Miners, Bankers and Investors Eye Silver-the Versatile PM

Online, June 21, 2011 (Newswire.com) - COMMENTARY-ProspectingJournal.com-2011 has been a rollercoaster for silver, the once "Poor Man's Gold." Indeed, silver fans are beaming with optimism these days (though slightly shaken), as the precious metal still has a ways to go if it wants to sit at its historical price ratio with gold . . . If manipulation doesn't keep bashing it down.

Analysts from both sides of the fence have been throwing around the recent comments from Eric Sprott, legendary silver investor and CEO of Sprott Asset Management, regarding the recent silver takedown from its April 26 peak of almost $50. Sprott recently told Silver Investing News, "In my heart of hearts I believe it was a manipulation. There was no market. It was a setup. They just pushed it down. It was ridiculous."

The "they," of course, refers to CME and its 5 margin increases, connected to JP Morgan and HSBC in a well-orchestrated takedown. Like the Hunt brothers' infamous 1980 attempt to corner the silver market, this recent takedown was meant to take control of more silver holdings. So we have CME's silver manipulation, the banks' greed, conspiracies about wanting to keep silver devalued-the usual.

But rather than analyze the takedown, I'm interested in Sprott's overall message: "Silver has always been a currency, people are now treating it as a currency, and it's a very, very small market. There is no way that with roughly $50 billion of silver inventory around that we can make it a currency, so I see the price going much higher."

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http://prospectingjournal.com/miners-bankers-and-investors-eye-silver-the-versatile-pm/