tag:blogger.com,1999:blog-2632357035930457754.post627041608172827120..comments2024-02-06T09:43:58.911+01:00Comments on Correlation Economics: Silver off to the raceskatchumhttp://www.blogger.com/profile/16885231288918100897noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2632357035930457754.post-39136072482131530732012-08-06T12:59:15.013+02:002012-08-06T12:59:15.013+02:00Since China is the largest consumer of silver for ...Since China is the largest consumer of silver for industrial purposes, and since the Chinese economy is is still enjoying robust output growth, silver inventory must be growing. CME stocks maybe declining, but that does not necessarily mean world socks are going down.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2632357035930457754.post-76488513468886937332012-08-05T14:54:35.054+02:002012-08-05T14:54:35.054+02:00Hello, thanks for pointing that out. Do you know w...Hello, thanks for pointing that out. Do you know why it is being migrated to China?katchumhttps://www.blogger.com/profile/16885231288918100897noreply@blogger.comtag:blogger.com,1999:blog-2632357035930457754.post-61498372717697294352012-08-03T11:47:52.823+02:002012-08-03T11:47:52.823+02:00The decline in CME stocks might not be attributabl...The decline in CME stocks might not be attributable to decling supply or any fundamental change in the silver market. Rather, CME stocks may be migrating to China, following the trend set by copper over the past few years.<br /><br />The price of silver since is more likey to driven by real interest rates, such as the yield on long dated US Treasury bonds. As the yield on T-Bills falls, so too will the silver price. When real interest rates start rising again, then the price of silver will take off.<br /><br />When interest rates remain low and declining, that is a sign that investors have expect inflation to follow the same pattern. Since silver is a hedge against inflation, the price of silver is likely to remain below $28/oz.Anonymousnoreply@blogger.com