Just put the words 'silver manipulation' into any search engine and you can read about alleged price manipulation by big banks that some say is backed by the US government.And all in a bid to keep the dollar looking good to the average investor.
Up until early 2010 the whole silver manipulation game was dismissed as the rantings of a few 'tin-foil hat' wearers, a big conspiracy theory nothing. But that has all changed with whistle-blowers like Andrew Maguire. Remember this was the guy who told the US Commodity Futures Trading Commission (CFTC) about gold and silver manipulation and gave them advanced warning of how it would happen, all of which was proved correct. Maguire was subsequently driving with his wife in London when he was rammed by a hit and run driver. The driver was reported to have been caught and arrested but never identified and no police report. All a stupid conspiracy theory of course.
But consider a letter that was sent by Theodore 'Ted' Butler (a gold and silver expert) to the then US Attorney General Dick Thornburgh.
In that letter Butler asked the Attorney General to look into silver market manipulation, 'The price of silver, since 1983, has been depressed due to economically unjustified and excessive short sales on the Commodity Exchange … '.
That letter was written on 25th April 1989 and ends with "The true sorrow in this whole affair is that, in addition to the unnecessary financial punishment, the producers and owners of Silver (including the U.S. government) have
experienced over the last six years, there are tens of thousands of contracts held short by innocent and unsuspecting speculators who are in for a ruinous shock. Do not be surprised, when this manipulation is attacked, to see the price of Silver open $20 per ounce higher at that time. Since that would represent a $100,000 loss on each contract held short, the current $2,000 COMEX margin will provide scant protection against the inevitable massive bankruptcies for those shorts not holding real Silver."
Some say that this manipulation has continued ever since so the true price of silver is not only unknown but far, far higher than its current trading value. Maybe silver will prove to be the great investment for 2011 as some are claiming.