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<p>[QUOTE="Slider, post: 1705757, member: 44205"]Yes, I would agree with this. Demand doesn't necessarily have to decrease for price margins to moderate. There will always be buyers and sellers of PM at any price. The current margins are exaggerated, in part, buy dealers who were not properly hedged. However discounted some people might believe silver to be, there are still sellers in this market. As sellers continue to provide a supply of lower priced metal to dealers, they will slowly begin to adjust their margins back to more traditional levels as competition overtakes panic. </p><p><br /></p><p>Obviously, the longer that silver stays in this price range, silver bugs will eventually become satiated with what they can afford to buy and the surge in physical demand will subside. But a dramatic drop in physical demand isn't necessary to see declining margins.[/QUOTE]</p><p><br /></p>
[QUOTE="Slider, post: 1705757, member: 44205"]Yes, I would agree with this. Demand doesn't necessarily have to decrease for price margins to moderate. There will always be buyers and sellers of PM at any price. The current margins are exaggerated, in part, buy dealers who were not properly hedged. However discounted some people might believe silver to be, there are still sellers in this market. As sellers continue to provide a supply of lower priced metal to dealers, they will slowly begin to adjust their margins back to more traditional levels as competition overtakes panic. Obviously, the longer that silver stays in this price range, silver bugs will eventually become satiated with what they can afford to buy and the surge in physical demand will subside. But a dramatic drop in physical demand isn't necessary to see declining margins.[/QUOTE]
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