Even with major turmoil in global financial markets, the impact on silver prices is minimal.

Silver has been used as a safe-haven asset in economic turmoil since ancient times and is an effective tool for dealing with inflation. However, even with major turmoil in global financial markets, the impact of silver prices is minimal. The continued implementation of a loose monetary policy in the world, according to the direct link between money supply and inflation, it seems illogical not to see a huge increase in silver prices.

According to the analysis, in terms of physical silver, prices have been rising. In fact, the demand for silver in the market has increased a lot in the past few years, surpassing the supply of silver. And in most cases, it is always difficult or timely for consumers to buy the right amount of tradable silver bars. However, the growing demand for silver does not seem to flow into the silver derivatives market. To reflect the production status of spot silver and silver derivatives in the United States and Canada. In fact, a reality that cannot be ignored is that the differentiation of the physical silver and silver derivatives markets is difficult to narrow in the short term.

The analysis pointed out that the New York Mercantile Exchange market for silver derivatives trading has been manipulated and is very unfair. Large banks arbitrarily issue silver derivatives, with the aim of placing prices near the 50-day moving average.

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The so-called "waterfall effect" means that large financial institutions issue large amounts of paper silver paper gold to suppress precious metal prices.

In the past few months, the inventory of physical silver that can be used for delivery has fallen rapidly, and the fact that the number of silver derivatives has soared is an example of the “waterfall effect”. JPMorgan Chase has been one of the largest publishers of paper and silver in the silver market, and the market has speculated that there is not much physical silver available for delivery. Since ancient times, the supply of broad money has been associated with gold and silver prices. However, since the second half of 2012, broad money supply seems to be decoupled from gold and silver prices. Some experts therefore believe that the linkage between precious metals in the modern world is getting smaller and smaller. In response to this point, the analyst believes that the idea that the link between money supply and precious metal prices is no longer theoretically inappropriate. This view ignores the link between inflation and silver prices and the fact that inflation has not occurred (or continues to occur) in recent years.

Silver valuations need to be greatly enhanced to match the market's growing demand for physical silver and the fact that US money supply is potentially growing.

It is emphasized that large financial institutions will resist the appreciation of silver by over-provisioning derivatives. But said, "Excessive supply of derivatives will eventually reach a critical value. Once the threshold is reached, the price of silver will soar."

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