http://www.insidefutures.com/article/1123005/Silver%20-%20A%20Rigged%20Market%20Coming%20To%20An%20End.html
No one can question the fact that the demand for silver has grown exponentially in the
past few years, record sales for American Eagle coins being one small example, record
buying in India, another larger example. Demand has never been greater. Supply, on
the other hand, keeps diminishing.
Global mining production is at its lowest in the past decade. The annual Consumption/
Production ratio is indicative of acute deficits. Whenever there is a situation where
demand rises sharply, while supply commensurately declines, it is a recipe for higher
prices, and usually, much higher prices. This is true, unless one is talking about the
silver market. Under the conditions of record rising demand and considerably less
supply, the price of silver is at its lowest levels in the past three years.
With talk of silver going anywhere from $150 to $500 higher, it currently struggles to
hold $20, why is this so?
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