Why was silver so expensive in 2012?
Large traders or investors The silver market is much smaller in value than the gold market. A big driver for silver sales in 2012 was Morgan Stanley and their short position holdings. This has influenced the silver market, along with an apparent shortage of above ground silver available for investment.
Is the silver shortage real?
Although retail investors managed to spark a short-term rally in silver prices, any lasting effects are unlikely. Actually, the price of silver is already returning to its “pre-Reddit” level, as the chart below shows. So, this suggests that there is actually no shortage in the silver market.
What is causing the silver shortage?
Demand for physical silver from the U.S. Mint rose 28% in 2020, and heavy buying has only continued this year. In part, this is driven by concerns about the volatility of financial markets, by rising expectations of inflation, and by the commodity supercycle we are in that has seen many commodity prices rise.
Why did the price of silver drop in 2013?
The impact of weak silver As investors saw with gold, the drop in the price of silver during 2013 led to a cascading negative effect throughout the industry. Silver miners found their margins crushed, leading to even more extensive drops for major producers Pan American Silver (NASDAQ:PAAS) and Hecla Mining (NYSE:HL).
Why is there a shortage of silver in the market?
Many people believe that the silver market is heavily manipulated, as it’s a less liquid market than gold or other markets. The Fed’s sales and leases of silver and naked short selling of the precious metal on Comex led to the growing shortage of physical silver supply, at least in relation to the paper claims on silver.
What was the price of silver in 2011?
The silver market environment of 2011’s run to $50 per ounce was, however, very different to that of 1980.
What was the price of silver three years ago?
But as silver prices headed for $50 per ounce 3 years ago, the idea of vanishing silver supplies – rather than just tight supply of small bars or coin – was frequently promoted by many retail distributors as part of their sales pitch. Backwardation is when the price of silver in a future month is cheaper than the “spot” or immediate month.
Is the rise in silver prices a short squeeze?
The rise in silver prices contradicts the story about systematic price suppression via massive shorting. Regardless, based on this narrative, the Reddit users piled into the silver market to push up prices and trigger a short squeeze. Although retail investors managed to spark a short-term rally in silver prices, any lasting effects are unlikely.