I've heard people here assert that silver being bought for storage counted as supply and others argue it was demand. To me it seems like it would act like demand when being purchased, but would act as somewhat of supply as people disgorged it based on need to turn to cash or realize appreciation.
"There is another reason to look back over the past 13 years, Eric, and view them as one time span: One losing year after 12 winning years is not that bad. Even with 2013 added in, over the last 13 years gold has generated an average annual return greater than 13%. It has been and remains one of the best assets to own, particularly given that neither physical gold nor physical silver has counterparty risk, and just like every other bubble inflated by banks or governments, the 'Money Bubble' will pop too."
-- James Turk, GoldMoney
"I've been to San Francisco with my wife 40 times, and I have never seen the city of San Francisco slower at any time in the past 40 years. I went shopping for Christmas gifts, and normally there would be lines out in the street at some of these places. Instead, I went right in with no wait, made my purchases and went straight to the cashier and paid without waiting.
So there is something strange going on. Everyone is saying the US economy is strengthening, and President Obama was saying today that there could be a real turnaround in 2014. I see all of this as propaganda and outright lies because from what I observed with my own eyes, the bullish talk is patently false.
I don't see the strength in the US economy at all. They just had about the third or fourth upward revision of the 3rd quarter GDP. And now, because the consumer had not been doing well, they cranked up the consumer numbers in the latest adjustment. So I think there is something seriously wrong, and as a result they are falsifying a lot of data in a desperate attempt to try to cover it up. But I strongly believe that the harsh reality will become all too obvious as 2014 unfolds."
"There's certainly some Central Bank manipulation. There's some fundamental reasons having to do with what we've been talking about, which is deflation. Gold should go down in a deflation environment initially. But if deflation gets bad enough, the government will make the price of gold go up because they get desperate to create inflation.
If you've tried everything, if you want inflation, and you've tried everything to create it, so you tried money printing, cutting rates, currency wars, Operation Twist, QE, forward guidance, nominal GDP targeting, you've tried everything, you still didn't get the inflation. There's one thing that always works, which is devaluing your currency against gold. So there could come a time when deflation gets so bad that the Fed and the treasury actually raise the price of gold, not to enrich gold investors, but to get close to generalized inflation. Because if gold goes up, silver and oil will go up along with it. It's exactly what happened in 1933. So that's one path. But the other, perhaps more likely path, is that the Fed just keeps printing money and finally succeeds in changing behavior, velocity of the turnover money picks up and inflation goes up on its own. Then gold will race way ahead of that."