"US Mint Sells Absolute Record 6.4 Million Ounces Of Silver In January, 50% More Than Previous Highest Month"
Maybe now people will begin to understand the relationship between supply, demand and price.
As demand surges and supply is tight, price must rise sufficiently to overcome "reservation demand", meaning the demand or resistance of existing owners of their metal NOT to sell.
US mint is also selling record amounts of gold, despite central banks no longer selling 500+ tonnes each year and mining production flat. Not to mention surging demand in China.
So where is all this record amount of supply coming from? Well, from the existing hoards of course... and because silver is consumed in industrial use and is therefore rarer, its price must rise further than gold in percentage terms to overcome the resistance not to sell.
Just remember everyone buying now intends selling to a greater fool sometime in the future.
