Buy Silver Now, B'coz Lot Of Manipulation Is Done By Multinational Banks All Over The World.
NEWSLETTER
Silver, Gold
The short positions of JP Morgan and HSBC are massive and manipulative (downward) but are not the only reasons the price of silver has been suppressed. The US Government as well as govts in England and Germany encouraged large banks to provide silver certificates. These certificates have been provided to those who wanted to feel the security of owning silver but did not want the risk of taking custody and not having a safe place to store. The number of certificates has for years continued to increase to meet this demand for financial security. What the owners of these certificates did not understand was that there was no physical siver underlying their purchase. The certificaates, like fiat currenty, had no precious metal backing them. The ratio of certificates to the number of ounces of available investment silver in vaults is nearly 100 to 1. Staggering isn't it but is a documented fact at a CFTC hearing. When the COMEX, the largest commodities exchange for silver, can no longer obtain silver to supply the mints for coins, the demand from hedge funds and demand from industraial corporations, all insisting on having physical silver, then the certificate fraud will be exposed. The COMEX will default. Those who have certificates will be paid fiat dollar price for them "at the time of collapse of the exchange". From there on the price of silver will skyrocket. Those who have certificates will not have the security they thought they had. They will only have dollars which be rapidly decreasing in purchasing power. For factual back-up of this information see documents and articles posted at www.GATA.ORG
Then go out and buy silver bullion, hopefully before it reaches $100/oz. Some believe, because of its physical scarcity, it will eventually be more valued than gold.
Second Story :
If they are buying silver, it is because of this:
The above is the history of the ratio of the price of gold to the price of silver. As one can see, this ratio is well above average.
However, as one can also see, there is no long term stable average.
Maybe the ratio will drop. Maybe it won’t.
Unless one has a deep understanding of what drives the prices of precious metals and specifically these two metals.
Your response is private
Was this worth your time?
Third Story:
As with any investment, if the only reason you are looking to buy something is because of what someone else is doing, your best bet is probably not to bother. Come this time next year you might be kicking yourself because silver is at $85 and you turned down the chance to buy in at more like $15. On the other hand you could be really thankful that you didn’t buy at $15 because it’s down to $2.
As to whether it’s a good time to buy silver, that’s not something you should be asking strangers. You have no way of knowing whether people here know what they are talking about, have an undisclosed vested interest or whatever else. Do your research and own your decisions.
Do you think that this is a good time to buy silver? Does this have to do with the silver /gold ratio which is at a high of 80?
I suspect you are looking at a chart like the one below:
This shows the number of ounce of silver you can buy with an ounce of gold on the horizontal axis, and the subsequent month’s return holding silver on the vertical axis. It appears to show that you make money holding silver on average when the ratio is high—above 75—and lose money on average when the ratio is low—below 60. The red line is a regression line.
But there is a fallacy in looking at that graph, one that is common in investment patterns. It’s easier to illustrate if we forget about gold for a moment and just look at the return on silver versus the price of silver:
It appears that you make money buying silver when it’s cheap—under $15/ounce—and lose money buying silver when it is expensive—over $22/ounce. But this is a necessary consequence of the fact that silver traded in the range $13 to $32 over the period. When it got near $13 it had nowhere to go but up, when it got near $32 it had nowhere to go but down. You notice in the middle of the graph, from around $15 to $22, there is no pattern to the returns.
Unless you have some strong economic reason to think silver could not have gone below $13 or above $32, it’s foolish to use this chart to predict the future. Sure, the last dip in silver ended around $13, but the next dip could end around $5 or any other number. The last peak fizzled at $32, but the next one could go to $100.
Every chart of subsequent return versus price of anything will show positive returns at the lower range and negative returns at the higher range. It’s a necessary consequence of data, not an economic limit you can rely upon for future prediction.
The first graph showing gold price over silver price is driven by the same effect. When the ratio is near its high—meaning silver prices are low—it has to go down—meaning silver is likely to increase. This would be true regardless of whether there is any economics driving the relation.
So throw out the chart and ask yourself are there any economic reasons that silver should go up in the future? The relation of silver to gold is complex. Gold responds mainly to financial and social turmoil in the world. When people lose confidence in banks, or government currencies or rule of law, a bar of gold is more appealing than a bank account; especially for wealthy people in troubled regions. The rest of the time it’s just an asset that’s expensive to store and generates no economic profits. Its use value is far below its cost.
