This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Silver Is Being Manipulated, Platinum Is Not

NEW YORK ( Bullion Bulls Canada) -- Observant precious metals investors would have recently noticed a rare -- almost unheard of -- occurrence: A bullion market where prices actually respond to supply/demand fundamentals. No, obviously I'm not referring to either the gold or silver market, but rather the platinum market.

Analysis was provided by a mining Web site . Unlike the pseudo-analytic drivel spewed by the mainstream media concerning commodity markets, this featured long-term, hard data and cogent reasoning -- vs. the short-term trivia, empty rhetoric and fear-mongering we generally get from the corporate media.

Specifically, the article noted that recycling in the platinum market had quadrupled over the last decade. Compounding that bearish supply factor, industrial demand has softened considerably, and even jewelry demand has been shown to be more price-sensitive than previously thought.

The combination of these factors has meant that platinum inventories are abundant, and with weak supply/demand fundamentals and abundant inventories, prices have floundered. The price of platinum is now trading below the price of gold (a very unusual situation).

With a concrete example illustrating both supply/demand fundamentals and how markets are supposed to respond to those fundamental, the extreme/serial manipulation of the silver market appears even more blatant in comparison. Now let's look at the "fundamentals" in the silver market.

We can begin by looking at the absurdly low, current price of silver. This artificial/suppressed/manipulated price can be illustrated in several different ways. Relative to the price of gold, silver is priced at less than 1/3 of its historic average.

During the nearly 5,000 years in which humanity has been mining/refining gold and silver, the gold/silver price ratio has averaged roughly 15:1. Yet currently (and through all the recent decades of silver manipulation) this ratio has been depressed to 50:1 (or lower).

We know that this is a case of silver being underpriced rather than gold being overpriced, through simply examining the supply side of the gold and silver markets: The miners . Gold and silver miners are experiencing their second "depression" in five years, as the radical underpricing of silver and gold has made it difficult for established miners to raise capital, and nearly impossible for the junior exploration companies, who are the life-blood of the mining industry, to do so.
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $121.30 0.00%
FB $94.01 0.00%
GOOG $625.61 0.00%
TSLA $266.15 0.00%
YHOO $36.67 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs