Monetary Metals Supply and Demand Report: 6 July, 2014

This week was shortened due to the 4th of July holiday in the US. Still, there were no fireworks in the metals markets, unlike in the sky on Friday evening. The prices of the metals crept up slightly. The supply and demand fundamentals, on the other hand… First, here is the graph of the metals’ [...]



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4 replies
  1. [email protected] says:

    Hi Keith

    If possible I would be interested in your thoughts about those who push the …

    *manipulation of G &S prices line

    * short squeeze line

    * That the price has to go up because the price is less than the cost of production line.

    Regards
    Steve

    • Keith Weiner says:

      Scroll back through the site, I have written numerous articles debunking various aspects of the manipulation conspiracy theory.

      As to the cost of production, the answer is simple. The stocks to flows ratio (inventory divided by annual mine production) is measured in decades for gold (as compared to months for any normal commodity). Gold is not consumed, and all of the gold mined in human history is basically still in human hands. Gold miners could shut down (or double their production) tomorrow and it would hardly affect the gold price.

      • [email protected] says:

        I figured you would say something like that. Ive read all your articles.

        What I was getting at is how is it that these advisor types can get it so wrong on supply/demand, short squeezes and manipulation conspiracy thinking.

        ** re gold mines shutting down…if its too costly to mine why don’t they go buy gold on the open market.

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