Silver can fulfill the same function, mainly for less wealthy people (you can carry $1 million of gold on your back hiking across the border at midnight, but only about $10,000 of silver). But it also has significant use value. So when times are good, silver is valued for use, and gold has less that its average value. When recession hits, silver’s use value goes down, while gold gets a little boost. If things seems moving toward crisis, gold goes up, and silver continues down. If they get really bad, gold continues up and silver starts getting pulled with it.
The high ratio of gold price to silver price suggests a world with a lot of worried rich people and a so-so economy, but in which crisis fears have not risen to the level that the demand for portable, anonymous, hard assets has risen to the level or affected enough less-wealthy people to create a strong demand for silver.
If you accept that scenario and think things will get worse, it makes sense to buy gold. If you think they’ll get better, it makes sense to buy stocks. Buying silver is a hedged bet. It should do well in a full-fledged crisis, but perhaps not as well as gold, but could also do well if things get better and economies boom. On the other hand, it could suffer if things continue on more or less has they have.
None of that is anything close to investment advice. Anyone thinking of buying silver should do a much deeper analysis into silver production, use and behavior in plausible future scenarios. I’m just illustrating the kinds of things you should be thinking about instead of looking at charts based on statistical data.
Does JP Morgan have a large short position in silver and has that been the primary reason for silver's lack of movement until recent?
The short positions of JP Morgan and HSBC are massive and manipulative (downward) but are not the only reasons the price of silver has been suppressed. The US Government as well as govts in England and Germany encouraged large banks to provide silver certificates. These certificates have been provided to those who wanted to feel the security of owning silver but did not want the risk of taking custody and not having a safe place to store. The number of certificates has for years continued to increase to meet this demand for financial security. What the owners of these certificates did not understand was that there was no physical siver underlying their purchase. The certificaates, like fiat currenty, had no precious metal backing them. The ratio of certificates to the number of ounces of available investment silver in vaults is nearly 100 to 1. Staggering isn't it but is a documented fact at a CFTC hearing. When the COMEX, the largest commodities exchange for silver, can no longer obtain silver to supply the mints for coins, the demand from hedge funds and demand from industraial corporations, all insisting on having physical silver, then the certificate fraud will be exposed. The COMEX will default. Those who have certificates will be paid fiat dollar price for them "at the time of collapse of the exchange". From there on the price of silver will skyrocket. Those who have certificates will not have the security they thought they had. They will only have dollars which be rapidly decreasing in purchasing power. For factual back-up of this information see documents and articles posted at www.GATA.ORG
Then go out and buy silver bullion, hopefully before it reaches $100/oz. Some believe, because of its physical scarcity, it will eventually be more valued.
Originally Answered: Why is JP Morgan hoarding silver and what’s the true price of silver?
Silver prices move with gold. No one knows the true price of silver during a crisis. Only without a crisis can you truly price the silver with gold.
Over the past year, gold has risen by 20%, but silver has outshined with a 30% increase!
Looking at the past three years, gold has given an 8% annual return, while silver has delivered a whopping 20% per annum.
So, what's driving this surge in silver's value? There are two main reasons:
Industrial Demand: The use of silver in new technologies is skyrocketing. Think EVs, hydropower, and 5G towers.
There's just not enough silver to meet this growing demand.
Arbitrage Opportunity: In India, silver prices are currently 4-5% lower than global prices, creating a perfect arbitrage opportunity.
This is likely to drive prices up over the next 2-3 years unless there's a major technological change.
Historically, silver has been a volatile investment, sometimes not rising for 8-10 years. But I'm bullish on silver for the next two years.
How should you invest? Skip physical silver and go for silver ETFs. They are a smarter choice.
Is silver a good investment long term?
Lets look at the fundamentals of silver:
Total production of silver in 2017 was 28000 metric tonne or 1 billion ounce(both are same).
Now ,if we look at the consumption in 2017 out of 28000 metric tonne:
20% :jewellery
20% :coins & bars
5% :in silverware
23% :electricals & electronics(industrial)
5.5%:brazing alloys and solders(industrial)
5% :photography(industrial)
7% :photovoltaic(industrial)
14.5%:other industrial
Considering the above stats,55% is used by industrials,25% by jewellery & silverware & the rest 20% as investments. So silver is not solely based on investments like gold.
Currently gold is trading at about 1300$/ounce while silver is trading at about 17$/ounce.So the current GOLD TO SILVER RATIO comes up to 80:1(1300/17).These are historic lows for silver. It has never traded below 90:1 (that too in 90’s)and that too for a very brief period.
Big institutional players who have a great control over the silver market are not letting it go up,but once it starts one can expect a GOLD TO SILVER RATIO of 50:1.
