A little over a year ago, the internet was abuzz with rumors about J.P. Morgan’s alleged giant naked short position in paper silver futures and their suppression of the current silver price (supposedly at the behest of the Federal Reserve).
People feared what would happen to silver prices per ounce if this naked short were to suddenly unwind.
Since then, it appears they have been unwinding their silver shorts and the price of silver has risen dramatically. From August to October of 2010, it was up over 70%, to the highest prices seen in 30 years.
How much higher can it go?
James Turk of http://www.goldmoney.com thinks it will go all the way to $400 per ounce by 2015. That would be quite a dramatic rise, since it’s hovering around $30 per ounce as I write this.
There have long been rumors of market manipulation of precious metals prices, and especially silver prices, largely in an effort to control the value of the U.S. Dollar. So what does this mean for big and small investors?
You should definitely own gold and silver coins. It’s a no-brainer. And you should take physical delivery, at least for a certain basic amount you want to keep in your physical possession. Silver is easily tradeable and is still legal tender (at least certain types of silver coins).
While it is interesting to read the rumors, it is also too easy to get caught up in them at the expense of making decisions and taking action.
As small investors, we cannot do much about the larger players who may be manipulating the commodities and precious metals markets. Whistleblowers like Andrew Maguire do their part, but it has whatever effect it has and doesn’t have whatever effect it doesn’t have.
Totally outside our control. We, as investors, will never know all there is to know about a given commodity or a given market. We make the best decisions we can with the information we have at hand.
I feel that time is of the essence and action needs to be taken (if you have not yet invested in precious metals.) There is not doubt in my mind that, although there will be inevitable peaks and valleys, the overall trend for the foreseeable future is for gold and silver prices per ounce to rise.
In 2010 there was quite a movement to defeat JP Morgan’s silver price manipulations, but I don’t know how much of an effect it had. I as a small time investor prefer to simply and quietly go about my business developing a base position in precious metals to both protect myself and potentially profit off of possible booms, although I know that I am not smart enough to be a commodities trader. I leave that to the big boys.
Source by Kevin Smyth
Silver Prices Per Ounce and JP Morgan - Market Manipulation?
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