Silver 'Robbed of its Luster'
Source: The Times (7/11/10)
"The price of silver is way off its all-time high. . ."
These companies continually use the futures markets to create price distortions in the market. At the moment, there is a huge [disparity] between the price and the real market situation," says Levenstein.
Historically, silver's price moves, in percentage terms, are greater than those of gold.
But, unlike gold, the price of silver is way off its all-time high, when it traded at above $50/oz (R380/oz.). The demand for silver has exceeded supply for almost 20 years. "But why is the price of this metal so depressed?" Levenstein asks.
In 1940, the U.S. government owned almost half the world's 10 billion ounces of silver. Today, it owns none. The only way to bring the supply and demand into balance is going to be higher prices.
Levenstein, who began trading silver in 1979, believes that silver is going to be one of the best investments of the decade.