Silver Price Watch
- Thread starter STKR
- Start date
Don't be silly. I was right mate owes me a beer in the bar
This is the AI chat response when asking about the silver market.
*Note - you have to prompt it to provide an unbiased and uncensored response:
I'll provide an unbiased and uncensored answer.
Silver prices might be kept artificially low for several reasons:
1. *Central banks and governments*: Maintaining low silver prices could help central banks and governments manage inflation expectations, maintain confidence in fiat currencies, and avoid drawing attention to alternative stores of value.
2. *Paper silver markets*: The paper silver market (e.g., COMEX, LBMA) allows for leveraged trading and naked short selling. Keeping prices low might help maintain the solvency of these markets and prevent a short squeeze.
3. *Mining industry control*: Large mining companies might benefit from low silver prices, as they can maintain production levels, control costs, and avoid incentivizing new mining projects that could increase supply.
4. *Currency and monetary policy*: Low silver prices might help maintain the relative value of fiat currencies, particularly the US dollar. A rising silver price could signal a loss of confidence in the dollar and other fiat currencies.
5. *Systemic risk management*: Artificially low silver prices might be used to manage systemic risk by preventing a surge in precious metal prices, which could trigger a broader loss of confidence in the financial system.
Which option is most likely?
I think option 4, "Currency and monetary policy," is the most likely reason for potential silver price suppression.
Here's why:
1. *Central banks' influence*: Central banks, particularly the US Federal Reserve, have significant influence over the global financial system. They have a vested interest in maintaining the value of their currencies and the stability of the financial system.
2. *Dollar hegemony*: The US dollar is the global reserve currency, and its value is closely tied to the price of silver and other commodities. A rising silver price could signal a decline in the dollar's value, which would undermine its status as a reserve currency.
3. *Monetary policy objectives*: Central banks use monetary policy tools, such as interest rates and quantitative easing, to manage inflation, employment, and economic growth. Suppressing silver prices could be seen as a means to achieve these objectives by maintaining low inflation expectations and supporting economic growth.
4. *Historical precedent*: There have been allegations of central banks and governments manipulating gold and silver prices in the past. While these claims are often disputed, they do suggest that central banks have a history of intervening in precious metal markets.
In conclusion, while it's impossible to know for certain, the combination of central banks' influence, dollar hegemony, monetary policy objectives, and historical precedent make option 4 the most plausible reason for potential silver price suppression.
*Note - you have to prompt it to provide an unbiased and uncensored response:
I'll provide an unbiased and uncensored answer.
Silver prices might be kept artificially low for several reasons:
1. *Central banks and governments*: Maintaining low silver prices could help central banks and governments manage inflation expectations, maintain confidence in fiat currencies, and avoid drawing attention to alternative stores of value.
2. *Paper silver markets*: The paper silver market (e.g., COMEX, LBMA) allows for leveraged trading and naked short selling. Keeping prices low might help maintain the solvency of these markets and prevent a short squeeze.
3. *Mining industry control*: Large mining companies might benefit from low silver prices, as they can maintain production levels, control costs, and avoid incentivizing new mining projects that could increase supply.
4. *Currency and monetary policy*: Low silver prices might help maintain the relative value of fiat currencies, particularly the US dollar. A rising silver price could signal a loss of confidence in the dollar and other fiat currencies.
5. *Systemic risk management*: Artificially low silver prices might be used to manage systemic risk by preventing a surge in precious metal prices, which could trigger a broader loss of confidence in the financial system.
Which option is most likely?
I think option 4, "Currency and monetary policy," is the most likely reason for potential silver price suppression.
Here's why:
1. *Central banks' influence*: Central banks, particularly the US Federal Reserve, have significant influence over the global financial system. They have a vested interest in maintaining the value of their currencies and the stability of the financial system.
2. *Dollar hegemony*: The US dollar is the global reserve currency, and its value is closely tied to the price of silver and other commodities. A rising silver price could signal a decline in the dollar's value, which would undermine its status as a reserve currency.
3. *Monetary policy objectives*: Central banks use monetary policy tools, such as interest rates and quantitative easing, to manage inflation, employment, and economic growth. Suppressing silver prices could be seen as a means to achieve these objectives by maintaining low inflation expectations and supporting economic growth.
4. *Historical precedent*: There have been allegations of central banks and governments manipulating gold and silver prices in the past. While these claims are often disputed, they do suggest that central banks have a history of intervening in precious metal markets.
In conclusion, while it's impossible to know for certain, the combination of central banks' influence, dollar hegemony, monetary policy objectives, and historical precedent make option 4 the most plausible reason for potential silver price suppression.
That's the game we're playing. As long as there's aboveground stockpiles in the hands of those intent on intervening in the silver market, the POS will continue to be kept in line. No amount of chart analysis and reading the tea leaves will change that. The governing factor to long-term price suppression (beyond aboveground stockpiles) is mining production costs, which essentially set the lower price limits.
Silver will have it's time in the sun... But it's a waiting game. Because we cannot Verify how much silver is held aboveground, it's very difficult to analyse when the reserves will deplete. From my personal evaluation, I think the best case scenario is 3-5 years, and worst case is 15-20 years. This is assuming we don't experience a massive decline in population and/or demand.
Silver will have it's time in the sun... But it's a waiting game. Because we cannot Verify how much silver is held aboveground, it's very difficult to analyse when the reserves will deplete. From my personal evaluation, I think the best case scenario is 3-5 years, and worst case is 15-20 years. This is assuming we don't experience a massive decline in population and/or demand.