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<p>[QUOTE=&quot;10gary22, post: 1389539, member: 23626&quot;]The correletion between oil and PM&#039;s is about the same as that of Corn, plywood, pork bellies, etc. Traders move money from one commodity to another with an investment strategy. This can cause wide fluctuations in underfunded markets like PMs.</p><p><br /></p><p>The Chinese opened private ownership of PMs a couple of years ago. As the Chinese, who like everyone else (perhaps moreso) have a basic distrust of currency and government are buying and holding the metal as individuals. Coupled with India, whose people have a love of the stuff, a HUGE market is created. Add international buying power through the internet and the whole picture is changed somewhat. The government or banking investor will still exercise a major influence, but not as much as they once did. There are a billion people who can now legally own some gold or silver as a form of insurance that couldn;t before. And owning PMs is insurance. That&#039;s all it is. Protecting what you have against future economic changes. If people in China have increase in buying power, they will buy more metal. </p><p><br /></p><p>That&#039;s how I see that aspect. Now there is a PM bubble. Modern mining techniques can get the metal out more cheaply than ever before (factoring inflation). If silver fell to $15, the mines would still operate at a profit and would keep mining. Will the bubble pop ? Sure. When ? Who knows. But if you buy and sell following the trends with some luck in the timing, you will profit either way............hopefully. At least that&#039;s what PM dealers try to do.</p><p>IMHO</p><p><br /></p><p>gary[/QUOTE]</p><p><br /></p>

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