It stands to reason that central banks would like to hold down gold and silver prices.

October 12, 2011 – It stands to reason that central banks would like to hold down gold and silver prices. In the late 1970s they started a campaign of market meddling as part of their war against inflation. The campaign failed to hold back inflation but it was successful in keeping the price of gold and silver artificially low for decades.

Gold has since rebounded nicely, but not so silver. Considering that the money supply has inflated 700% since then one would expect the price of silver to be at the very least close to $200 today. The gap is far too wide to sustain. makes a very strong case for an imminent snap back in silver prices. Adding to the pressure to catch up is a startling shortage in supply. Saudi shops began running out of silver a month ago and now the UAE is likewise sold out.

It’s not just an Arab phenomenon. From Texas to Australia reports are coming in of little to no stocks. “Something has to give and it is the price of physical silver rather than the Comex price of the shiniest of metals,” ArabianMoney says.

Think of it as a bubble in reverse. No amount of government meddling can hold back a market under such mounting pressure. The rebound, when it comes, will be enormous. “Those who go seeking out physical silver to buy at current prices are going to be very well rewarded and soon.”

A lot has changed over the past three decades. The central banks were successful in manipulating gold and silver prices only because they had a relatively strong currency to work with. But those days are over.

We see it today in the gold price, which steadfastly rebukes all efforts to hold it back. And we will see silver break out in the very near future.

There couldn’t be a better time than now to get serious about gold and silver investment.

Shannon King

Senior Staff Writer –

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