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short answer if possible please


craig12

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hi everyone , I asked this question over on ss  and the majority of the answers were way over my head ,  as there showing charts, taking averages, mining costs, $ in aus  $ in us  paper trading , etc etc

can ayone tell me please in the simplist way or short sentences

 

what caused silver to rise to $46

and what caused it to come back down to $19

 

the short answers I will understrand much easier  

thanks   craig

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Silver rose to $48 in 1980, because two brothers tried to corner the silver market, buying everything they could lay their hands on.

It went to over $100 in 1980.

I think Craig is referring to the recent run to near ÂŁ30.

Stacker since 2013

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I'm not sure what charts you've been looking at but the historical all time dollar high was on the 18th Jan 1980, at $49.45

Apologies, I was looking at the inflation adjusted value from this chart, my mistake.

a7uhygun.jpg

Stacker since 2013

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The latest highs were all down to market manipulation by the comex market, they trade a reported 300oz of paper silver to 1oz of physical, so the enables them to buy up the silver causing a rise or flood the market causing a fall.

They can basically push it where ever they want through false supply and demand via the corrupt paper market.

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The latest highs were all down to market manipulation by the comex market, they trade a reported 300oz of paper silver to 1oz of physical, so the enables them to buy up the silver causing a rise or flood the market causing a fall.

They can basically push it where ever they want through false supply and demand via the corrupt paper market.

And I assume this will continue until thousands of people demand the physical from the paper, which is unlikely to happen?

Stacker since 2013

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And I assume this will continue until thousands of people demand the physical from the paper, which is unlikely to happen?

 

Yeah it seems like the paper market's just a betting game, I don't think anyone involved's actually interested in delivery of the physical silver or gold.

 

But they will lose control when the physical really does dry up, when industry orders silver and it doesn't show up or when investors can't get hold of bullion they want, that's when we see the real price of silver.

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Yeah it seems like the paper market's just a betting game, I don't think anyone involved's actually interested in delivery of the physical silver or gold.

 

But they will lose control when the physical really does dry up, when industry orders silver and it doesn't show up or when investors can't get hold of bullion they want, that's when we see the real price of silver.

 

I think america stopped producing ase's temporarily at some point last year, maybe we've

hit something?

 

HH

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GFC. Global Financial Crisis.

Had a lot to do with it, with banks and currencies collapsing, people wanted an alternative store of wealth.

This^^

 

You will find silver and good will spike in these situations. Faith in the monetary system plays a big part.

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Why the rise in silver - Due to reactions caused by the GFC, a flight to safety and intrinsic value.  Basically the CFD, Hybrid products and Real Estate assets became so difficult to value during the GFC that people just wanted out... welcome gold and silver the mainstays of wealth protection and preservation.

 

Why the decrease in silver - Basically in the "good times" people get bored of gold and silver.  I am mostly referring to the paper gold and paper silver people.  There is so much liquidity of paper currency in the world market at the moment from all the central bank stimulus around the world.  Up until this point the central banks and large investment banks have successfully pushed the problems we saw during the GFC down the road (not fixed them), which is artificially making other asset classes like Real Estate, Infrastructure, etc seem more attractive than they really are.  The money is basically being reallocated back to these other asset classes and out of gold and silver.

 

Silver and Gold for me personally is my safety hedge or comfort blanket for when the $^@T hits the fan again, its just a matter of time as to when.

Just look through history however, during the really rough times and during wars, most places/countries only accepted payment in the form of gold or other hard assets.

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Silver more or less tracks gold so you need to examine the reasons for the gold rise and subsequent fall.

There is a massive amount of money ( not necessarily cash more likely IOUs ) sloshing around and there are huge institutions trading paper with city slickers making billions on trades both up and down - hedging etc.

As governments owned up to serious financial banking and sovereign debt crises, where do investors ( Wall Street Wolves etc ) place their IOUs and client cash ? What is seen as high risk and what is perhaps safer ?

When stock markets and banks collapse lots of investors loose their investments so what can beat physical gold as a safe haven?

Buying a commodity like gold triggers the computers to buy more and we have a kind of chain reaction.

That's what caused the rise.

Once the fallout settled it turns out that Europe isn't about to disintegrate with riots in many city capitals, banks are able to recover, China doesn't go into meltdown and the USA doesn't fall over the fiscal cliff. A bit of calm and the Wolves return to the stock market which recovers very nicely, so gold is no longer necessary to support value and selling triggers more selling so the price falls.

Problem however is that the fundamental causes of the recession are still there - huge unsustainable national debts.

The credit card is maxed out but we can always borrow more until one day a debt collector comes knocking and no-one can predict the outcome so whilst gold is relatively cheap ( and silver also ) it might be prudent to keep 10-15% of your wealth in PMs. I would include bullets but in the UK guns are banned. That's to protect your assets when and if the SHTF.

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Here is the short version. It is all supply and demand. In order to manipulate the price you need to manipulate the supply. There are other factors which affect the level of supply and the level of demand. But supply and demand is what changes the price.

My posts are my personal opinions, they do not constitute advice or financial advice.

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do you think silver has risen since  stacking came on the scene (therefore we buy the coins, and bars the dealers place more orders ) therefore  stackers and collectors  create a demand that wasn't there before

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do you think silver has risen since stacking came on the scene (therefore we buy the coins, and bars the dealers place more orders ) therefore stackers and collectors create a demand that wasn't there before

I think it will have affected the price, i.e. keeping lows higher and highs higher.

Stacker since 2013

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just off topic a bit what do you recon the big stackers/players  are ordering in oz  or £ each week month  saw a guy on you tube where the silver covered the table  and there was 10000s and 1000s of ounces (  usa I think)

just wondered what the big boys in the uk order 

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