Why did silver prices go down this week?
This is always the biggest question people ask. Why did the price of silver; or gold; go down? They never ask: "Why did the price go up"? In theory, the price of silver and gold, after the announcement of QE4 on Wednesday, should have started to climb a lot more. At first, the price did go up considerably. But by the end of the day, it started going back down. Within 2 days, it's at a lower price than it was prior to the announcement of QE4. Now, that doesn't make sense, does it. If Quantitative easing normally means a weaker dollar; then by it's very nature, silver and gold should have gone up. And it tried to. So...... what happened.
Well, this all goes back to the price of silver and gold being manipulated. It's being manipulated by many different people/entities. This is not a conspiracy theory. Do a simple google search on silver and gold price manipulation and you will find every possible article. Many written by some of the most respected economists and financial advisers in the world. So no, I won't debate with anyone that the price of these metals are being manipulated. So why is it being manipulated and what does that mean for me the silver investor? Excellent questions.
Until only a few years ago, silver and gold was bought and solve solely from a physical position. You bought an ounce of silver or gold, and you took possession of an ounce of physical silver or gold. In some cases, you hired a firm to physically store it for you, but you physically owned it. Then came the ETF's, IRA's, and other PAPER silver and gold. Instead of a small minority of people buying and selling silver and gold, it's not an avenue for many more people to buy. But to do that, you need to keep the price affordable. So this is the first part of manipulation. Just like a stock, if it looks like the price is going to go up, you make large sales quickly, and this makes the price drop. By being able to instantly buy and sell "Paper" silver/gold, you can more easily affect the price of the silver/gold. Especially if you own a lot of the paper. The problem is, if the truth were known, people would realize that there isn't enough physical silver/gold to cover all of the "paper" silver/gold being sold. Especially if it was at the price the true value is.
Another thing to remember is that silver and gold are usually transversely proportionate to the value of the U.S. Dollar. As I've said before, silver and gold don't change value. It's the dollar that changes value and what you can buy with the dollar. The last thing the Federal Reserve wants is for the dollar to get any weaker than it currently is. They prop up the dollar by weakening silver and gold. Especially in today's economy, it's important that the dollar be seen as strong. If it becomes too weak, then the risk of it not being the reserve currency is also in jeopardy.
There's also companies like J.P. Morgan and countries like china who want to sell paper silver/gold short and keep the prices down, so that they can accumulate MORE silver/gold. (In the PHYSICAL FORM). This is why I believe you should be buying silver. And this goes right into part 2 of the earlier question of how does this manipulation affect me/you the silver investor?
If you think of silver/gold like a stock in the stock market, then you might be scared watching the prices go down. But silver/gold isn't like the market. Silver/gold are "COMMODITIES". In other words, they are physically something real that has intrinsic value. Unlike other commodities like wheat, corn, pork, etc..., silver and gold aren't perishable. The truth is; J.P Morgan and similar investors are very SHORT on paper silver/gold, but they are LONG on PHYSICAL silver/gold. These people aren't stupid. They know that the time is going to come when the U.S. dollar will no longer influence the price of silver and gold. They know that the paper silver/gold can only be covered by physical gold if it "Splits". Basically, the paper silver/gold is owned in dollar amounts; not ounces. So, in order to cover the dollar amount, they'll have to make smaller increments of silver/gold worth more to cover the dollar amount. This is going to make the actual physical silver/gold worth much more. Here are a couple of stories you really should read.
http://www.silverdoctors.com/is-jp-morgan-shorting-paper-metals-while-acquiring-massive-physical-stockpiles-of-gold-silver/
http://lewrockwell.com/casey/casey121.html
http://www.zerohedge.com/news/fed-gold-price-manipulation
So why should you be buying silver? Here are my bullet reasons.
1. Silver and gold's prices have been manipulated to keep them low. The price has to catch up.
2. There use to be 10X More silver than gold. Now, there's 5X More GOLD than silver. Silver can rarely be reclaimed in a profitable manner. In other words, the demand keeps going up, but the supply keeps going down.
3. There's only about 1 Billion ounces of silver above ground right now. That sounds like a lot, but assuming you gave it ALL to the United States of America, each citizen would only have about 3 ounces of silver!!!!! World wide, there are approximately 7 billion people. That means each person would get about 1/7 of an ounce.
