This silver price is a market of extremes. Since the last Silver Summit, the price has fallen by nearly 50%, to the lowest levels since 2010. But take a longer-term view and we find from its 2008 lows, the silver price is still higher by 250%.
As the price of silver did to the upside in 2009-2011, the downside since has been equally extreme in emotions, now a fear-dominated sentiment. The price reflecting this negative state with a sell-off low during the Summer, trading below $20/ounce.
With the silver and gold markets having found an extreme selling capitulation in early Summer, prices have been able to consolidate higher over the past months, recovering some of its large losses. Unlike with the Gold ETF holdings, Silver ETF investments remained firm with strong investment demand following silver to its lows.
The biggest force on the price came from speculators, banks which continue to show large concentrated short positions, in strong control and weighing on the paper silver price. The paper silver market price continues to be a game which will last until trust and confidence is lost in the exchanges which fix the price with paper claims and not physical backing.
Source Silver Seek