How is physical buying measured in the marketplace and is it a global and/or domestic measurement? Can you please define open interest and give us some functional examples? Thank you!
thinkpeace: Open Interest is the number of futures contracts active at any given moment. This number can rise if there is rising speculation, and it would rise if banks were naked short selling to manipulate the price.
happel: Gold and silver have “stocks to flows” (inventories divided by annual mine production) measured in decades. All of that inventory is potentially supply in the market. If silver mining dried up, it would not have much effect on price. In any other commodity, stocks to flows is low and if production slows then price is immediately impacted.
I have watched the video. My question is if you are right and the silver price reaches 70x that on the gold. That will then be at an all time high historically in the gold to silver ratio. If you base prediction on historical activity then the only direction for it to go after that is down. Does that mean you expect in the short term the silver to gold ratio to step up to 70x that of gold and then a sharply decrease to the historical average multiplier of around 30-40x?
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How is physical buying measured in the marketplace and is it a global and/or domestic measurement? Can you please define open interest and give us some functional examples? Thank you!
Do you support some of the commentary out there recently calling for ‘Peak Silver’?
thinkpeace: Open Interest is the number of futures contracts active at any given moment. This number can rise if there is rising speculation, and it would rise if banks were naked short selling to manipulate the price.
happel: Gold and silver have “stocks to flows” (inventories divided by annual mine production) measured in decades. All of that inventory is potentially supply in the market. If silver mining dried up, it would not have much effect on price. In any other commodity, stocks to flows is low and if production slows then price is immediately impacted.
I have watched the video. My question is if you are right and the silver price reaches 70x that on the gold. That will then be at an all time high historically in the gold to silver ratio. If you base prediction on historical activity then the only direction for it to go after that is down. Does that mean you expect in the short term the silver to gold ratio to step up to 70x that of gold and then a sharply decrease to the historical average multiplier of around 30-40x?
http://www.paulayling.me/silver-is-the-best-hedge-against-inflation