Supply & Demand Price Contradictions: Bitcoin / Gold / Silver

[franky1]

85% of gold is used in industrial applications, 15% for investment. Probably for silver, the percentage for industrial applications is even higher. Since industry is going down the drain because of the coming bust (China, etc.), industrial demand for gold and silver is clearly falling. The price is not manipulated as much as the gold and silver bugs think, this theory is only around because of their rationalizations. Sure, they might manipulate $1 or $2. I think for gold and silver, the price will fall even further, before investment demand finally takes over industrial demand.

Meanwhile, use of bitcoin is growing and the price reflects that.

So, imo, there is no supply&demand price contradiction, neither for gold, nor for bitcoin.

85% industry 15% investment..

the numbers of pre millennium were probably
99% hoarded and not on any market.
0.85% sold to industry
0.15% sold to investment firms

now its more like

80% hoarded
8.5% industry
1.5% investment firms and
10% international retail(think dubai)
now the financial and retail market is saturated with gold

[1715254325]

1715254325

[The Sceptical Chymist]

The U.S. has been minting record amounts of new silver eagles since about 2011 when we had the price spike.  If this doesn't tell you that silver isn't in short supply, then I don't know what can.  Take a look at all the shitty silver coins and medals on places like MCM, Liberty Coin, and many other places.  Tiny island countries like Tuvalu are minting stupid-ass colorized 0.999 silver coins, and there are more Happy Birthday, Merry Christmas, Go Navy, etc. etc. commemorative 0.999 silver medals than anyone can possibly buy.

Plus yours is the same argument that I've been hearing for years as a justification for why PM prices should be skyrocketing (!!!).  The fact, I think, is that 1) hucksters will lie, and 2) the market is glutted.  And gold and silver prices, well, they're falling.

Well won't the price of most PMs fall, aside from inflation, because they are generally available, and more and more continues to enter the market? I wouldn't expect there to be a fall in the price until we have hit peak gold/silver, because it is fairly easy to get out of the ground with modern techniques, and there is always cheap labor available.

There will always be terrible versions of PMs available, and it just so happens that thanks to cheaper labor we are able to have an abundance of pieces of shit floating throughout the market.

Well yes, that's exactly what I was saying. Except I don't understand what you meant about labor. Precious metals, I think, are falling because there is so much of it on the market.

[Yakamoto]

The U.S. has been minting record amounts of new silver eagles since about 2011 when we had the price spike.  If this doesn't tell you that silver isn't in short supply, then I don't know what can.  Take a look at all the shitty silver coins and medals on places like MCM, Liberty Coin, and many other places.  Tiny island countries like Tuvalu are minting stupid-ass colorized 0.999 silver coins, and there are more Happy Birthday, Merry Christmas, Go Navy, etc. etc. commemorative 0.999 silver medals than anyone can possibly buy.

Plus yours is the same argument that I've been hearing for years as a justification for why PM prices should be skyrocketing (!!!).  The fact, I think, is that 1) hucksters will lie, and 2) the market is glutted.  And gold and silver prices, well, they're falling.

Well won't the price of most PMs fall, aside from inflation, because they are generally available, and more and more continues to enter the market? I wouldn't expect there to be a fall in the price until we have hit peak gold/silver, because it is fairly easy to get out of the ground with modern techniques, and there is always cheap labor available.

There will always be terrible versions of PMs available, and it just so happens that thanks to cheaper labor we are able to have an abundance of pieces of shit floating throughout the market.

Well yes, that's exactly what I was saying. Except I don't understand what you meant about labor. Precious metals, I think, are falling because there is so much of it on the market.

Well yes, prices are falling because more of them are becoming available, but part of why there are such increases is partially because of cheaper labour allowing for more mines to be active at the same time, if I am correct. I can be 100% wrong right now, and I don't have enough knowledge in the topic, but that's partially what I'm thinking. I'm also not saying that cheap labour is a bad thing, as it is technically a good thing for most of society.

[USB-S]

The U.S. has been minting record amounts of new silver eagles since about 2011 when we had the price spike.  If this doesn't tell you that silver isn't in short supply, then I don't know what can.  Take a look at all the shitty silver coins and medals on places like MCM, Liberty Coin, and many other places.  Tiny island countries like Tuvalu are minting stupid-ass colorized 0.999 silver coins, and there are more Happy Birthday, Merry Christmas, Go Navy, etc. etc. commemorative 0.999 silver medals than anyone can possibly buy.

Plus yours is the same argument that I've been hearing for years as a justification for why PM prices should be skyrocketing (!!!).  The fact, I think, is that 1) hucksters will lie, and 2) the market is glutted.  And gold and silver prices, well, they're falling.

Well won't the price of most PMs fall, aside from inflation, because they are generally available, and more and more continues to enter the market? I wouldn't expect there to be a fall in the price until we have hit peak gold/silver, because it is fairly easy to get out of the ground with modern techniques, and there is always cheap labor available.

There will always be terrible versions of PMs available, and it just so happens that thanks to cheaper labor we are able to have an abundance of pieces of shit floating throughout the market.

Well yes, that's exactly what I was saying. Except I don't understand what you meant about labor. Precious metals, I think, are falling because there is so much of it on the market.

Well yes, prices are falling because more of them are becoming available, but part of why there are such increases is partially because of cheaper labour allowing for more mines to be active at the same time, if I am correct. I can be 100% wrong right now, and I don't have enough knowledge in the topic, but that's partially what I'm thinking. I'm also not saying that cheap labour is a bad thing, as it is technically a good thing for most of society.

I might be wrong but gold mining industry isn't really profitable anymore, considering that there are just so many of them around. My guess would be that most of them are pretty much operated by the same group of people.

However as bitcoins supply keeps decreasing and the demand and difficulty increasing, the price has nowhere else to go but up.