Why did the silver price drop so drastically?

This question of the drop in the silver price has been a persistent one I have dealt with over the last few months. In the main my advice has been to take advantage of what is a temporary situation and invest heavily in silver.

One thing that is absolute clear is that the demand for both physical gold and silver has continued to rise significantly. A lot of this is due to an increasingly unstable economic climate worldwide. Here in the UK it is evident that many first time investors have also added to the demand. We continue to say that gold is more of a “hedge against inflation” rather than an “investment,” but the truth is it continues to out-perform other traditional investments such as stocks, shares and ISAs.

Unfortunately it is the same speculators that have caused the current financial crisis who are now speculating huge amounts of money on silver that has forced the price down. The price is driven down in order to discourage investors from demanding delivery of their physical silver, which the speculators didn’t really buy in the first place. The highlighted audiolink below explains it all very clearly.
Audio/Video Links

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