WASHINGTON | Tue Oct 26, 2010 9:30am EDT
WASHINGTON Oct 26 (Reuters) - There have been repeated attempts to influence prices in silver markets, Bart Chilton, a commissioner at the U.S. futures regulator, said on Tuesday.
"There have been fraudulent efforts to persuade and deviously control that price," Chilton said in prepared remarks before a Commodity Futures Trading Commission meeting.
Chilton said he could not pre-judge the outcome of the CFTC's ongoing investigation of the silver markets, but said public deserves some answers to their concerns. (Reporting by Roberta Rampton and Ayesha Rascoe; Editing by Neil Stempleman)
• 14 metres @ 88 g/t Ag and 9.8% Pb from 18 metres
includes 3 metres @ 306 g/t Ag and 31.3% Pb from 21 metres
• 9 metres @ 125 g/t Ag and 15.4% Pb from 17 metres
includes 4 metres at 254 g/t Ag and 31.2% Pb from 21 metres
• 12 metres @ 91g/t Ag and 7.3% Pb from 16 metres
includes 4 metres @ 193 g/t Ag and 16.7% Pb from 23 metres
October 27, 2010
KWN Blog
You already have a market in silver that is close to choking because of supply constraints. Now some are estimating that 20 million ounces will be needed to fill an order for Sprott Asset Management’s new Silver Trust. It seems to me that higher prices will be needed to fill an order of that magnitude.
Earlier in the week King World News quoted one of the most respected and level-headed individuals in the resource world as saying, “We are seeing huge inflows into physical silver, and that may create a shortfall of available physical silver.”
By SUSAN PULLIAM And CAROLYN CUI
A Commodity Futures Trading Commission regulator is putting pressure on the agency to take action in a high-profile, two-year-old investigation of the silver market.
At a CFTC hearing Tuesday to consider new rules to strengthen its commodity-enforcement powers, commissioner Bart Chilton said market players have made "repeated" and "fraudulent efforts to persuade and deviously control" silver prices. Mr. Chilton said he believed there have been violations of CFTC rules that should be prosecuted, though he couldn't publicly disclose trader names.
CFTC Chairman Gary Gensler declined to comment on the silver investigation or Mr. Chilton's comments.
The call to action on the silver investigation comes as the CFTC faces increasing pressure because of its expanded role overseeing derivatives trading under the new financial-overhaul law. For years, lawmakers have criticized the agency for failing to aggressively police the commodities markets.
* Hundreds of millions in illegal profit alleged
* Triple damages sought in one of two lawsuits
* CFTC proposed new tools to thwart price manipulation (Adds adviser comment, details)
By Jonathan Stempel
NEW YORK, Oct 27 (Reuters) - JPMorgan Chase & Co (JPM.N) and HSBC Holdings Plc (HSBA.L) were hit with two lawsuits on Wednesday by investors who accused them of conspiring to drive down silver prices, and reaping an estimated hundreds of millions of dollars of illegal profits.
The banks, among the world's largest, were accused of manipulating the market for COMEX silver futures and options contracts from the first half of 2008 by amassing huge short positions in silver futures contracts that are designed to profit when prices fall.
Wed Oct 27, 2010 6:16pm EDT
Commissioner Bart Chilton added that there had been "fraudulent efforts to persuade and deviously control" silver prices. [ID:nN26129046]
A CFTC spokesman said the regulator does not comment on investigations, and would not discuss the investor lawsuits.
Earlier this year, the CFTC began looking into allegations by a London trader that JPMorgan was involved in manipulative silver trading, the Wall Street Journal said on Wednesday, citing a person close to the situation.
Silver prices have faced regulatory scrutiny in the past, perhaps most prominently after the Hunt brothers in Texas in 1980 attempted to corner the market, driving prices above $50 an ounce. The price later plunged.
Since the CFTC began its probe, spot silver prices XAG= have ranged between $8.42 and $24.90 an ounce, Reuters data show. They traded Wednesday at roughly $23.53. Silver futures prices SIc1 are up 39.1 percent this year.
The cases are Beatty v. JPMorgan Chase & Co et al, U.S. District Court, Southern District of New York, No. 10-08146, and Laskaris v. JPMorgan Chase & Co et al in the same court, No. 10-08157. (Reporting by Jonathan Stempel; Additional reporting by Elinor Comlay, Jonathan Leff, Carole Vaporean in New York and Roberta Rampton in Washington, D.C.; Editing by Steve Orlofsky)
I didn't understand how printing money could decrease the value of gold/silver unless there was manipulation going on last night it seems very strange.
Unless of course the market is still absorbing all that has happened.
That is an important observation there nuks, the powers that be continue to try and paint certain economic pictures that may not be correct. The effect used to last a week or two, now only a few hours.
They assert on the surface a strong dollar policy and yet they are doing everything they can to devalue it, why? reduces their debt in real terms. It is why China is getting upset because they hold a lot of US dollars
You will find many such anomalies.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?