What the precious metals market has seen over the last week in both silver and gold is a worldwide surge in physical demand as prices fell. This is what happens when the management of perception backfires.
How is it possible gold goes down $200 in the paper market while there is almost no supply available to buy around the world? Last I checked, dwindling or completely absent supply against steady and increasing demand means higher prices, not sudden price drops.
A comparison of two types of intervention has become interesting with respect to silver. First of all, Central Planning support of the mortgage and housing markets has already reached the supernova stage.
Some silver investors must be wondering why hang on to their metal at this point? Perhaps the most compelling answer is inflation, since an increase in the money stock will eventually lead to higher prices.
Fracking in the US is here to stay, affirmsthe editor of the Oil & Gas Investments Bulletin. North American business is dependent on cheap energy, and even energy utilities are switching from coal to natural gas.
Gas prices are a product of supply and demand. This article attributes recent gas price increases to stagnant oil supplies and growing global demand from emerging Asian economies - not speculators. Additional shocks to the U.S. refining capacity further tightened gas prices in the U.S. These forces will likely keep gas prices high for the foreseeable future.