View the article online at http://citywire.co.uk/money/article/a437169
Silver price manipulation: 'public deserves answers'
An official investigation into silver price manipulation has been going on for two years. The man who made sure the investigation went ahead has told Citywire that it's time the public heard the results.
US regulators have been urged to reveal the results of a two-year-long investigation into silver and gold price manipulation allegations. The findings are keenly awaited by investors and organisations who have been making allegations about silver and gold price manipulation for decades.
The investigation was based on a claim that large traders, like banks, had been selling huge amounts of silver on the futures market to keep prices down. A substantial short position - believed to be equivalent to 25% of the annual global mining supply of silver - was exposed during the financial crisis.
He said: 'I expect the CFTC to say something on our silver investigation within weeks. I can't pre-judge what that will be. I can't even guarantee that the agency will speak. That said, if the agency remain silent for much longer, I intend to speak out on the matter in an appropriate fashion.'
Geoffrey Aronow, a former CFTC investigator, told Citywire that there was a chance the investigation could affect silver prices: 'I would say that, generally speaking, results of investigations have not had direct market impacts, but it may depend on whether the Commission concludes that there is any ongoing questionable conduct.'
Ben Davies, chief executive of Hinde Capital, a london-based gold hedge fund manager, said that the CFTC investigation and actions taken by gold and silver investors had helped recent increases in silver prices. He said that this had curtailed the activity which had raised the original concerns about silver price manipulation, adding that a further direct effect on the price of silver was unlikely.
Back in March 2010 Chilton suggested that CFTC investigators had made significant discoveries: 'We have looked at the silver market like we have never before and I think there is a window of success that has been opened for understanding about what has been going on and why.'
In the statement he said this was the first full investigation into the silver market since 1979 when the Hunt brothers cornered the market and the silver price spiked.
However the product manager of ZKB's physical gold exchange traded fund, suggested that concerns about the global gold and silver markets had motivated significant investments. He said that clients liked the Switzerland-based ZKB ETF because ZKB was the product's sole market maker which minimised reliance on global gold markets.
News sponsored by:
The Citywire guide to investment trusts
In association with Aberdeen Asset Management
More about this:
Look up the shares
More from us
What others are saying
- Silver Report: US regulators 2008 investigation
- Wall Street Journal: CFTC relents and investigates silver
- Seeking Alpha: gold and silver short positions closed
- Silverseek: Ted Butler's 'Smoking Gun' report
- Bart Chilton: March 2010 silver comments
- Hunt brothers
- Geoffrey Aronow partner at US law firm Bingham
- Geoffrey Aronow: copper manipulation investigation
- Trustnet: Paranoia premium or plain expensive?
- CFTC commissioner Bart Chilton
- Commodities Futures Trading Commission (CFTC)
- ZKB: physical gold exchange traded fund
- Gold hedge fund manger: Hinde Capital
- Gold Anti Trust Action Committtee (GATA)
- Mineweb: GFMS criticises GATA
Tools from Citywire Money
From the Forums
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add firstname.lastname@example.org to your safe senders list so we don't get junked.