The Tsunami Lessons For the Silver Market

gold siver coins

Credit: Piqsels

Are you considering investing in precious metals, maybe the white metal (silver)?, then the white metal (silver) market offers you plenty of options. You could choose silver exchange-traded funds (ETFs), silver future contracts, silver derivatives, and more. The prices seem to be moving towards the natural supply and demand equilibrium for silver. This is probably the right time for someone to enter the silver market.

Physical Silver and Paper

Buying physical silver could be easy but, physical silver needs to go through the process of storage, being protected against inflation, and watching the market trends. Silver still represents jewellery or maybe silverware to many. Its role as currency and money needs more recognition. Silver investors need to still see the investment as an option, which can help with significant monetary gains.

Getting silver information

Where to understand these fundamentals of silver options on the Internet? Today, the silver information seems to be disseminated through producers, retail bullion dealers, The Silver Institute, large industry consulting groups (World Gold Council), the chief US futures regulator (CFTC), or various exchanges and trading platforms. There seem to be few professional analysts who focus on silver.

Price Manipulation

Silver prices seem to arise from pure speculation on futures markets and are reportedly relatively easy to control. There is little collateral, and large entities, speculators, can probably afford to manage the price at a relatively low cost. Price manipulation looks possible when you have control over the price. This also helps to leverage positions for profit. So, this probably helps to maintain confidence in a currency.

In the backdrop of a speculative class going wild and the users and producers trading significantly, it is good to remember that silver is a scarce material. Silver use will grow as the economy grows. It would probably be practical to reduce the dependence on silver for making coins.

The Lessons

When you think of the tsunami, the good question is, could a seismologist have predicted its creation? It probably points towards a consideration of significant risks. In light of silver, futures are probably concentrated, which probably gives a defined manipulative position. The volume of paper obligations where the price could move up to $150 silver would probably be a conservative inflation-adjusted high. So, the lessons are not to ignore the risk of failure or denounce those regulators who bring this to light.

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