Moreover, there is nothing to lose in silver at these levels.. Start Investing.
Silver, Gold
The short positions of JP Morgan and HSBC are massive and manipulative (downward) but are not the only reasons the price of silver has been suppressed. The US Government as well as govts in England and Germany encouraged large banks to provide silver certificates. These certificates have been provided to those who wanted to feel the security of owning silver but did not want the risk of taking custody and not having a safe place to store. The number of certificates has for years continued to increase to meet this demand for financial security. What the owners of these certificates did not understand was that there was no physical siver underlying their purchase. The certificaates, like fiat currenty, had no precious metal backing them. The ratio of certificates to the number of ounces of available investment silver in vaults is nearly 100 to 1. Staggering isn't it but is a documented fact at a CFTC hearing. When the COMEX, the largest commodities exchange for silver, can no longer obtain silver to supply the mints for coins, the demand from hedge funds and demand from industraial corporations, all insisting on having physical silver, then the certificate fraud will be exposed. The COMEX will default. Those who have certificates will be paid fiat dollar price for them "at the time of collapse of the exchange". From there on the price of silver will skyrocket. Those who have certificates will not have the security they thought they had. They will only have dollars which be rapidly decreasing in purchasing power. For factual back-up of this information see documents and articles posted at www.GATA.ORG
Then go out and buy silver bullion, hopefully before it reaches $100/oz. Some believe, because of its physical scarcity, it will eventually be more valued than gold.
Second Story :
If they are buying silver, it is because of this:
The above is the history of the ratio of the price of gold to the price of silver. As one can see, this ratio is well above average.
However, as one can also see, there is no long term stable average.
Maybe the ratio will drop. Maybe it won’t.
Unless one has a deep understanding of what drives the prices of precious metals and specifically these two metals.
Your response is private
Was this worth your time?
Third Story:
As with any investment, if the only reason you are looking to buy something is because of what someone else is doing, your best bet is probably not to bother. Come this time next year you might be kicking yourself because silver is at $85 and you turned down the chance to buy in at more like $15. On the other hand you could be really thankful that you didn’t buy at $15 because it’s down to $2.
As to whether it’s a good time to buy silver, that’s not something you should be asking strangers. You have no way of knowing whether people here know what they are talking about, have an undisclosed vested interest or whatever else. Do your research and own your decisions.
Do you think that this is a good time to buy silver? Does this have to do with the silver /gold ratio which is at a high of 80?
I suspect you are looking at a chart like the one below:
This shows the number of ounce of silver you can buy with an ounce of gold on the horizontal axis, and the subsequent month’s return holding silver on the vertical axis. It appears to show that you make money holding silver on average when the ratio is high—above 75—and lose money on average when the ratio is low—below 60. The red line is a regression line.
But there is a fallacy in looking at that graph, one that is common in investment patterns. It’s easier to illustrate if we forget about gold for a moment and just look at the return on silver versus the price of silver:
It appears that you make money buying silver when it’s cheap—under $15/ounce—and lose money buying silver when it is expensive—over $22/ounce. But this is a necessary consequence of the fact that silver traded in the range $13 to $32 over the period. When it got near $13 it had nowhere to go but up, when it got near $32 it had nowhere to go but down. You notice in the middle of the graph, from around $15 to $22, there is no pattern to the returns.
Unless you have some strong economic reason to think silver could not have gone below $13 or above $32, it’s foolish to use this chart to predict the future. Sure, the last dip in silver ended around $13, but the next dip could end around $5 or any other number. The last peak fizzled at $32, but the next one could go to $100.
Every chart of subsequent return versus price of anything will show positive returns at the lower range and negative returns at the higher range. It’s a necessary consequence of data, not an economic limit you can rely upon for future prediction.
The first graph showing gold price over silver price is driven by the same effect. When the ratio is near its high—meaning silver prices are low—it has to go down—meaning silver is likely to increase. This would be true regardless of whether there is any economics driving the relation.
So throw out the chart and ask yourself are there any economic reasons that silver should go up in the future? The relation of silver to gold is complex. Gold responds mainly to financial and social turmoil in the world. When people lose confidence in banks, or government currencies or rule of law, a bar of gold is more appealing than a bank account; especially for wealthy people in troubled regions. The rest of the time it’s just an asset that’s expensive to store and generates no economic profits. Its use value is far below its cost.
Silver can fulfill the same function, mainly for less wealthy people (you can carry $1 million of gold on your back hiking across the border at midnight, but only about $10,000 of silver). But it also has significant use value. So when times are good, silver is valued for use, and gold has less that its average value. When recession hits, silver’s use value goes down, while gold gets a little boost. If things seems moving toward crisis, gold goes up, and silver continues down. If they get really bad, gold continues up and silver starts getting pulled with it.
