Tag Archives: Spot Price

Why the spot price of silver dropped so much in April 2013

Much to my surpirse and the surprise of many other people follwoing the price of silver, after reaching a stable $30 spot price and staying there for a while, instead of expected rise, we have seen a sudden drop to $22. In the light of what we know about silver, in particular the mining costs and high demand for silver in the market, only one explanation can be given: serious manipulation on the market. The questions is how can someone lower the price of something for which there is a huge demand? They can't. That's the answer. If you want to buy real silver, you'll find it very difficult to buy it at less than $30.

So why is the spot price $22-24? Simply because the spot price is the trading price on various markets, many of which trade "non-existent" silver or silver IOU's, which are promises to give the bearer certain amunt of silver. The problem is that most of that silver does not even exist in a form available for sale. In the futre it might be explored or mined, but at the moment it's only a promise, and we know how safe it is to invest into someone's promised backed by nothing but one piece of paper 🙂 (if you have any doubts, it's very risky, to be clear).

Now watch me in a TV program talking about the price of silver, and leave your comments and questions, and share the video with others:

[youtube]http://www.youtube.com/watch?v=H_Sugm1FTc0[/youtube]

 

If you would like to protect your savings with tangible assets, have a look here: www.KamilsCoins.com.

To your success!

Kamil K.