Guest Post by SD reader SilverorPropertyTaxes:
Silverdoctors.com and Max Keiser have both done extensive documentation and exposing of how the silver market is manipulated.
Traditionally, silver has been seen as a hedge against inflation, but how can this work if it’s a manipulated market through phony ETF’s and re-hypothecated lending of bullion? The silver supply is running out, and you can see just a few of the figures for its rapid consumptions here and here.
When silver is manipulated – for instance the banks drop 2.5 years of U.S. silver production onto the market in ten minutes time in the form of short contracts, it makes it hard to see how anyone can use silver as a hedge against inflation in the short term. However, when you look at the rapid rise of bitcoin, you see that what could be a useful tool to hedge your silver investment against manipulation in the markets. It is more difficult for the banks to manipulate bitcoin than silver. For one, there is no one who can claim to have bitcoin and then be granted the ability to short it like silver. People have not been accumulating bitcoin for ages like silver (supposedly), and there is little or no bitcoin derivative market. [Read more...]