The manipulation of precious metal is just one of the hottest topics among bullion investors. There are others who are considering this as desperate move by bullion banks as well as other established investor groups to be able to benefit from price variations. Then again, there are those who see this as an advantage on the basis that the market is very much alive.
Defining Manipulation in the Precious Metal Market
Taking a closer look of the theory, let us figure out what exactly is the definition of manipulation in this context to have better understanding.
Price manipulation of precious metals or any other commodity for that matter is defined as an organized structure in increasing or decreasing the supply and demand of that particular metal.
In this case, silver. This method is notoriously used by traders and investors in influencing the market.
Take note that manipulation will be effective only when making short term variations in price of metal. Pushing it for long-term approach would do nothing.
Opinions Regarding Silver Price Manipulation
It’s quite popular among silver investors that the price of silver is consistently manipulated. On the other hand, there are other opinions on who is the mastermind. Some points fingers on major central banks while others think that it is being manipulated by big banks with the assistance of high frequency trading and naked shorts.
Regardless, if you are pushing to invest in silver and gold or other precious metals, make sure that you have thoroughly done your research and ready for whatever consequences that might arise.