Replies to post #33932 on Your Economy (No Politics) (YE1)

[al44]

Very interesting. But as investor demand outstrips supply which has been the force separating the physical from the paper market, how do you think the overall market will react in time? It sounds as if there are 2 distinct pipelines with one overflowing and the other running at a trickle. Thanks for your views and insight. It's good to hear from someone in the industry.

........al

[nlightn]

a very excellent point,...subtle,...but it makes a HUGE difference in analysis of metals.

the supply is there but the capacity for refineries to produce what is sought after by the market(s) is what makes it appear like a shortage,...

very good point(s) in discerning the difference in supply and demand.

The thing that I found shocking recently, is that now Europe is hitting fabrication bottle necks from demand at the refinery level. This does not mean there is no supply, there is ample metal, but refineries can only fabricate so much 400oz, 1000oz, or kilo bars at a time.