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<p>[QUOTE="fatima, post: 1476835, member: 22143"]I completely agree with this statement. However proof that something exists does not require a direct observation of that something. Proof can be an observation of effects of that something. For example, they have discovered planets that can't be directly observed but they know they are there due to their effects which can be observed. </p><p><br /></p><p>This is why I asked the question that I asked. If the market was behaving as a true commodity pricing mechanism for silver, yet there doesn't seem to be any shortage of silver and demand is pretty static, then there should not be wild price swings as we have been seeing. If there is an explanation for this, beyond "markets just work this way", that isn't some sort of manipulation, then it should be easy to state. Else it sounds like the excuse the Church gave for imprisoning Galileo for life for stating that the planets orbited the sun and not the earth. </p><p><br /></p><p>Of course there is another explanation. That would be that silver is not really a simple commodity and in fact is more importantly a monetary security. It doesn't trade with the same rules that apply to real commodities like hog jowls on the CME and instead has properties closer to that of a currency. This would also fit in with the fact that it trades on it's own unique exchange, the Comex, which has it own unique rules, where just two other items trade one them being gold. Amazing this unique exchange for just 3 metals considering the many hundreds of other commodities out there. if one accepts this, then all the thinking about silver mines, industrial demand, corn on the CME, etc are really irrelevant.[/QUOTE]</p><p><br /></p>
[QUOTE="fatima, post: 1476835, member: 22143"]I completely agree with this statement. However proof that something exists does not require a direct observation of that something. Proof can be an observation of effects of that something. For example, they have discovered planets that can't be directly observed but they know they are there due to their effects which can be observed. This is why I asked the question that I asked. If the market was behaving as a true commodity pricing mechanism for silver, yet there doesn't seem to be any shortage of silver and demand is pretty static, then there should not be wild price swings as we have been seeing. If there is an explanation for this, beyond "markets just work this way", that isn't some sort of manipulation, then it should be easy to state. Else it sounds like the excuse the Church gave for imprisoning Galileo for life for stating that the planets orbited the sun and not the earth. Of course there is another explanation. That would be that silver is not really a simple commodity and in fact is more importantly a monetary security. It doesn't trade with the same rules that apply to real commodities like hog jowls on the CME and instead has properties closer to that of a currency. This would also fit in with the fact that it trades on it's own unique exchange, the Comex, which has it own unique rules, where just two other items trade one them being gold. Amazing this unique exchange for just 3 metals considering the many hundreds of other commodities out there. if one accepts this, then all the thinking about silver mines, industrial demand, corn on the CME, etc are really irrelevant.[/QUOTE]
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