Recycling in the platinum market experienced quadrupled over the last decade. Compounding which bearish supply factor, industrial demand has melted considerably, and even jewelry demand from customers has been shown to be more price-sensitive than previously thought.
The mixture of these factors has meant that platinum stocks are abundant, and with fragile supply/demand fundamentals and abundant stocks, prices have floundered; with the price of platinum now buying and selling below the price of gold which is a very uncommon situation.
With a concrete instance illustrating both supply/demand fundamentals and just how markets are supposed to respond to individual fundamentals;
We can begin by looking at the very low, current price of silver. This particular artificial/suppressed/
During the almost 5,000 years in which humanity continues to be mining/refining gold and silver; the gold/silver price ratio offers averaged roughly 15:1. Yet presently (and through all the recent years of silver manipulation)
We know that this is really a case of silver being under-priced rather than gold being over-priced through merely examining the supply-side of the gold and silver marketplaces:
Indeed, silver exploration is so severely depressed which despite a six-fold increase in the price associated with silver over the last decade most of the world’s silver continues to be produced as a secondary consequence of other mining -- while bankrupted silver mines remain shuttered all over the planet, and new projects are incredibly slow to develop.
Further proof of the suppressed/manipulated price associated with silver comes from the collapse associated with inventories, where global stocks plummeted by more than 90% over simply 15 years (from 1990 - 2005). Despite the collapse in inventories, the actual six-fold increase in the price of silver has hardly registered any reaction whatsoever on the supply side, where mine-supply limps higher in an anemic rate of about 2% per year.
This is however more proof of silver price-manipulation, as with any/every commodity marketplace where prices are free to respond to supply/demand basic principles, we would see prices rise in order to whatever level was necessary to gas new supply and discourage usage - until supply/demand equilibrium is actually reached. This is the literal meaning of a “free market”, something which most of us have never witnessed in the silver market during the entire life span.
This brings us to trying to recycle. Here a comparison of the silver market and also the platinum market is highly instructive given the actual many, close similarities between the 2 markets. Both silver and platinum have an abundance of superb chemical/metallurgical properties. Both of them are used in many high-tech industrial applications. As well as both tend to be used in little quantities in those applications.
Right here the similarities end. Because already noted, platinum recycling offers quadrupled over the past decade, despite the price associated with platinum having merely doubled over which time-span. In our inflation-ravaged economies, the price associated with platinum has under-performed versus most other goods.
In the silver market, those guidelines are totally reversed. Regardless of the six-fold increase in the price of silver over that same time-span, silver trying to recycle has remained essentially flat. The actual least-worst source for supply/demand data around the silver market is the Silver Institute. Silver-recycling happens to be such a minor factor in the actual supply/demand picture that it doesn’t even record trying to recycle data as a category on its own.
Instead, silver-recycling is subsumed by the group of “old silver scrap” sales, which primarily includes ordinary people pawning their sterling silver dinnerware and tea services. However even when we combine the actual pawning and actual “recycling”
Half of that increase occurred in 2011 by itself, when the price of silver briefly rose to a (nominal) 30-year high. With the price associated with silver now more than 30% below which peak, we will likely observe that recycling/scrap-
All of us live in an era of trying to recycle mania, yet silver-recycling is nearly as stressed out as the silver mining industry by itself. Why is this? Severe under-pricing of silver may be the only possible explanation.
Along with silver inventories having collapsed while platinum stocks remain abundant; we with each other have a much greater motive/incentive to reuse silver than to recycle platinum. With silver being utilized in some of our most-important emerging technologies (from cruise missiles to solar-panel cells in order to unique anti-microbial compounds); we have a significantly greater incentive to reuse silver than to recycle platinum.
Again, there's only one possible explanation why platinum recycling is exploding while silver trying to recycle is extremely depressed: the gross under-pricing of silver. In previous commentaries I have stated how the permanently depressed condition of silver mining is complete proof of silver price-suppression.
For over 4,000 years the majority of the world’s silver came from “primary” silver mining. It was just after the price of silver was powered (manipulated)
With trying to recycle being the “other component” of supply, we have totally independent verification of this theory of logic/economics previously expressed. The only real possible reason why the supply associated with silver remains in a permanent state associated with depression - despite the total collapse of inventories - is because of the permanent suppression of the price.
With the price associated with gold also depressed (as confirmed by the struggling gold miners); at it's historical average $110/ounce for silver would signify an absolute minimum “fair price” for silver today. However, by the time prices had increased enough to restore health to the silver as well as gold mining industries; we would more be looking at a “minimum price” for silver someplace in excess of $150/oz - today.
Given the actual extreme/unlimited currency-dilution now taking place on both attributes of the Atlantic, this “minimum fair price” with regard to silver can only increase exponentially from the $150/oz level. The actual platinum market provides us with a crystal-clear image of how the silver market might behave - if it had been ever freed from the persistent price-manipulation of the Western banking cabal. How high will silver go? Learn more >> http://gold-