Silver Price Analysis: Is the Government Manipulating it for Military Use?

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Is the Government Suppressing Silver Prices? The Surprising Role Silver Played in World War II and Today’s Military

What if I told you that silver—the shiny metal we often think of as just another industrial commodity—actually played a key role in helping win wars? Sounds wild, right? But back in 1942, during World War II, the U.S. government openly admitted that silver was so important for military use that they had to dip into their reserves just to keep up.

In fact, the demand for silver for war purposes was so high that it outpaced global production by millions of ounces. Let that sink in—millions of ounces! But here’s the kicker: Could something similar still be happening today? Is it possible that our government is secretly keeping silver prices low to make sure they have enough for military purposes? Let’s dig in.

Silver’s Hidden Role in War

During World War II, silver wasn’t just used for coins or basic items. The U.S. military relied on silver for critical uses like electrical components, ammunition, and even the controversial development of atomic energy. At its peak, the U.S. military was using around 100 million ounces of silver a year, and that number was expected to double to 200 million ounces!

The demand for silver was so high that production couldn’t keep up. In fact, global silver production fell short by a whopping 25 million ounces. So, what did the U.S. government do? They dipped into their reserves—yes, the same reserves you might think of as being there to back up money or for coins.

If silver was that crucial to winning a war in 1942, isn’t it possible it still plays an important role in national defense today?

Silver Today: More Important Than Ever

Fast forward to today, and silver’s role in military technology is bigger than ever. Take, for example, the Tomahawk cruise missile. Each one of these advanced missiles reportedly contains about 500 ounces of silver in its electrical systems. And that’s just one type of weapon! Silver is also used in everything from circuit boards to the wiring in high-tech military systems.

And it’s not just the military. Everyday technologies like electric cars, solar panels, and even 5G cell towers also depend on silver. You’d think that with so much demand, the price of silver would be skyrocketing, right? But strangely, that’s not the case. In fact, silver prices have remained oddly low for years, despite the growing demand.

Is the Government Manipulating Silver Prices?

This raises a pretty big question: Why aren’t silver prices shooting through the roof, given how much silver is needed for both military and civilian uses?

According to the 2024 World Silver Survey, the global silver deficit is expected to reach a staggering 265 million ounces. Last year, the deficit was over 142 million ounces, and 2024 marks the sixth year in a row that demand for silver has been higher than supply. With such a large gap between supply and demand, you’d expect prices to jump, right? But they haven’t.

Could it be that the government is keeping silver prices artificially low? Why would they do that? Well, think about it. If silver prices were to skyrocket, the cost of producing military technologies, like missiles and high-tech electronics, would also go up. Some believe this gives the government a reason to keep silver prices down.

And while we don’t have conclusive proof, history does suggest the government has a vested interest in silver. During World War II, they dipped into silver reserves to meet military needs. Could they be doing something similar today, but in a more secretive way?

Theories of Silver Price Manipulation

Some people think silver prices are being manipulated by large banks. In fact, several major banks like Deutsche Bank, HSBC, and JP Morgan have already been caught manipulating silver prices in the past. These banks paid hefty fines—over a billion dollars—because of their actions. So, it’s not too far-fetched to believe that some form of price manipulation could still be going on.

If silver is so critical to both military and civilian industries, why hasn’t the price gone up as we’ve seen with other metals and commodities? Could it be that the market isn’t reflecting silver’s true value because of manipulation?

It’s an intriguing idea, but we have to be careful. While the thought of government manipulation is fascinating, silver prices, like any commodity, are influenced by many factors. Things like global mining production, investor interest, and new technologies can also play a big role in determining silver’s price.

Silver’s Future: A Critical Resource

Whether or not you believe in silver price manipulation, one thing is clear: Silver is a crucial metal for both military and industrial purposes. It’s not just a commodity; it’s a strategic resource that the government has relied on for decades. From its role in World War II to its importance in today’s high-tech military systems, silver is a metal that can’t be overlooked.

But where does that leave us today? Should we be skeptical of silver’s stagnant prices despite its growing demand? Or is this just a case of market forces playing out naturally? It’s a tough question, and only time will tell.

As one commenter on my YouTube channel put it, market manipulation is like holding a balloon underwater—eventually, it has to shoot back up. Whether that’s the case with silver remains to be seen, but one thing’s for sure: Silver is more than just another metal. It’s money. And it’s a resource that may still play a hidden role in our government’s plans today.

What do you think? Could the government still be suppressing silver prices to meet military needs? Or is it just another conspiracy theory? Let me know your thoughts in my YouTube video comment section. And if you found this topic as interesting as I do, be sure to like, comment, and subscribe to stay in the loop!

About The Author

Noel Lorenzana is an Illinois-licensed, Registered Certified Public Accountant with over 20 plus years of experience.

Through his online educational content, YouTube videos, easy-to-understand courses and 1-on-1 consulting, he gives you the tools to become tax savvy for yourself. 

Disclaimer: Any accounting, business or tax advice contained in this article, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties.