Why Silver Prices Are Heavily Manipulated?

Silver's true value is being suppressed by banks and futures markets, but growing demand and shrinking supply could break the cycle. Investors may be holding one of the most undervalued assets today

 Why Silver Is Heavily Manipulated? (photo credit: PR)
Why Silver Is Heavily Manipulated?
(photo credit: PR)

Gold has just crossed the historic $2,900 mark, reaching an all-time high, while silver remains frustratingly undervalued and lagging far behind. Despite its rising demand, dwindling supply, and crucial role in technology and renewable energy, silver has failed to reflect its true market value.

Silver, often referred to as “the poor man’s gold,” has long been a sought-after precious metal for investors, industries, and governments alike. Yet, its price remains artificially suppressed, sparking controversy, investigations, and regulatory scrutiny.

Many experts argue that silver is one of the most manipulated commodities in the world, with large financial institutions, bullion banks, and futures markets playing key roles in keeping prices artificially low. But why would they do this, and how does silver manipulation work? Even more importantly, is silver’s critical role in military and aerospace technology a hidden reason for its price suppression?

The Evidence of Silver Price Manipulation

1. Suppression of Physical vs. Paper Silver Markets

One of the biggest arguments for silver manipulation is the disconnect between physical silver and paper silver. Unlike gold, which central banks openly buy, silver is primarily traded through derivatives and futures contracts rather than physical ownership.

  • The COMEX (Commodity Exchange) futures market allows banks to sell massive amounts of “paper silver” without having the actual physical metal to back it up.
  • This paper silver supply exceeds the actual physical silver available, creating an illusion of abundance and suppressing prices.
  • Physical shortages don’t reflect in prices, as large contracts are settled in cash rather than metal, keeping silver artificially undervalued.

2. JPMorgan & Bullion Bank Manipulation

Major financial institutions have been accused of manipulating silver markets for decades. One of the most high-profile cases involved JPMorgan Chase, which was found guilty of spoofing silver and gold prices through illegal trading practices.

  • In 2020, JPMorgan paid a $920 million fine for manipulating the silver and gold markets for years.
  • The bank used “spoofing” tactics—placing large fake sell orders to drive prices down before buying at lower prices.
  • Despite this record fine, JPMorgan and other banks continue to dominate silver trading, leading many to believe that manipulation is still rampant.

3. The Silver-to-Gold Ratio Imbalance

Historically, the silver-to-gold ratio (the amount of silver it takes to buy one ounce of gold) has averaged around 15:1. However, in modern markets, this ratio has been artificially inflated, often exceeding 80-90:1 or higher.

  • If silver were fairly priced, it would be trading at far higher levels relative to gold.
  • Instead, banks and institutions suppress silver’s price to keep this ratio artificially wide, maintaining gold as the dominant monetary metal.

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4. Government & Central Bank Interests

While central banks stockpile gold, they do not hold silver reserves—a curious omission considering silver’s historic role as money. Governments have a vested interest in keeping silver prices low, as it benefits industries that rely on cheap silver, such as:

  • Solar panel manufacturers
  • Electronics producers
  • Medical device companies

If silver prices were to rise significantly, production costs for critical technologies would skyrocket, forcing governments to adjust policies on mining, taxation, and trade.

5. The COMEX & LBMA Price Control Mechanism

The London Bullion Market Association (LBMA) and COMEX are the two main price-setting mechanisms for silver. However, these institutions favor paper trading over physical delivery, allowing banks to control prices through:

  • Massive short positions – Institutions routinely short silver, meaning they bet on lower prices, even when demand is high.
  • Leverage of 100:1 or more – For every physical ounce of silver, there are often 100 or more paper contracts, creating an illusion of supply abundance.
  • Suppressing retail access – During silver price surges (such as the 2021 Silver Squeeze movement), major exchanges restricted buying, preventing true price discovery.

The Hidden Role of Silver in Military & Aerospace: A Strategic Asset

While silver’s industrial applications in electronics, solar panels, and medicine are well-documented, its use in military and aerospace technology is often shrouded in secrecy. Due to its highest electrical conductivity, thermal reflectivity, and resistance to extreme environments, silver is indispensable in advanced defense systems, weaponry, and space exploration.

However, its role in national security means that much of its use goes undisclosed, leading to speculation that governments may have an interest in keeping silver prices artificially low to secure steady supplies for critical military applications.

The Absurdity of Silver’s Exclusion from the Critical Minerals List

One of the most suspicious aspects of silver’s market suppression is its absence from the official U.S. Critical Minerals List, despite being essential for national security, advanced technology, and green energy. This omission raises serious questions about how silver is classified and whether its exclusion serves a larger agenda of price suppression and industrial control.

What is the Critical Minerals List?

The U.S. Geological Survey (USGS) and Department of Energy (DOE) publish a Critical Minerals List, identifying metals and minerals that are essential for national security, economic stability, and energy production.

A "critical mineral" is defined as one that:

Has high supply risk due to limited production sources.

Plays an essential role in defense, aerospace, and clean energy.

Has no viable substitutes, making its availability crucial for technology.

Surprisingly, silver—arguably one of the most important industrial metals—has been deliberately excluded from this list.

Could Silver Prices Finally Break Free?

While silver price manipulation has been ongoing for decades, there are signs that this suppression may not last forever.

  • Physical demand is surging, with record deliveries on COMEX and LBMA.
  • Silver reserves are depleting, and industrial consumption is rising.
  • New regulations and lawsuits could force more transparency in price-setting.

Conclusion: Silver’s Suppression Won’t Last Forever

While silver manipulation is a well-documented reality, the forces keeping prices artificially low may be losing their grip. With:

Record physical demand

Increasing regulatory scrutiny

Shrinking silver reserves

The growing role of silver in high-tech and military applications

It’s only a matter of time before silver prices break free from decades of manipulation. Investors who understand this dynamic may position themselves ahead of a major price correction, making silver one of the most undervalued assets of our time.

Final Thought:

Could silver’s strategic importance in national security, military, and space technology be the biggest secret behind price manipulation? If so, silver investors may be sitting on one of the most undervalued assets in modern history.

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Vary

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Expand DetailsWith over $2 billion in precious metals sold, American Hartford Gold helps individuals and families diversify and protect their wealth. Their expert team provides investors with the latest market insights and a historical perspective, ensuring informed decisions. Trusted by public figures and praised for exceptional customer service, the company offers competitive pricing on top-tier gold and silver coins, backed by a 100% customer satisfaction guarantee

This article is for informational purposes only. The opinions and analysis herein are those of the author and are not financial advice. The Jerusalem Post (jpost.1eye.us) does not endorse or recommend any investments based on this information. Investors should consider their financial situation, investment goals, and risk tolerance before making any decisions. Consulting a qualified financial advisor is recommended. jpost.1eye.us is not liable for any investment losses from using this information. The information provided is for educational purposes only and should not be considered as trading or investment advice.