Paper silver (e.g. Comex contracts and SLV) has dropped from a little over $49 per ounce to about $42 - or about 14 percent. Physical silver bullion is still trading at around $50.
Meanwhile: The exchange and regulators have raised margin limits three times in the past week, seven times in the past three months, in a effort to cut prices and force liquidation of long positions. Several broker/dealers have hiked their margin requirements even higher. The metal is in backwardation through the end of the year (i.e. people are getting paid, up to 80 percent of the contract price, to either temporarily defer or forgo their demands for physical delivery). About 25 percent of the world's available (for fulfilling commodity contracts) inventory was removed from the market last week due to reclassification (i.e. people who own the stuff are refusing to allow their broker/dealer to sell it now with the promise to buy it back in the future). Sprott's silver trust, which actually has the physical metal and allows customers to take delivery of it is selling at about a 20-25 percent premium over its net asset values.
Meaning: The metal is in short supply. Banks and brokers (and probably governments) are desperately trying to drive down the price in order to cover their naked shorts. Many commodity contracts probably won't be honored. The future of the Comex may be in doubt. Now might be a good time to buy physical silver, and you're probably an idiot if you sell the same.
are they trying to cut prices or speculation?
Paper silver (e.g. Comex contracts and SLV) has dropped from a little over $49 per ounce to about $42 - or about 14 percent. Physical silver bullion is still trading at around $50.
Not since late 2008 has there been an actual divergence between COMEX prices and what you or I could actually buy for.
You can buy a registered 100 oz bar from Kitco right now for 40.88 per ounce.