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When there is no supply and high demand price goes up?

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Just an FYI on silver right now. There is extremely limited supply, and huge demand. Online wholesalers of silver are running out of junk coin and small bullion (usually used for trading), but the spot price is going down? This is counter to what should happen. On a supply/demand graph, if demand remains the same and supply goes down, price will go up. If supply remains the same and demand goes up, price goes up. If demand goes up and supply goes down, price should go up even more than either of the two happening individually. Why is silver not going up in the spot market? This is counterintuitive…

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Written by Sean

October 15th, 2008 at 11:16 am

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