It's pretty straight forward actually. Conspiracy theories aside, and of those, there are plenty.
But, here' an attempt to explain it in the form of some bullet points.
1-Silver is a little sister of gold and when gold goes down, so will silver.
2-Several of the well known hedge funds and investors have sold off and reduced their PM holdings.
3-Silver, as an industrial metal and object of jewelry will reflect strength or weakness in the economy here and abroad.
4-Silver and gold will often follow the opposite trail of the dollar,so as dollar strengthens against other currencies, silver and gold go down.
5-In an era of free money and low interest rates one wouldexpect a continuation of silver and gold's ascent. However, markets seem to have better insight into these things than individual investors. The market obviously is taking into consideration a potential rise in interest rates and and end to the printing.
6-Many speak of inflation coming, but once again, the market is not seeing it that way.
7-Rather than a shrinking supply, the markets say there is an abundance of supply.
8-Anotherpossibility is nothing goes straight up, and this dip could merely be a correction in what will continue to be a bull market.
But if we sprinkle in the simple fact that the "markets" do not function as non-influenced true economic barometers, taking things like the Plunge Protection Team into consideration and their vested interest in keeping the metals under control, then the functionality of each one of your points becomes problematic. With central banks the world over literally spewing new currency into existence in what has been called a race to the bottom, how can we discount inflation and the ultimate impact it will have on the price of nearly everything relative to fiat? I don't think we can and thus see all of this recent price action to be stark evidence of outside manipulation to manage perception and perhaps done to also aid and extricate the court jesters from their short positions.
If there were truly unfettered or unmanaged markets and we were seeing the price action that we are witnessing then I would be greatly concerned. But I'm of the mind that this, too, shall pass. And, once the court clown and others have been allowed to exit, perhaps even taking the reverse position (and I expect that) then it may be time for the sector recovery, one in line with reality, for which we all long.
Will fiat die a long, lingering death or will it's passing be one that comes upon us in a mad rush to no value whatsoever? Unlike the 1930s in Germany and even more recently in Zimbabwe where there was no rapid information exchange, the electronic communication system of today will serve to hasten the demise of fiat in an unprecedented fashion.
Isn't JPM still underwater in a huge way on it's insane number of short contracts for silver?
The macro situation is only worsening—a positive for silver. That would lead me to conclude that the pressure is being exerted "locally" or in a "micro" fashion. Since JPM is the primary water carrier for USGOV, INC., one could easily reach the idea that a consolidated effort to force AG prices lower to lessen the pain for JPM is underway.
But, it could simply be the wild bull market ride that precious metals investors are generally all aware of before they get into this sector.