Topic: Supply & Demand Price Contradictions: Bitcoin / Gold / Silver (Read 998 times)

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.

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 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.

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.

Silver has crashed in the last 5 years and continues to capitulate-



Gold  has also crashed -



Whether you look at 1 yr , 2 yr or 5 year chart .... what is inescapable is a large correction from a previous bubble and oversupply/.

Physical Gold & Silver are flying off the shelves as fast as they get coined.  "Supply" is getting very tight.  And yet price is dropping like a rock and mainstream media predicts it to fall off the cliff.  This price action goes totally against traditional economic laws of Supply / Demand.

Bitcoin is in a way the opposite..... new Bitcoins being mined every day.  Mainstream media says nobody wants bitcoin.  Big Financials & Banks say it is dead.  Nobody wants Bitcoin it seems.  So the Supply should be huge.   And yet the price is steadily climbing.

One scenario that makes sense of these two seemingly opposite contradictions is that a global crash is coming and people in the know / insiders are speeding up their positioning.  

Physical Gold & Silver are flying off the shelves as fast as they get coined.  "Supply" is getting very tight.  And yet price is dropping like a rock and mainstream media predicts it to fall off the cliff.  This price action goes totally against traditional economic laws of Supply / Demand.

Bitcoin is in a way the opposite..... new Bitcoins being mined every day.  Mainstream media says nobody wants bitcoin.  Big Financials & Banks say it is dead.  Nobody wants Bitcoin it seems.  So the Supply should be huge.  And yet the price is steadily climbing.

One scenario that makes sense of these two seemingly opposite contradictions is that a global crash is coming and people in the know / insiders are speeding up their positioning. 

Big Money is buying Gold/Silver hand over fist all while telling the masses of sheep it is going down - creating sellers for their buy.  Oldest Wall Street trick in the book. 

With bitcoin, they are basically just manipulatively shrinking the demand in advance of what they know will be a huge spike in demand..... no one still really knows about bitcoin, and the media is either not talking about it, or when they do they tie it to crime etc.  But it seems that the big money is buying.  These increases aren't because a few more forum members bought a few more bitcoin.  A small part of it is the slow but steady ongoing buildout towards mass adoption, but much is big money hedging their bets.

And it seems to be speeding up..... Gold and Silver is getting bought up fast.  Now, its happening to bitcoin too.  It's quickening.

Any thoughts on scenarios about the interaction of gold/silver with bitcoin if global economic meltdown of the current system were to hit.  Gold/Silver will go up because everyone KNOWS about them being safehavens in a crisis.  I wonder at what point that will translate from Gold/Silver to Bitcoin.  I think it will be a 2-step transition in the aftermath of a global financial crisis..... Fiat Money >>>> Gold/Silver >>>> Bitcoin.

My thinking is that the price/demand explosion that will come in Gold/Silver will be huge and fast like a rocketship.... UNTIL people realize it is going to be Bitcoin that is actually the next monetary evolution, and Soooo Much easier to get/transfer into etc..... and that this realization could happen quickly, in which case Gold/Silver could go back down as fast as it goes up.

OR.... will something happen that causes Bitcoin to become well known overnite, and totally steal the thunder from gold/silver in the event of a financial crisis?

Thoughts?

Physical Gold & Silver are flying off the shelves as fast as they get coined.  "Supply" is getting very tight.  And yet price is dropping like a rock and mainstream media predicts it to fall off the cliff.  This price action goes totally against traditional economic laws of Supply / Demand.

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.

Physical Gold & Silver are flying off the shelves as fast as they get coined.  "Supply" is getting very tight.  And yet price is dropping like a rock and mainstream media predicts it to fall off the cliff.  This price action goes totally against traditional economic laws of Supply / Demand.

Bitcoin is in a way the opposite..... new Bitcoins being mined every day.  Mainstream media says nobody wants bitcoin.  Big Financials & Banks say it is dead.  Nobody wants Bitcoin it seems.  So the Supply should be huge.  And yet the price is steadily climbing.
 

Anything with a definitive, finite supply will have to be the replacement currency. If we see the collapse of fiat currencies it will mean that it will be difficult for any government to reinstate it, especially if it is a global collapse and not just one or two countries having worthless currencies.

The only issue I see is that with the finite supply, you can only divide it so far, and so we have no real idea what will happen once we have to divide a finite supply beyond what it was originally intended for, in order to supply the needs of the populace.