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Why Are Prices Falling While Demand Is Rising?
Gold and silver bullion investors might reasonably assume prices have a lot to do with physical supply and demand. On a day-to-day basis, they don’t. If they did, prices would be much higher.
Consider the extraordinary demand for physical silver. It is setting another record in China where silver imports, which account for a fifth of world consumption, are up 36% through October. The story is similar in India, another of the largest markets in the world. And government mints are struggling mightily to keep up with record demand for gold and silver bullion coins.
Meanwhile, lower and lower prices continue to devastate the mining industry tasked with providing supply. Inventories are dwindling because crippled mining companies aren’t keeping up. COMEX gold inventories sit at record lows, with just a few tons