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On the 27th October two traders, Brian Beatty and Peter Laskaris, filed lawsuits against both JP Morgan and HSBC accusing them of manipulating the price of silver by “amassing enormous short positions”. The following day the National Inflation Association (NIA) assessed that JP Morgan are so short on silver and that the silver market is so tight that “…. silver prices could literally rise to $50 per ounce overnight. NIA estimates that $50 per ounce silver would mean approximately $4 billion in...
Leading economists and financial experts say that our economy cannot recover until the too big to fails are broken up.
In a speech on October 26, Bart Chilton, commissioner at the Commodity Futures Trading Commission, said the US regulatory body had been examining the issue for more than two years.
"I have been urging the agency to say something on the matter for months," Mr Chilton said. "The public deserves some answers to their concerns that silver markets are being, and have been, manipulated." Mr Chilton was unequivocal about his belief that manipulation had occurred. "I believe that there have been repeated attempts to influence prices in the silver markets," he said. "There have been fraudulent efforts to persuade and deviously control that price."
However, manipulation is difficult to prove and Mr Chilton accepted this. "The legal definition of manipulation under the law is a high bar to prove. It is a much different test than what the average person might consider as manipulation. "Under existing law, to prove manipulation, the government is required to demonstrate not only specific intent, we also need to prove that as a result of the intent and market control, that activity caused an artificial price – a point which can certainly be debated by economists," Mr Chilton said.
www.telegraph.co.uk...edit on 11/12/2010 by sp00n1 because: (no reason given)
On November 3rd I sent out an alert to people who follow my newsletter warning them that the CFTC has decided to allow the Banking Cabal one more shot at rigging the Silver market before they end the practice of "officially sanctioned" manipulation.
Under Dodd-Frank reform legislation, the Commodity Futures Trading Commission must start to increase regulation of swaps and other ways to lower risk. But CFTC Commissioner Michael Dunn is concerned over funding. He said one-third of the staff is working on writing regulations, which means they've had to cut back on surveillance and oversight.
However, the current accountability level of COMEX silver is more problematic. The current silver accountability level is 6000 contracts, or 30 million ounces. This is 4.3% of world annual silver mine production of roughly 700 million ounces, head and shoulders above any other commodity of finite supply. Based upon the one percent formula, the position limit in silver should be no greater than 7 million ounces or the equivalent of 1400 contracts (each silver contract is 5000 troy ounces). It is perplexing why the CME does not bring silver position limits into line with the other major metals contracts traded on the COMEX. In copper, the current accountability level is equal to 0.4% of world copper production. Why should silver’s level be more than ten times greater than copper’s? The COMEX gold contract has an accountability level of 6000 contracts, or 600,000 ounces, based upon the 100 troy ounce contract size. This represents 0.75% of world production of 80 million ounces. Why does silver have an accountability limit more than 5 times greater than gold in terms of world production? As I previously informed the Commission, silver’s accountability level compared to gold’s is also four to five times larger than it should be in terms of volume, open interest and exchange inventories. On each and every measure, silver’s accountability level is out of line.
So I can tell you how many ounces they have or are under contract for delivery for at most at any one time. It is 30,000,000 troy oz.
In my opinion, this is the key to ending the silver manipulation, along with throwing out phony hedge exemptions to that limit for the big banks
However, the current accountability level of COMEX silver is more problematic. The current silver accountability level is 6000 contracts, or 30 million ounces. This is 4.3% of world annual silver mine production of roughly 700 million ounces, head and shoulders above any other commodity of finite supply.