Supply and demand and price action
This is another quickie blog. I am confused by the way people view silver and gold prices. Whenever silver prices plunge I always see blogs about how silver is so cheap now that the physical websites have completely sold out of bullion. If a company sells out of bullion then clearly the demand is huge. If the demand is huge, it would push the price up. So how could they be running out of bullion as the price keeps dropping? Strictly because the futures market is out of wack?
Also, a lot of people think it is absurd that anybody would buy gold on a spike. Although I never would, obviously somebody would because it could not reach a level without a transaction taking place.