would more efficiently price demand for securities.</p><p><br /></p><p>Securities are sold at a limit price. This is basically what happens with physical bullion&nbsp; retailers. They are looking to sell at a price where they lose very little when commodities take a bath. This is why spreads widen at price extremes. When the price is topping, commodity retailers buy to fill demand and current inventory. When the price is bottoming, they still buy to fill demand and future inventory. However, even in this latter case, they won&#039;t significantly increase inventory in terms of liquidation.</p><p><br /></p><p>The retailers are ALWAYS sellers. If their inventories are shrinking, that usually indicates a price top, not a bottom.[/QUOTE]</p><p><br /></p>

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