Price of Silver with relation to Inventory

The recent Japan crisis, has caused disruptions around many markets & sectors. Some for valid reasons, while many of it was over exaggerated. It is important to understand the fundamentals, look at the facts and rather make objective rational decisions . Below we look at an amazing graph, which does show many interesting things about silver pricing  & its relation to the inventory levels . Even though classified as a precious metal, majority of the silver demand comes from its utility in the industrial sector. Henceforth whereas Gold is directional proportional to inventory levels , silver is inversely proportional.

The graph proves what we are trying to explain.Even though silver after the crash has come down from the historic high's that it was touching each day before the crisis, the inventory levels keep dropping increased with the risk of Government having to print more money ( Japan in this case , while others where obvious , and Euro Crisis), we do not see any reason for Silver to go down or stay there in the medium or long term basis. 

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