Point is; physical silver is going to have a lot more value than it does now. Demand for industrial will continue to go up. That is going to make the price go up. Eventually, the price will not be able to be manipulated the way it currently is. Eventually, paper silver owners are going to demand some sort of exchange for physical silver. Currently, most brokers don't provide physical, but there are more and more investment agencies advertising PHYSICAL silver/gold investments. That means the physical is going to become much more valuable. I wouldn't be surprised to see 2 separate investments. Paper Silver/gold and Physical Silver/gold.
Remember; I've always said that I am not a stacker. I don't buy silver to stack and hoard. I'm not buying for retirement or because I think the end of the economy and world are coming. I buy silver to get a higher return on my fiat currency I bought it with, so I can lower/reduce debt and to purchase goods and services at a discount. But that's not to say that I can't have "Some" silver set aside specifically for the purpose of "If I'm Wrong" and the economy and the dollar does totally shit the bed. That's why I buy the 90% silver pre-1964 coins. Those are specifically for the purpose of having very small pieces of silver that can be used to purchase common low cost items if there is an economic melt down. Then again, if there's a complete economic melt down, guns & ammo will also be a very good investment. As will any skills and services you can provide as a means for bartering.
But strictly from a silver stand-point, I, as well as many economists and investment professionals see silver and gold prices going up. The Fed, JP Morgan, White House, etc... may want to manipulate the true value of silver and gold so as to not cause panic and totally crush the U.S. Dollar and economy; but the dollar isn't the only thing that affects the price of silver/gold. And therefor, some of these other factors are going to kick in and allow the prices to move towards where they should be. Don't go broke buying silver. Make sure that all your immediate debt line credit cards and car loans are paid off first. Become debt free other than your mortgage. THEN you can buy silver. Start with about $50-$100 face value of 90% pre-1965 silver coins. This is your SHTF money. FWIW: $100 face value comes out to about 71.5 ounces of silver. Much more in that alone than the average person is ever going to have. This will cost you about $2500 currently. $1250 if you have $50 of face value. Then, start buying silver for purposes like I mentioned in my previous posts. To reduce debt and to buy at a discount. Have fun. Chat again soon. CYA:SE
This is always the biggest question people ask. Why did the price of silver; or gold; go down? They never ask: "Why did the price go up"? In theory, the price of silver and gold, after the announcement of QE4 on Wednesday, should have started to climb a lot more. At first, the price did go up considerably. But by the end of the day, it started going back down. Within 2 days, it's at a lower price than it was prior to the announcement of QE4. Now, that doesn't make sense, does it. If Quantitative easing normally means a weaker dollar; then by it's very nature, silver and gold should have gone up. And it tried to. So...... what happened.
Well, this all goes back to the price of silver and gold being manipulated. It's being manipulated by many different people/entities. This is not a conspiracy theory. Do a simple google search on silver and gold price manipulation and you will find every possible article. Many written by some of the most respected economists and financial advisers in the world. So no, I won't debate with anyone that the price of these metals are being manipulated. So why is it being manipulated and what does that mean for me the silver investor? Excellent questions.
Until only a few years ago, silver and gold was bought and solve solely from a physical position. You bought an ounce of silver or gold, and you took possession of an ounce of physical silver or gold. In some cases, you hired a firm to physically store it for you, but you physically owned it. Then came the ETF's, IRA's, and other PAPER silver and gold. Instead of a small minority of people buying and selling silver and gold, it's not an avenue for many more people to buy. But to do that, you need to keep the price affordable. So this is the first part of manipulation. Just like a stock, if it looks like the price is going to go up, you make large sales quickly, and this makes the price drop. By being able to instantly buy and sell "Paper" silver/gold, you can more easily affect the price of the silver/gold. Especially if you own a lot of the paper. The problem is, if the truth were known, people would realize that there isn't enough physical silver/gold to cover all of the "paper" silver/gold being sold. Especially if it was at the price the true value is.
Another thing to remember is that silver and gold are usually transversely proportionate to the value of the U.S. Dollar. As I've said before, silver and gold don't change value. It's the dollar that changes value and what you can buy with the dollar. The last thing the Federal Reserve wants is for the dollar to get any weaker than it currently is. They prop up the dollar by weakening silver and gold. Especially in today's economy, it's important that the dollar be seen as strong. If it becomes too weak, then the risk of it not being the reserve currency is also in jeopardy.
