Let the numbers do the talking…
The numbers just do not add up. Left to supply and demand forces in a free market, silver should be many multiples over its current price, and possible worth even more than gold.
Over an above all these, silver is being consumed as an indispensable industrial metal withrapidly increasing demand while almost every ounce of gold ever mined in history is still in a vault somewhere.
Reason for this heavily suppressed price is because silver has been, and still is a monetary metal, and hence the Political Metal concept comes into play – just like gold, only more extreme. If the price of silver were “allowed” to rise according to market forces, it will pull up the price of gold because they’re both monetary metals. Silver has the largest concentrated short position all “commodities” traded on the Comex. Investigate the silver manipulation story here and here.
Shortly after the March 2010 CFTC public hearing on silver position limits, the whistle blower Andrew Maguire news going viral on the web, and a slew of high profile class action suits filed against JPMorgan and HSBC for their alleged silver price suppression schemes, silver investors have been getting out of paper silver and going physical. This is accelerating the silver shortage in the physical market and the bankers have been fighting a loosing battle, resulting in a steep price increase from July 2010 as reflected in the charts above.
We’re waiting for them to loose the war, which many expect it to be soon. In the meantime, expect extreme volatility in the silver market. You have to understand the dynamics of the volatility and learn to manage them.