Official "Science News" Thread

[xilman]

Originally Posted by LaurV

Nothing. I hope you (all) don't imagine that the actual prices of precious metals have anything to do with the supply and demand. Especially gold, platinum and silver. I have a much better opinion about you (all)...

In which case, you should study what happened to the Spanish economy in the 16th century, an event from which it still hasn't recovered.

[LaurV]

We live in 21st century. That time they had no wallstreet.

[xilman]

Originally Posted by LaurV

We live in 21st century. That time they had no wallstreet.

Is the wrong answer.

[rogue]

http://www.abc.net.au/science/articl...26/3489504.htm

[LaurV]

Originally Posted by xilman

Is the wrong answer.

Nope, it was the right answer. I was and am making money from trading currencies and metals even for longer then I was crunching for GIMPS. Taking only about gold, in the last 10 or 15 years there is no increase in the demand for gold that would justify increasing the gold price. The big consumers, like electronics, space industry, etc, have already substitutes which are cheaper and have better properties, and the biggest gold importers in the world (the Vietnamese and Koreans, counting for over 40% of gold imports at the time, no joke!) stopped importing in 2008 (what caused the fluctuations at that time, see for example Franklin Sanders' page (select last 10 years). They announced they would resume the imports in Sept. 2011 and please have a look to the charts.

And this only to give you an example. Try having a look in Peter Schiff's cartoon book too (the one with how the economy should grow and why it crashes) to have some idea.

There is nothing about supply and demand there, ESPECIALLY on the metals market. Some smart money are making the game. Now the people are scared after the fluctuations in the last time, and they are starting to go short, that is why I assume the smart money are long again. Maybe a billion of cheeshead's/xyzzy's ships could make the price fall, but no less, and for sure only one ship has no chance :D

[xilman]

Originally Posted by LaurV

Nope, it was the right answer. There is nothing about supply and demand there, ESPECIALLY on the metals market. Some smart money are making the game. Now the people are scared after the fluctuations in the last time, and they are starting to go short, that is why I assume the smart money are long again. Maybe a billion of cheeshead's/xyzzy's ships could make the price fall, but no less, and for sure only one ship has no chance :D

I am fairly sure that if I dumped a thousand tonnes per annum of gold on the market the price would fall significantly. A thousand tonnes of platinum would make an even bigger effect because of its use in the catalyst business.

[bcp19]

Originally Posted by xilman

I am fairly sure that if I dumped a thousand tonnes per annum of gold on the market the price would fall significantly. A thousand tonnes of platinum would make an even bigger effect because of its use in the catalyst business.

There is an estimated 2.4 million tonnes in the world, 1000 tonnes would equate to .04% of the current supply, hardly a noteworthy addition.

If Playstation comes out with the PS4 and decides to produce 2.401M units instead of 2.4M units, do you really think the scalper price on ebay would be affected?

[xilman]

Originally Posted by bcp19

There is an estimated 2.4 million tonnes in the world, 1000 tonnes would equate to .04% of the current supply, hardly a noteworthy addition.

If Playstation comes out with the PS4 and decides to produce 2.401M units instead of 2.4M units, do you really think the scalper price on ebay would be affected?

And what is the annual production at present?

[Dubslow]

Originally Posted by xilman

And what is the annual production at present?

Umm... no such thing. It was a hypothetical.


(Edit: Whoops )

[wblipp]

Originally Posted by Dubslow

Umm... no such thing. It was a hypothetical.

I think he meant "of gold," not of "PS4s." I was also thinking that total world amount isn't the right comparison because much of it isn't available to the market most of the time. I'm not sure current annual production of gold is the right amount, either, but it seems like a better starting point.

[Dubslow]

Originally Posted by wblipp

I was also thinking that total world amount isn't the right comparison because much of it isn't available to the market most of the time.

I'm also thinking that that was LaurV's point about prices having no correlation with supply (and demand).