One of the main motivators for investing in silver centers on the fact that silver prices are sure to increase—in a big way.The big question is not whether silver prices will rise, but when. It may not take place this week or even this year, but it is certainly inevitable and will likely come soon. This dramatic increase in price will make any investment in silver, no matter how small or large, look unbelievable. Here's a quick peek at the silver price history. One of the main motivators for investing in silver centers is the fact that silver spot prices are sure to increase—in a big way. ![[Live Silver]](http://www.kitco.com/images/live/silver.gif)
The big question is not whether the silver price today will rise, but what happens long-term. Perhaps the price explosion will not take place this week or even this year, but it is certainly inevitable and will likely come soon. This dramatic increase in price will make any investment in silver, no matter how small or large, look unbelievable. Rarely does an investment opportunity present itself that has this kind of profit potential. Following are a few of the reasons that silver prices are sure to take off.
Price Manipulation
There is much evidence that the current silver prices and other precious metals have long been manipulated and coordinated in order to keep markets and there derivatives stable. Official investigations by the CFTC continue to this day.
Officials face a major dilemma. Fear that letting prices settle based on physical supply and demand would create a panic, jeopardizing the greater financial markets.
A few large bullion banks with particularly strong influence over politics and monetary policy (they actually represent the Federal Reserve) continually overwhelm the long traders on the futures market by accumulating short positions as the price rises.
Click here for the silver price today.
The amount of "short" or paper silver far exceeds the actual amount of silver by close to a year's worth of mine production. While this type of short selling exists in other markets, it is unprecedented and extreme in silver.
Dwindling Supply
Supply and demand fundamentals alone could trigger an explosion in silver prices.Silver supply is short and demand continues to grow. This production deficit is well documented.
For more a more in-depth overview of silver supply characteristics and silver prices, click here.
Early 2008 experienced the first significant physical shortage on the retail market—a sign of things to come. The U.S. Mint has begun rationing silver eagles. In early 2010, the U.S. Mint recorded record sales of silver eagles, despite the continuing egregious downward price manipulation. (Recent developments at the CFTC threaten to impact current silver prices even further).
Click here for more about silver supply depletion.
Demand will continue, even in the face of flat economic growth, in part because of the emergence of new economies (BRIC countries), but also because silver plays an ever-present role in the manufacture of a vast array of consumer products that, even in the face of an economic slowdown, will continue to be necessary. Of course, more and more people are becoming aware of gold and silver prices as the economy shifts from West to East, diminishing other investment opportunities, while leaving behind the serious potential for major inflation or even hyperinflation.
Silver is Money
Regardless of how disconnected this idea has become from modern society, silver has always been and will always continue to be a form of money.It is entirely possible that the continued fall of the dollar could eventually spark a black market in alternative currencies, where gold and silver would be used for barter or in place of dollars.
Strong Dollar Policy
It’s not difficult to imagine a fledgling hedge fund or new speculative investor creating a substantial position in the silver market. Silver prices are cheap, it is easy to store, and as discussed above, silver is an asset that can never go to zero.
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The "strong dollar" policy, which includes manipulation of the gold market, disconnected the inflation alarm system. This made the dollar artificially strong, which, in turn, depressed all commodity prices including and allowed the U.S. to have all the cheap raw materials it needed.Another reason to be skeptical of the silver price today. This suppression of commodity prices also had the effect of stifling any investment which would have led to the increase in supply of those same commodities. The U.S. Government, the FED and the Cartel of U.S. Banks created the problem by trying to economically colonize the world, keeping the concentration of wealth in the hands of the few. This scheme is now falling apart as the dollar descends to its intrinsic value. Further reading:
The Real Price of Silver Coins
Current Silver Prices: Four Reasons They Will Rise in Good and Bad Times
Silver Prices Per Ounce And The Many Reasons to Bank on Silver
How High Will Gold Silver Spot Prices Go?
Silver Commodity Prices: Don't Listen To The Analysts
Read more about current silver prices here.
More on silver prices today and where they are headed, click here.
High silver prices per ounce are practically guaranteed.
About current silver prices and the inevitable rise in price, despite economic conditions.
Click here for the page about general bullion and silver coin value.
More perspective on silver coin values here.
On silver metal prices when compared with gold.
Will The Real Price Of A Silver Coin Ever Be Realized?
Current Silver Prices and the CFTC Effect
Current Silver Prices And Premium Flux
On The Gold Silver Ratio Here
Current Silver Prices: Overlooked and Undervalued
How to Benefit From Silver As Gold Prices Rise
Silver Prices Per Ounce, Bank Reserves, And The Many Reasons to Bank on Silver
Current Silver Prices: Four Reasons Why Silver Shines in Good and Bad Economic Times
Silver Prices Today: 3 Reasons Why Inflation Will Not Be Stopped
Current Silver Prices and Premiums: Evidence of Silver Manipulation?
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