Inventory Fraud Increases in Silver Market

By Jeff Nielson: When I first began examining supply/demand data on the silver market several years ago, I was somewhat hesitant to form conclusions, as silver (and gold) have traits which are very different than ordinary commodities - which affects supply/demand analysis. The second factor which made such analysis more difficult was that supply and demand are reported much differently than for ordinary commodities.

Generally, the supply/demand equation for a commodity is very simple: "supply" is the total amount produced, while "demand" represents consumption. When supply exceeds demand, the remainder is added to inventories, while when demand exceeds supply, the deficit must be taken from inventories.....read on