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<p>[QUOTE="Cloudsweeper99, post: 1156319, member: 3011"]I don't agree. Annual supply frequently doesn't match annual demand. That's what causes surplus and shortage situations that must eventually be reflected in the price. For something like silver where there has historically been a large inventory until recently, annual supply was less than annual demand for a long time with the difference made up by the liquidation of inventories. And I find it difficult to believe that industrial usage of silver is a virtual constant. Think about it -- the data shows mine supply increasing but industrial demand constant, yet the price of silver rose a lot over the same period. I know that your answer is "investment" but it isn't satisfactory. The charts assume "investment" is coming out of current production and make no reference to increases and decreases in world inventories. It looks like their plug figure to me. </p><p><br /></p><p>I don't know what agenda the organization might have, but their numbers don't pass the reasonableness test for me.[/QUOTE]</p><p><br /></p>
[QUOTE="Cloudsweeper99, post: 1156319, member: 3011"]I don't agree. Annual supply frequently doesn't match annual demand. That's what causes surplus and shortage situations that must eventually be reflected in the price. For something like silver where there has historically been a large inventory until recently, annual supply was less than annual demand for a long time with the difference made up by the liquidation of inventories. And I find it difficult to believe that industrial usage of silver is a virtual constant. Think about it -- the data shows mine supply increasing but industrial demand constant, yet the price of silver rose a lot over the same period. I know that your answer is "investment" but it isn't satisfactory. The charts assume "investment" is coming out of current production and make no reference to increases and decreases in world inventories. It looks like their plug figure to me. I don't know what agenda the organization might have, but their numbers don't pass the reasonableness test for me.[/QUOTE]
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