Gold and Silver Break Free: The End of Suppression?

By Doug Young – 14 March 2025

Introduction

In recent years, concerns about gold and silver price suppression have persisted, with allegations of manipulation and interference by central banks and market forces. However, a significant shift is now underway.

Gold and silver prices have surged, breaking resistance levels and raising questions about the end of suppression.

By analyzing historical context, recent developments, and real changes in the financial system, a clearer picture emerges of the potential for gold and silver to realize their true value.

Historical Manipulation: London Gold Pool and Andrew Maguire’s Exposé

In the 1960s, central banks formed the London Gold Pool, a mechanism designed to artificially cap the price of gold at $35 an ounce. However, the system collapsed in 1968, and once gold was free to trade, its price skyrocketed to approximately $850 per ounce by January 1980.

More recently, in 2010, commodities trader Andrew Maguire exposed alleged manipulation in the gold and silver markets, leading to a Commodity Futures Trading Commission (CFTC) investigation. Major banks were accused of using paper contracts to suppress prices.

Current Developments: Surge in Gold and Silver Prices

Gold prices have recently hit an all-time high, surpassing resistance levels that had held for years. With a price exceeding $2,900 per ounce, technical indicators suggest little resistance remains before reaching $3,000 and beyond.

Simultaneously, silver prices have climbed, trading above $33 per ounce. Analysts believe silver still has significant upside potential, particularly if past suppression is unwinding.

The gold to silver ratio, currently at 88.9 to 1, historically averages around 65, indicating silver may be undervalued compared to gold.

Real Changes in the Financial System

A notable factor contributing to the surge in gold and silver prices is a massive surge in physical gold demand. Investors in New York and beyond are demonstrating a deep distrust of paper markets by demanding the actual metal.

This trend extends beyond individual investors, with central banks continuing one of the strongest gold-buying trends in modern history. Prioritizing real assets over fiat-backed reserves, central banks are making significant moves, signaling a shift in their perception of gold’s value.

Institutional Confidence: Goldman Sachs and JP Morgan

Major financial institutions are also revising their positions regarding gold and silver. Goldman Sachs and JP Morgan have both raised their gold price targets, indicating institutional confidence in continued price increases.

This shift suggests that institutional investors are not betting on lower prices, further supporting the notion that suppression may be breaking down.

Breakout and Future Potential

With gold prices breaking through resistance levels and silver showing strength, there is a growing belief that this could be just the beginning of gold and silver’s real value being realized.

Historically, silver has often outperformed gold in percentage gains once it starts moving. Analysts and investors who have expressed concerns about suppression now see the potential for a significant shift in these precious metals’ prices.

Conclusion

The recent surge in gold and silver prices, coupled with historical context and real changes in the financial system, raises questions about the end of suppression.

Gold’s breakout above $2,900 and silver’s climb suggest a potential shift in perception and market dynamics.

While ongoing monitoring and analysis are necessary, investors and the wider financial system may need to reassess their understanding of gold and silver’s true value.