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Interesting Charts: US Mint Gold/Silver Demand Vs Gold/Silver Price YTD
This happened a few years back and a combination of market reactions took place in the physical market. The supply became tight for some specific types of bullion and the premiums increased. Now think back to Econ 101 and supply/demand curves. Recall the one for price controls. What happened when Nixon imposed price controls on gasoline? Supply disappeared. This is what happened a few years ago in pm's and is starting to happen today. The market is saying that the official price of gold or silver is lower than what I think mine is worth. Ergo, I'm not willing to sell. With the bounceback today in both the POG and POS, who really knows. The short term markets are always going to be subject to market forces. If someone out there has enough of a position to tilt the market in their favor, they will surely do so. I would and all y'all would. And these two markets are actually so thin that it doesn't take much to cause a stir. feh.
I'm still way bullish on gold and even more so, silver, in the near, medium and long term. Uncle Ben is still on a monetization plan as are most every other developed country in the world. My wee stash is my bed buddy in an uncertain world.
- In keeping with the spirit, guess I'll light up a stogie with a $ bill when we're down in Florida next week. Used to be just for millionaires. Now any bum can afford it. Take care.
Comments
Next time I'm going to drill a 1/4" hole in either a dime or a nickel, and save, depending, either 10¢ or 15¢. Each.
Who says our currency is worthless?
And nickels are worth more than a nickel in metal.
This happened a few years back and a combination of market reactions took place in the physical market. The supply became tight for some specific types of bullion and the premiums increased. Now think back to Econ 101 and supply/demand curves. Recall the one for price controls. What happened when Nixon imposed price controls on gasoline? Supply disappeared. This is what happened a few years ago in pm's and is starting to happen today. The market is saying that the official price of gold or silver is lower than what I think mine is worth. Ergo, I'm not willing to sell. With the bounceback today in both the POG and POS, who really knows. The short term markets are always going to be subject to market forces. If someone out there has enough of a position to tilt the market in their favor, they will surely do so. I would and all y'all would. And these two markets are actually so thin that it doesn't take much to cause a stir. feh.
I'm still way bullish on gold and even more so, silver, in the near, medium and long term. Uncle Ben is still on a monetization plan as are most every other developed country in the world. My wee stash is my bed buddy in an uncertain world.
peace,
rono
- In keeping with the spirit, guess I'll light up a stogie with a $ bill when we're down in Florida next week. Used to be just for millionaires. Now any bum can afford it. Take care.