Price of Silver Being Suppressed

There have been a few questions bothering me for the past few months regarding the price of silver. Silver’s price keeps dropping, even in the midst of temporary shortages. Yesterday it was reported, that nearly 10% of the U.S. Silver supply was essentially vaporized.

Rio Tinto’s Kennecott mine in Utah- the US’ 2nd largest silver mine and world’s largest copper mine has just suffered a massive landslide which will likely shut down production at the mine for years as upwards of 1 billion tons of dirt and ore have collapsed into the basin.

In light of this news, I expected the price to go up, rather than plummet almost two dollars an ounce in a single day! Take a look at this graph I snagged from silverprice.org.

The price of silver dropped heavily in one day

The price of silver dropped heavily in one day

The very fact that the supply of physical silver in the world decreases permanently with each industrial/manufacturing application, the price of silver should be through the roof. There will come a time when there is just no more silver to be had from the earth, yet its price doesn’t reflect that. This tells me the price is being suppressed.

Why don’t we see the same thing happening with gold? The BBC reports the price of gold has been making serious upward motion for quite some time relative to the price of silver:

The price of gold has risen sixfold in the last 10 years, and has more than doubled since the global financial crisis of 2008.
Source

Yes there are many who say even the price of gold is being suppressed and I tend to believe them. THe question is why? To what end is this being suppressed and for how much longer. The dollar’s ability to keep its head above the water is quickly fading, and many analysts are predicting a terrible collapse in the near future.
It seems quite promising to get in on this silver market now, the prices may drop more, but when they bounce back…
It seems many smart investors know this and have been investing in silver at an outrageous rate compared with gold:

How long can investors continue to buy silver at the current ratios when the availability for investment is only 3:1? We are surprised that the price of silver has remained at such a depressed level compared to gold. Historically, the price ratio between gold and silver has been 16:1, when both were currencies. Today the ratio is 55:1, so what are the numbers telling us? We believe this is one of those times when smart investors will be well rewarded to “Follow the money.”

As the dollar weakens further expect to see more suppression in the precious metals. Until the time the dollar finally collapses, the suppression will continue. After that, the price of the metals will skyrocket. Are you prepared? Have you hedged against the fall of the dollar?