Tuesday, July 28, 2015

Supply And Demand In The Gold And Silver Futures Markets | Zero Hedge

Supply And Demand In The Gold And Silver Futures Markets | Zero Hedge: "To summarize: a decline in the price of gold can be caused by a decline in the demand for gold or by an increase in the supply of gold.

A decline in demand or an increase in supply is not what we are observing in the gold and silver physical markets. The price of bullion in the futures market has been falling as demand for physical bullion increases and supply experiences constraints. 

What we are seeing in the physical market indicates a rising price. Yet in the futures market in which almost all contracts are settled in cash and not with bullion deliveries, the price is falling."



This is the second time in 9 months that the U.S. Mint could not keep up with market demand and had to suspend sales.



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