The high ratio of gold price to silver price suggests a world with a lot of worried rich people and a so-so economy, but in which crisis fears have not risen to the level that the demand for portable, anonymous, hard assets has risen to the level or affected enough less-wealthy people to create a strong demand for silver.
If you accept that scenario and think things will get worse, it makes sense to buy gold. If you think they’ll get better, it makes sense to buy stocks. Buying silver is a hedged bet. It should do well in a full-fledged crisis, but perhaps not as well as gold, but could also do well if things get better and economies boom. On the other hand, it could suffer if things continue on more or less has they have.
None of that is anything close to investment advice. Anyone thinking of buying silver should do a much deeper analysis into silver production, use and behavior in plausible future scenarios. I’m just illustrating the kinds of things you should be thinking about instead of looking at charts based on statistical data.
Does JP Morgan have a large short position in silver and has that been the primary reason for silver's lack of movement until recent?
The short positions of JP Morgan and HSBC are massive and manipulative (downward) but are not the only reasons the price of silver has been suppressed. The US Government as well as govts in England and Germany encouraged large banks to provide silver certificates. These certificates have been provided to those who wanted to feel the security of owning silver but did not want the risk of taking custody and not having a safe place to store. The number of certificates has for years continued to increase to meet this demand for financial security. What the owners of these certificates did not understand was that there was no physical siver underlying their purchase. The certificaates, like fiat currenty, had no precious metal backing them. The ratio of certificates to the number of ounces of available investment silver in vaults is nearly 100 to 1. Staggering isn't it but is a documented fact at a CFTC hearing. When the COMEX, the largest commodities exchange for silver, can no longer obtain silver to supply the mints for coins, the demand from hedge funds and demand from industraial corporations, all insisting on having physical silver, then the certificate fraud will be exposed. The COMEX will default. Those who have certificates will be paid fiat dollar price for them "at the time of collapse of the exchange". From there on the price of silver will skyrocket. Those who have certificates will not have the security they thought they had. They will only have dollars which be rapidly decreasing in purchasing power. For factual back-up of this information see documents and articles posted at www.GATA.ORG
Then go out and buy silver bullion, hopefully before it reaches $100/oz. Some believe, because of its physical scarcity, it will eventually be more valued.
Originally Answered: Why is JP Morgan hoarding silver and what’s the true price of silver?
Silver prices move with gold. No one knows the true price of silver during a crisis. Only without a crisis can you truly price the silver with gold.
Over the past year, gold has risen by 20%, but silver has outshined with a 30% increase!
Looking at the past three years, gold has given an 8% annual return, while silver has delivered a whopping 20% per annum.
So, what's driving this surge in silver's value? There are two main reasons:
Industrial Demand: The use of silver in new technologies is skyrocketing. Think EVs, hydropower, and 5G towers.
There's just not enough silver to meet this growing demand.
Arbitrage Opportunity: In India, silver prices are currently 4-5% lower than global prices, creating a perfect arbitrage opportunity.
This is likely to drive prices up over the next 2-3 years unless there's a major technological change.
Historically, silver has been a volatile investment, sometimes not rising for 8-10 years. But I'm bullish on silver for the next two years.
How should you invest? Skip physical silver and go for silver ETFs. They are a smarter choice.
Is silver a good investment long term?
Lets look at the fundamentals of silver:
Total production of silver in 2017 was 28000 metric tonne or 1 billion ounce(both are same).
Now ,if we look at the consumption in 2017 out of 28000 metric tonne:
20% :jewellery
20% :coins & bars
5% :in silverware
23% :electricals & electronics(industrial)
5.5%:brazing alloys and solders(industrial)
5% :photography(industrial)
7% :photovoltaic(industrial)
14.5%:other industrial
Considering the above stats,55% is used by industrials,25% by jewellery & silverware & the rest 20% as investments. So silver is not solely based on investments like gold.
Currently gold is trading at about 1300$/ounce while silver is trading at about 17$/ounce.So the current GOLD TO SILVER RATIO comes up to 80:1(1300/17).These are historic lows for silver. It has never traded below 90:1 (that too in 90’s)and that too for a very brief period.
Big institutional players who have a great control over the silver market are not letting it go up,but once it starts one can expect a GOLD TO SILVER RATIO of 50:1.
Moreover, there is nothing to lose in silver at these levels.. Start Investing.
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