Silver is renowned as a volatile metal and this is evident in how the price of this metal has fluctuated over the last number of years. Some investors made huge returns and others lost small fortunes while trading in silver. In recent times, gold has behaving in a similar fashion given that it has gone past the $1800 mark and then dropped again. In the meantime silver has remained fairly steady at the $38-$39 mark.
It is fair to say that during this time; silver has been a most stable performer of precious metals. It is believed that silver has two faces and they have been countering each other in recent times. Silver is in demand for its industrial value and it is considered to be valuable due to its monetary value (silver is money). Both of these demands have an effect on how the silver price behaves in the market. The reason why gold has increased in recent times is that investors are fearful of what might happen to the dollar. The America crisis has had a lot to do with this as investors have looked towards gold as a safe haven for protection. It is possible that this has caused silver to be slightly less in demand although silver market manipulation is just as rampant as ever before. That said, the movement of gold and other markets has left silver retaining its status quo for the most part. Once the anxiety in the markets relaxed slightly, gold did drop in value to a noticeable degree. Investment demand, especially from the Far and Middle East, has strengthened silver’s position in the market. Both these areas are well known as investment areas for precious metals. In these and other areas, gold is moving towards becoming out of reach for smaller investors. Smaller investors have been moving towards gold so that they can hedge their bets during these economic unsound times. Many of the smaller investors have now turned to silver and this has far reaching significance for silver demand.
The West has followed suit to some extent, although still in its baby shoes, and this has resulted in increased demand for silver in those countries as well. At the current gold and silver prices there is certainly far more demand for silver than for gold. As silver is much more affordable than gold as an investment, it is far easier for short sellers to manipulate the silver price in an already extremely tight Comex market, than the case is with gold. Silver market manipulation mostly causes downward pressure on the silver price and this is usually noticeable by collapses as was the case in early May. At the time there was a huge sale during a closed market and the price of silver tumbled considerably. Silver dropped from close to $50 an ounce right down to $34 per ounce. It is highly likely that this event has caused many investors to refrain from ever entering this market again. It is however of vital importance to follow the correct strategy and to have the correct state of mind when investing in or owning silver. Staying outside the silver market is not an option, especially if you’re looking at ways to cost-effectively protect you and your family’s wealth against the coming hyperinflation and other financial woes. The secret is to acquire or buy physical silver, to store it at home or somewhere safe and to ignore the silver price as officially quoted since it is not a reflection of silver’s true worth, especially considering the “paper gimmick” and silver market manipulation.
It is not coincidental that this type of collapse happened way back in the seventies when silver market manipulation again reared its ugly head via the Hunt brothers who attempted to take the silver market. This is despite the fact that we at the Silver Bullion website are of the firm believe that the Hunt brothers were made ‘scapegoats’ in a bid to deflect attention away from the real silver market manipulators, namely the central banks and their allies in government. By January 1980, silver had fallen to its lowest level after the spike in the seventies. This time around silver might also come down in price, but the manipulators will not be able to keep the silver price down forever. This is why it is important to acquire or buy physical silver, while it is available at dirt cheap levels, compared to its true value of closer to $100 per fine ounce and beyond.