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How will less mfg affect silver price in a major crash??
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<p>[QUOTE="medoraman, post: 966482, member: 26302"]Well put Cloud. The one worry about silver I would always have is the fact that a sizable amount of the large stockpiles have been converted into coins, ASE, rounds, etc. They haven't been consumed per se. I think that would be an overhang to the market, preventing sizable price appreciations. If the economy recovers, fewer people will buy silver for its safety. Production demand picks up, and its more than mine production, but there is always these other sources to be melted. Just saying it will mute any true demand increases. Also, these higher prices are driving increased mine operations. I know of a number of old mines reopened, and new mines dug due to high metal prices. Once in place mines don't shut down easily, so this increased supply could also suppress prices, especially for gold.[/QUOTE]</p><p><br /></p>
[QUOTE="medoraman, post: 966482, member: 26302"]Well put Cloud. The one worry about silver I would always have is the fact that a sizable amount of the large stockpiles have been converted into coins, ASE, rounds, etc. They haven't been consumed per se. I think that would be an overhang to the market, preventing sizable price appreciations. If the economy recovers, fewer people will buy silver for its safety. Production demand picks up, and its more than mine production, but there is always these other sources to be melted. Just saying it will mute any true demand increases. Also, these higher prices are driving increased mine operations. I know of a number of old mines reopened, and new mines dug due to high metal prices. Once in place mines don't shut down easily, so this increased supply could also suppress prices, especially for gold.[/QUOTE]
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