Gold and silver lower spot prices are driven by the paper futures market and
are at times disconnected from real-world supply availability of gold and silver.
Never have supplies been tighter, nor commissions to buy silver/gold higher,
which reveals just how truly out-of-wack and unsustainable the current low
artificial paper price of gold and silver currently is.
It'd be like gas dropping a buck, but you can't get any cause everybody is
sold out, or at the few places where you still can it's got a 50 cents a gallon
surcharge added on by the gas station. Unfettered supply/demand reflecting
true price discovery and value does not work that way for long at all.
Can't say when the gold/silver price rises to reflect their true supply/demand
value, but I'm firmly convinced that it's inevitable. Probably happen in concert
with the dollar returning to its true declining value as determined by its long
trending eroding demand and ever increasing supply.
My guess is that smart money worldwide is divesting themselves of many of
their dollar denominated instruments, while $'s higher now, and buying more
physical gold/silver, while it's depressed. If people were not buying gold/silver,
it would not be in such extreme short supply, nor have the highest commissions
we've ever seen.
Got God, Grub, Guns & Gold?
Panic Early, Beat the Rush!
-
Shane