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<p>[QUOTE=&quot;Cloudsweeper99, post: 1542864, member: 3011&quot;]Correct, but think of it this way.&nbsp; If producers can produce at $10 per ounce and the market price is $30 and demand is 1,000 ounces at that price, producers will produce 1,000 ounces and sell it at $30, and since it is still profitable they will continue to produce more than the market can absorb at $30 so that the price will continue to drop to $25, then $20, then $15, and they will only stop producing when it isn&#039;t profitable anymore.</p><p><br /></p><p>I think the mistake you are making is to assume that demand is unlimited at the current market price when, in fact, it will take lower prices to attract additional buyers.[/QUOTE]</p><p><br /></p>

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