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10:32 AM
zimbio
An investor by the name of Peter Laskaris alleges that starting in 2008, JP Morgan colluded with HSBC to suppress silver so call options (the right to buy) would decline, and put options (the right to sell) would increase.The collusion was also used to maintain and manipulate prices.
JP Morgan placed spoof trading orders according to the complaint. (I'm not going to get into what spoof trading orders are, feel free to search the term online)
So, what does all of this really mean? Basically, JP Morgan used their large position to effect the market. They flooded it with a disproportionate number of orders that in turn influenced prices.
This is an unlawful and manipulative suppression of silver prices. The Commodity Futures Trading Commission has been probing allegations of price manipulation in the silver market since 2008.
Yesterday, at a hearing in Washington CFTC Commissioner Bart Chilton said there have been “fraudulent efforts to persuade and deviously control” silver prices and violators should be prosecuted.
There has been a conspiracy to suppress prices of silver futures to profit from enormous short positions in silver futures. (this is exactly what JP Morgan has done)
What does this silver conspiracy mean to me? Basically, the silver manipulation which has occurred means silver is being priced for less than it's worth. Yes, that's right.
Silvers natural price should be much higher than it is, even today. In such a volatile market where the dollar continues to become weaker, silver is a safe-haven many investors are continually running to. Why do you think silver outperformed gold last year?
The Real News Now is not here to tell you how to invest your money, it is simply here to provide information concerning various topics. (Although we hope you do some extensive research into the subject of precious metals)
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