Silver has been playing second fiddle to gold for centuries, but it has infiltrated our lives in more ways than we could imagine. And yet, despite its importance, or perhaps because of its importance, it is one of the most manipulated major commodities on earth. But before we dive into the shadowy waters of price manipulation and its potential fallout, let's pay homage to the myriad uses of silver in everyday products.
Solar Panels: The Green Warrior
The rise of renewable energy has turned silver into the eco-warrior's metal of choice. Used in solar panels for its unparalleled electrical conductivity, silver is quietly powering the push towards a greener planet.
Medical Marvels: The Bacteria Slayer
In the realm of healthcare, silver's antibacterial properties make it the unsung hero in wound dressings and medical devices. If you thought silver was just for spoons and jewelry, think again. It's on the front lines, battling the unseen enemies threatening our existence. For example, suppose you've ever had a bad enough injury that required some wound care. In that case, you've probably had silver nitrate solutions or creams with silver sulfadiazine to kill and keep bacteria out.
Electronics: The Invisible Conductor
Silver's electrical conductivity, from smartphones to laptops, ensures you can swipe right or easily send a passive-aggressive email. It's the silent partner in your electronic escapades, ensuring that every pixel on your screen is a symphony of efficiency.
Mirrors: The Vanity Enabler
Silver's reflective properties aren't just for signaling rescue planes. Without silver, self-admiration would be much harder and, let's face it, a lot less shiny.
Market Manipulators Love It
Whispers and rumors have long suggested that the silver market is more controlled than a puppet on strings. Why? Considering silver's industrial and monetary roles, keeping its price on a leash benefits large institutional players and governments. Lower prices keep production costs down for consumer electronics and solar panels while minimizing silver's appeal as a hedge against inflation.
And it's not a conspiracy theory.
Deutsche Bank was the target of a class-action lawsuit for conspiring with other banks to manipulate silver prices and spoof markets. In 2016, the bank paid $38 million to settle the lawsuit, which some market watchers felt was an admission of guilt. This settlement also opened the floodgates for further lawsuits against other banks.
And as recently as 2020, JP Morgan Chase had to cough up nearly $1 billion for manipulative trading practices. In 2010, allegations surfaced that the bank was manipulating silver prices and US Treasuries. The fine for JP Morgan was more like a slap on the wrist, though, compared to how much money they likely made over their decades of manipulation, but it did pull back the curtain, however briefly, on the practices that can sway the markets.
But what happens when silver prices defy their puppet masters and soar? First, the cost of producing anything with a silver component would skyrocket. Your next smartphone might need financing options that resemble a car loan. Solar energy, the knight in shining (silver) armor of the green revolution, could see its costs bloom, slowing adoption rates.
Moreover, industries heavily reliant on silver would scramble to find alternatives, potentially stifling innovation and pushing companies to the brink. The ripples would spread, affecting everything from healthcare to renewable energy.
