Gold and silver investments continue to shine on the market as both metals experienced another rally last week. While gold is experiencing near record high gains, the price of silver followed in tow, enjoying an incremental increase. While this certainly comes as positive news for investors betting on silver, many who see the great opportunity that silver presents wonder what’s presently preventing the highly potent precious metal from skyrocketing in price.
Analysts have long expressed enthusiasm over the luminous future the white metal could enjoy when the public catches on to the increasing global dearth of silver supply. To explain how silver remains undervalued, many have hypothesized that the only thing holding silver investments back from being a truly sterling investing asset is market manipulation.
Lending some credence to these theories, and perhaps coming as no surprise to many, are the recent headlines that the Department of Justice and the CFTC are investigating JPMorgan Chase for having allegedly engaged in major gold and silver manipulation. If the accusations are true, the major bank may have held down silver investments through bogging it down in derivatives for profit. JPMorgan is said to have colluded with other silver traders in massively buying up short contracts while betting against the price of silver. By manipulating metals, the value of silver drowns. In turn, our nation’s currency is also submerged while the alleged perpetrators would have much to gain in the way of flowing money.
This case is not dissimilar from the recent Goldman Sachs fiasco, a bank that encouraged clients to buy up bonds that were being driven into the ground by other clients’ bets. If JPMorgan should be caught red-handed, other indictments will surely follow, as the CFTC has continually investigated metals trading over the years.
These allegations may come as good news to silver investors who now have even more reasons to be optimistic. While the price of silver is bound to rise regardless, due to scarce global below ground supply and endless industrial demand for the metal, if a crackdown on market manipulation should be enforced, the time when silver investments explode could come much sooner than later.