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This article proves how paper silver (i.e. silver futures market) has been able to cap the silver price despite exceptional strength in the physical silver market. The first quarter of 2013 revealed this great disconnect based on publicly available data. Besides, silver expert Ted Butler calculates an historic concentration of short positions by JP Morgan allowing the bank to control the silver price.
Silver started the first quarter at $30.45 per ounce (Jan 2[SUP]nd[/SUP] 2013) and closed more than $2 lower at $28.30 per ounce (March 29[SUP]th[/SUP]). During the same time period, investment demand for physical silver was historically strong and all data pointed to accumulation by investors. This evolution asks for an explanation; the answer lies in the paper silver market.
The Great Disconnect Between Paper & Physical Silver | Gold Silver Worlds
Silver started the first quarter at $30.45 per ounce (Jan 2[SUP]nd[/SUP] 2013) and closed more than $2 lower at $28.30 per ounce (March 29[SUP]th[/SUP]). During the same time period, investment demand for physical silver was historically strong and all data pointed to accumulation by investors. This evolution asks for an explanation; the answer lies in the paper silver market.
The Great Disconnect Between Paper & Physical Silver | Gold Silver Worlds