/biz/ - Business & Finance

Anons, this is my prediction. See picrel
When uranium suddenly became in short supply, uitlities were willing to sign long term contracts at obscene prices to get supply. They needed supply. At any price. The marginal and desperate buyer, sets the price. Organizations like Apple, Samsung, Panasonic need silver. At any price. They need it for manufacturing. It is a small but completely necessary part of the process. Once the squeeze starts and inventory dries up, you will see them contracting with miners to secure 10 year supplies. This will make the squeeze worse because some companies will be redirecting their entire supply straight to these companies. Same thing happened in uranium. Supply became uncertain and companies were willing to pay whatever it costs to stay in production. They will just raise their prices a bit.