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<p>[QUOTE=&quot;InfleXion, post: 1782751, member: 29012&quot;]It&#039;s not my assertion. Silver Institute numbers speak for themselves.</p><p><br /></p><p>The fact remains that yearly demand exceeds mining supply. Note how I did not say total supply, but rather mining supply. Obviously demand cannot exceed supply because price is the mediator. Also note how I did not say industrial demand, but rather yearly demand, as in total demand.</p><p><br /></p><p>The definitions I&#039;ve used were accurate. I did not say silver has disappeared. You may choose to ignore investment demand as being part of demand, but that&#039;s not what I choose to do. Supply quantity may be restricted by recoverability, but the law of supply and demand is not impacted by that.</p><p><br /></p><p>To exclude any available supply or any demand from the equation will lead to inaccurate price discovery. Yes, I am excluding investment supply from my scenario, but not for the purpose of price derivation which is an automatic market function; rather to highlight that mining alone cannot sustain the silver market at current price.</p><p><br /></p><p>If it is too costly or difficult to recover for whatever reason whether buried in a landfill, floating in outer space, or stacked in a safe somewhere by strong hands it is simply not part of the supply equation until price is sufficent for it to be recovered by the market.</p><p><br /></p><p>Even commercial disappearance is not gone. Metal can and will be recovered at the right price. Just as it will come out of investor hands at the right price. Just as it will continue to come out of the ground at the right price.</p><p><br /></p><p>Investment demand is as relevant to supply as any other kind of demand, and mining + recycled supply is insufficient without investment supply at the current price. Therefore the only way for the price not to rise is either for investors to be willing to sell at or below their cost, or for total demand to abate to less than yearly mining + recycled supply, but I wouldn&#039;t count on either of those things in the current environment. The trend is consistent and clear.</p><p><br /></p><p>As long as total demand exceeds mining supply the silver market will be dependent upon recycled metal and to a greater extent upon existing positions parting with their metal. As long as they are willing to do so at the current price there is no need for price to rise. If the price rises then we will see more come to market and that is what it would take to reverse the trend.</p><p><br /></p><p>Time will tell how the supply/demand story unfolds. However, it doesn&#039;t take a rocket scientist to understand a skewed metric.[/QUOTE]</p><p><br /></p>

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