Don’t buy the conspiracy theory: buy silver

Whatever the truth about silver – and there are some wild conspiracy theories around just now - the metal is in demand, and one of the best ways to invest in it is via an exchange-traded fund.

There is a grand conspiracy around the price of silver. It concerns a mysterious cartel of traders who have made it their business to manipulate the price to keep it as cheap as possible. Some say industrial consumers of silver, who need cheap silver to produce cameras, mobile phones and medical equipment, are behind the cartel. But what many analysts agree is that these traders are about to be exposed.

With a global supply crunch on the way, the four or five traders who hold some 35% of all silver contracts on the New York Commodities Exchange will soon be called on to come up with tonnes of silver that they don't have. And when that happens, the price of silver will geyser from $16 to $100 an ounce.

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Eoin came to MoneyWeek in 2006 having graduated with a MLitt in economics from Trinity College, Dublin. He taught economic history for two years at Trinity, while researching a thesis on how herd behaviour destroys financial markets.