Is Silver Losing its Shine Due to Cryptocurrencies?

Gold and silver market have seen fluctuations in their prices in the recent years. However, unlike gold silver has not recovered its prices and continues to perform poorly.

There are several reasons for this and trade pundits are trying to analyze the market for silver.

The key factor in the declining silver prices is manipulation and price fixing. Silver certainly has a long history of manipulation which can later be seen it its prices. Production of paper silver is another important factor which has dominated physical silver by up to 250 times. It has also resulted in a rift between the traditional relationship between gold and silver market prices. The production of paper silver has also affected the demand and supply mechanism of silver.

The introduction of cryptocurrencies is another important reason for the fall of silver. Currencies like Bitcoin have attracted numerous investors who would have earlier invested in silver or even gold.

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