The silver market is all about sentiment. Fundamental supply and demand analysis can be an excellent tool to find clues about the path of least resistance for the prices of many commodities. An understanding of production costs around the world can lead to assumptions about times when producers will trim output because of low market prices that lead to deficits when demand outstrips short-term supplies causing prices to move to the upside. On the other side of the coin, when prices rise to levels where producers pump their volume of output, prices tend to reach