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Silver Lease Rates are Negative again.
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<p>[QUOTE="InfleXion, post: 1385759, member: 29012"]I actually don't love silver. I love the fundamentals of silver. I'd rather have a good woman if I had to choose <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie2" alt=";)" unselectable="on" unselectable="on" /> but the reason why silver is not $200/oz for example is because the people selling it do not make or lose money on the spot price because they hedge. I've explained this elsewhere. The people who don't hedge just pull their inventories after smackdowns like today. Everybody around in May and September experienced this, as I recall the discussions about whether the inventory was gone or whether it was just pulled, but the big online dealers still provide real time pricing no matter what the price is doing. This illustrates how price really does not matter to them. Since coin shops and folks like us can take advantage of this price mechanism, they pass it on to their customers, but unfortunately when silver is no longer readily available it will not be a gradual transition since these mechanisms prevent the need for price adjustment according to physical supply and demand. </p><p><br /></p><p>The only way silver can price itself out of the market is if it becomes more expensive than gold or platinum. It could happen, but I don't see that happening for at least 10 years. Even then, there will be loss of quality. As long as money is part of society people will be willing to pay extra for the better quality. I don't know any computer buffs who don't want the fastest computer possible. Unless molecular / photonic microprocessing becomes a reality for the masses (it probably already is for the MIB's) then nothing will provide better computing speeds than silver.[/QUOTE]</p><p><br /></p>
[QUOTE="InfleXion, post: 1385759, member: 29012"]I actually don't love silver. I love the fundamentals of silver. I'd rather have a good woman if I had to choose ;) but the reason why silver is not $200/oz for example is because the people selling it do not make or lose money on the spot price because they hedge. I've explained this elsewhere. The people who don't hedge just pull their inventories after smackdowns like today. Everybody around in May and September experienced this, as I recall the discussions about whether the inventory was gone or whether it was just pulled, but the big online dealers still provide real time pricing no matter what the price is doing. This illustrates how price really does not matter to them. Since coin shops and folks like us can take advantage of this price mechanism, they pass it on to their customers, but unfortunately when silver is no longer readily available it will not be a gradual transition since these mechanisms prevent the need for price adjustment according to physical supply and demand. The only way silver can price itself out of the market is if it becomes more expensive than gold or platinum. It could happen, but I don't see that happening for at least 10 years. Even then, there will be loss of quality. As long as money is part of society people will be willing to pay extra for the better quality. I don't know any computer buffs who don't want the fastest computer possible. Unless molecular / photonic microprocessing becomes a reality for the masses (it probably already is for the MIB's) then nothing will provide better computing speeds than silver.[/QUOTE]
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Silver Lease Rates are Negative again.
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