There's also companies like J.P. Morgan and countries like china who want to sell paper silver/gold short and keep the prices down, so that they can accumulate MORE silver/gold. (In the PHYSICAL FORM). This is why I believe you should be buying silver. And this goes right into part 2 of the earlier question of how does this manipulation affect me/you the silver investor?
If you think of silver/gold like a stock in the stock market, then you might be scared watching the prices go down. But silver/gold isn't like the market. Silver/gold are "COMMODITIES". In other words, they are physically something real that has intrinsic value. Unlike other commodities like wheat, corn, pork, etc..., silver and gold aren't perishable. The truth is; J.P Morgan and similar investors are very SHORT on paper silver/gold, but they are LONG on PHYSICAL silver/gold. These people aren't stupid. They know that the time is going to come when the U.S. dollar will no longer influence the price of silver and gold. They know that the paper silver/gold can only be covered by physical gold if it "Splits". Basically, the paper silver/gold is owned in dollar amounts; not ounces. So, in order to cover the dollar amount, they'll have to make smaller increments of silver/gold worth more to cover the dollar amount. This is going to make the actual physical silver/gold worth much more. Here are a couple of stories you really should read.
http://www.silverdoctors.com/is-jp-morgan-shorting-paper-metals-while-acquiring-massive-physical-stockpiles-of-gold-silver/
http://lewrockwell.com/casey/casey121.html
http://www.zerohedge.com/news/fed-gold-price-manipulation
So why should you be buying silver? Here are my bullet reasons.
1. Silver and gold's prices have been manipulated to keep them low. The price has to catch up.
2. There use to be 10X More silver than gold. Now, there's 5X More GOLD than silver. Silver can rarely be reclaimed in a profitable manner. In other words, the demand keeps going up, but the supply keeps going down.
3. There's only about 1 Billion ounces of silver above ground right now. That sounds like a lot, but assuming you gave it ALL to the United States of America, each citizen would only have about 3 ounces of silver!!!!! World wide, there are approximately 7 billion people. That means each person would get about 1/7 of an ounce.
Point is; physical silver is going to have a lot more value than it does now. Demand for industrial will continue to go up. That is going to make the price go up. Eventually, the price will not be able to be manipulated the way it currently is. Eventually, paper silver owners are going to demand some sort of exchange for physical silver. Currently, most brokers don't provide physical, but there are more and more investment agencies advertising PHYSICAL silver/gold investments. That means the physical is going to become much more valuable. I wouldn't be surprised to see 2 separate investments. Paper Silver/gold and Physical Silver/gold.
Remember; I've always said that I am not a stacker. I don't buy silver to stack and hoard. I'm not buying for retirement or because I think the end of the economy and world are coming. I buy silver to get a higher return on my fiat currency I bought it with, so I can lower/reduce debt and to purchase goods and services at a discount. But that's not to say that I can't have "Some" silver set aside specifically for the purpose of "If I'm Wrong" and the economy and the dollar does totally shit the bed. That's why I buy the 90% silver pre-1964 coins. Those are specifically for the purpose of having very small pieces of silver that can be used to purchase common low cost items if there is an economic melt down. Then again, if there's a complete economic melt down, guns & ammo will also be a very good investment. As will any skills and services you can provide as a means for bartering.
But strictly from a silver stand-point, I, as well as many economists and investment professionals see silver and gold prices going up. The Fed, JP Morgan, White House, etc... may want to manipulate the true value of silver and gold so as to not cause panic and totally crush the U.S. Dollar and economy; but the dollar isn't the only thing that affects the price of silver/gold. And therefor, some of these other factors are going to kick in and allow the prices to move towards where they should be. Don't go broke buying silver. Make sure that all your immediate debt line credit cards and car loans are paid off first. Become debt free other than your mortgage. THEN you can buy silver. Start with about $50-$100 face value of 90% pre-1965 silver coins. This is your SHTF money. FWIW: $100 face value comes out to about 71.5 ounces of silver. Much more in that alone than the average person is ever going to have. This will cost you about $2500 currently. $1250 if you have $50 of face value. Then, start buying silver for purposes like I mentioned in my previous posts. To reduce debt and to buy at a discount. Have fun. Chat again soon. CYA:SE
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