Letter: Silver Prices

Mr. Editor,

Would you please ask Mr. Rawles why the price of silver coins and silver in general has dropped in price. Since I bought mine, it’s lost half its value. Is it going to go back up? Thanks so much. The info on your website is invaluable. – C. in OH

JWR responds: The futures and spot silver markets are quite thin and easily subject to manipulation. It is presently being pressed very hard by the market manipulators. The REAL price of silver is somewhere around $22 per ounce. Just look how quickly it sells for that on the physical market at coin shops and on eBay. (Traditionally, the “above spot” markup on silver was only around 3%. However, now it is closer to 20%. Also note that the US Mint recently SOLD OUT an entire year’s worth of silver in just a few days. When the market demand is this high, it tells you that the spot market is NOT reflecting reality.

I am confident that the price of silver will recover early next year and that it will be somewhere north of $60 an ounce by 2020. Hold on to your silver. I recently bought some more!