A Closer Look at the Synthetic Silver Price Index (SSPI)

Learn more about this proprietary indicator that helps determine whether silver’s price moves are genuine or likely to be false breakouts.

Silver is arguably one of the most manipulated and suppressed assets in the world—a topic I’ve covered extensively in both a detailed report and a video presentation exposing how major bullion banks like JP Morgan and UBS operate. Because of this, it’s often hard to trust silver’s price action or determine whether a move is genuine or deceptive—and there have been plenty of false moves just in the past year.

To help cut through the noise, I developed a proprietary indicator called the Synthetic Silver Price Index (SSPI). It’s proven quite helpful in confirming—or refuting—silver’s moves, and I frequently reference it in my silver market updates. In this article, I want to take you behind the scenes and show you exactly how the SSPI works—so let’s dive in.

To start, I want to highlight how silver has been repeatedly slammed every time it’s attempted to break above the critical $32–$33 resistance zone over the past year—and again at the next key ceiling around $34–$35. These deliberate price suppressions have kept silver rangebound and stagnant, even as gold has surged an extraordinary $1,000 per ounce—from roughly $2,400 to $3,400. That’s highly unusual, given silver’s historical tendency to follow gold’s lead. This ongoing manipulation has left silver deeply undervalued, a point I covered in detail in a recent report.

In an effort to determine whether silver’s breakout attempts are genuine or just traps engineered by the bullion banks, I created the Synthetic Silver Price Index (SSPI). It’s calculated as the average of gold and copper prices, with copper adjusted by a factor of 540 to prevent gold from dominating the index. The formula is (540*HG1! + XAUUSD)/2. You can easily track it yourself on TradingView, which is the primary charting platform I use. What’s remarkable is that, even though silver isn’t even included in the formula, the SSPI tracks silver’s price action with striking accuracy.

The logic behind the SSPI is that both gold and copper exert a strong influence on silver’s price action—though most investors are aware of gold’s impact, far fewer recognize copper’s critical role. That’s because silver is a hybrid metal: part precious metal like gold, but also heavily used in industrial applications, much like copper. I explored this dynamic in greater depth in a previous article and video presentation, where I explained why copper’s influence on silver is too important to overlook.

Below is the chart of the raw SSPI, which has been in a strong uptrend over the past year—driven largely by gold’s stellar performance, though copper has also held its own: