Whether you are an investor or a trader, the implications of this stark divergence between silver’s markets are massive. In Shanghai, silver is selling at an incredible $83. In stark contrast, in New York, the price per ton has dropped all the way down to about $72. This discrepancy underscores the manipulations still taking place in the precious metals market, which is prompting growing concern over misconduct from market analysts and investors.
As this all played out, silver New York was hit by what many are calling a “manufactured, low-volume paper crash.” This orchestrated decline sure looks like a cynical maneuver to punish short positions endured by long-term investors. Leading up to this crash, silver was experiencing a huge bull run up towards the $50 dollar area and eventually touching at $59. Actually, analysts had predicted prices would exceed this line in the sand. Despite this, new market entrants show signs of deliberately attempting to rattle investors with the following!
According to local media reports, it is the Western banking cartel that is driving this latest push. Now they’re going for one last grab for silver’s throat. This tactic foreshadows a larger phenomenon of silver being priced differently between U.S. and Chinese markets. The Shanghai Metals Exchange rules are draconian. These regulations do a tremendous job of stopping manipulations we’re used to seeing in U.S. markets, such as on the COMEX. The regulatory environment in Shanghai contributes to a more stable pricing landscape. By contrast, New York is under enormous volatility.
Just last month silver prices spiked by $3. This increase is occurring after a gold and silver market rally through recent overnight trading sessions. This resurgence comes amid allegations of systemic manipulation of currency and metal prices, causing skepticism about the integrity of market operations.
Ed Steer, a noted analyst in precious metals markets, commented on the current state of affairs:
“It is the most blatant act of financial warfare we have witnessed in quite some time. As you read this, the price of silver in New York is being smashed to ~$72, a manufactured, low-volume paper crash designed to steal your position. Meanwhile, on the other side of the world, the physical market in Shanghai is screaming, with silver trading at a staggering $83. This is not a spread; it is a divorce.” – Ed Steer
Steer’s comments resonate with an increasingly consensus-minded investor audience. Second, they are growing more uncomfortable with the gap between internal pricing and actual market manipulation to achieve desired outcomes. Whether that idea is true or not, the idea that financial warfare is afoot is a testament to how fraught with paranoia today’s precious metals market is.
Silver has always seen dramatic price swings—both up and down. Like a few years ago when silver first fell to $30. After intense media scrutiny on its volatility—rising and crashing, its price dropped all the way down to $20. Low prices would carry on for a number of years, spooking investors. As paper currency began to circulate, many started to wonder if their investments in silver would last through the test of time.
Today, with changing market dynamics once again in flux, some estimates have silver prices jumping to $100 or greater. These projections are based on a study of present demand patterns and geopolitical events affecting the precious metals sector. Indeed, according to October figures, central bank demand for gold was up 36% month-over-month and continues to be robust. These trends might be harbingers of a future surge in silver demand.