Manipulation Capitulation?

Posted | 26/05/2014 / Views | 2068
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Opinion is divided amongst experts around the apparent manipulation of the gold and silver markets, as played out dramatically in April last year, but many argue happens every week.  Some say it is simply J P Morgan et al using high frequency trading and might to play with and then profit from a relatively ‘small’ market.  Others argue they are ‘sponsored’ by the US Fed et al to suppress gold prices and make the dollar they keep printing look better.  The good news is it has extended a good buying opportunity for Jo Public and all things unnatural always get overtaken by natural forces.  Those natural forces appear to be starting. 

Last week Barclays were fined $44m dollars for manipulating the London Gold Fix, DeutscheBank pulled out of the London Gold Fix amongst manipulation allegations, there is a massive class action (including billionaire Eric Sprott) taking it on in the states, high frequency trading (HFT) is also being investigated more broadly, the end of the London Silver Fix in August was recently announced, and the sheer outrageousness of the size of the big bullion banks’ COMEX short position in silver has many now asking questions.  Silver in particular had an amazing rally in early 2011 based on a supply squeeze forcing covering of shorts.  A repeat of that alone could be nature putting an end to this.  Talk about a coiled spring…