Submitted by SD Contributor SRSrocco:

There have been a lot of articles written by the gold bugs on how much the HUI and GOLD STOCKS have been manipulated compared to the price of gold.
Not much has been discussed about silver.  I took Pan American Silver (PAAS) and did a quick chart and study.  Some interesting trends are also taking place in silver stocks.

If we look at the chart below, we can see that there has been two significant sell-offs in PAAS:

In the first high stock price in March 2008 at $42.53 a share, the price of silver hit a high of $20.92.  By the time PAAS had fallen to $10.36 it had lost 75% in just 6 months.  Here are some more ratios below:

2008 SILVER HIGH = $20.92

2008 SILVER LOW = $ 8.90

DECLINE of 57% or 2.3 times low value

2008 PAAS HIGH = $42.53

2008 PAAS LOW = $10.36

DECLINE of 75% or 4.1 times low value

Now if we look at what is taking place in SILVER and the PAAS stock this past year we see a very interesting trend:

2011 SILVER HIGH = $48.70

2012 SILVER LOW = $27.72 (so far this year at time of PAAS low stock price)

DECLINE of 43% or 1.75 times low value

2011 PAAS HIGH = $42.65

2012 PASS LOW = $15.95 (so far this year)

DECLINE of 63% or 2.67 times low value

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The first interesting thing to note is the two high stock prices of PAAS.  In March of 2008 PAAS hit $42.53, but only hit $42.65 in May of 2011 even though the price of silver was more than two times the price reached in March of 2008.   Secondly, PAAS hit its low in 2008 at $10.36 when the price of silver was $8.90…. but this year when PAAS hit $15.95 when the price of silver was more than three times its 2008 low at $27.72.

Here we can plainly see that even though the price of silver had more than doubled in May of 2011, PAAS stock price only increased a measly $0.12.  Furthermore, we can see that PAAS stock price has been hammered to $15.95 even though the price of silver is now more than three times what it was at its low in 2008 (when PAAS hit $10.36).

Some analysts are forecasting much lower silver prices this summer.  If silver does reach the $20 level, I would imagine PAAS would fall to the same level it was in 2008 when its low was $10.36.  That would mean PAAS stock price would fall to the same level in 2008 ($10.36) while the price of silver (LOW AS IT IS..SAY $20) is more than double than it was in 2008.

Not only are GOLD STOCKS being manipulated… so are SILVER STOCKS.

 

-SRSrocco

  1. No question about it, both gold and silver mining stocks are manipulated along the lines of gold and silver spot price manipulation.  How could it be otherwise?

    After all, silver and gold are two sides of the same coin.

    When Jim Sinclair started putting the silver spot price chart on his JSMINESET, that’s when everyone should have realized that gold and silver are inseparable.

    And of the two precious metals, the greatest manipulation has fallen on silver (witness the nearly 4-year long investigation by the CFTC into silver price suppression).

  2. If they want to bring on $20.00 an ounce, I’ll be happy to purchase a tremendous amount of silver. I think if it gets that low, the explosion in silver will begin about that moment. Bring it on. Though I don’t do it now, I may would have to bring out the plastic.

  3. The Fed is pushing down the Mining stocks as the goverment wants to own the mines plain and simple. When the stock is down people will sell than the Fed will really be in control of the mines. Scary thought.

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