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<p>[QUOTE=&quot;Cloudsweeper99, post: 996504, member: 3011&quot;]I would just point out that 700 million ounces of silver is only about $14 billion.&nbsp; This is a tiny amount of money if a few pension funds, hedge funds, and institutional investors jump on the silver band wagon.&nbsp; Or even if some of the short sellers in the futures market are forced to liquidate their positions because they violate the new CFTC position limits.</p><p><br /></p><p>Regarding the ongoing debate about price and demand, I think it might be clear if you invert the problem.&nbsp; Silver prices have risen from $5 to $20 with demand increasing at the same time.&nbsp; So rather than supporting your theory that higher prices will lessen demand, I think this clearly demonstrates that silver has no close substitute that performs as well in industrial applications that require silver&#039;s performance [e.g., as the most reflective metal and best electrical conductor, or as a biocide] at prices close to present levels.&nbsp; Maybe copper is a substitute for some applications, but if it results in a reduction of performance for a 1% cost savings, the swap probably won&#039;t occur.&nbsp; Of course there is some theoretically high price at which industrial demand will weaken [but investment demand may soar], but apparently we are nowhere near that level yet.[/QUOTE]</p><p><br /></p>

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