Something Wrong With Silver? The Question Asked By Everybody

Silver Bar. Credit: Youtube

The yellow precious metal had reportedly reasonable returns of around 13% in 2017, and meanwhile, the white precious metal was reported negative at around 3.6%.

The silver investors in MCX got negative returns, which was attributed to the appreciation of the rupee against the dollar.

The scenario of the weak dollar had raised expectations of reasonable returns in 2017, as the commodities had managed to report impressive returns. It is reported that the gold and silver ratio is trading at around 77-78, and many experts suggest that silver should come up against gold, which is around the 80 ratios historically.

It is normally observed that higher gold prices spell higher silver prices. So, what is the change? The changes have been attributed to JPMorgan and the Hunt brothers who dominated the silver price at a peak of $48. And, in 1998, Warren Buffet also reportedly created an artificial shortage and acquired a handsome sum of nearly 130 million ounces of silver.

Silver had a majority short scenario in 2017, and the long positions have reportedly started to disappear again. The long position started off in January 2018, and in the second-week speculators had started lowering their net long positions. Meanwhile, the CFTC report has highlighted that the four largest traders have shorted the total amount of the white precious metal, in the second week of January 2018, which normally takes 130 days to produce.

JPMorgan had reportedly started accumulating physical silver (nearly 675 million ounces) since 2011, which is nearly six times more than Hunt brothers and Warren Buffett. JPMorgan also sells huge quantities of future contracts, and this is supposed to make the silver price fall as the prices are set in Comex.

Currently, silver prices are shown undervalued. However, silver is expected to find its way to the top, and no large trader would be able to repress silver prices in the next year.

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