Is Silver Price Ready To Explode?
A story has been lingering for a few months about a whistleblower who alleges JP Morgan has been manipulating the price of silver.Allegedly, this is accomplished by shorting the silver market at strategic times when positive silver news breaks.
Done in sufficent enough volume, this sends a signal to the market that prices are expected to go lower thus countering positive sentiment that could drive prices higher.To what end?I guess that's always the $6 million dollar question.Obviously, if you had the ability to manipulate any market up or down, there are many ways to take advantage of being forewarned of the impending direction any investment is about to take.
The story itself got little press or consideration, however, that seems to be changing.The New York Post recently wrote a brief story indicating JP Morgan's silver trade history is now being examined.Obviously, I have no idea if this can even be true.I can say that last week was very weird for silver.While gold was rising, silver was falling.Today silver is still off its price of a week ago, but rallied strong to almost a complete retracement in the last few days of trading.
Also weird is the fact that last week, sales of American Eagle Silver Coins skyrocketed to fast approach, in one week, the entire sales volume of April.Historically, gold is not the only inflation hedge.Silver is as much a safe haven play as gold.For many investors who seek the protection afforded their savings and retirement accounts when they buy gold, silver eventually becomes the affordable alternative as gold prices zoom to peaks unaffordable by the average investor.
Today's silver price is up while gold profit-takers take their turn at locking in profit from a strong gold move last week.Going forward, we'll watch silver closely for a couple weeks and see if there are any signs that JP Morgan has backed off their alleged short-selling strategy.If there is any truth to the story, and if it is true that there is an investigation taking place right now, then we could see days ahead of wild upward surges in silver prices.