gold and silver - of cartels, algorithms and artificial prices
DESCRIPTION
The gold and silver bullion banks typically need only a minute — as their algorithms quickly trade tens of thousands of Comex futures contracts — in order to induce a dramatic shakeout of weak long positions.TRANSCRIPT
Gold and Silver -‐ Of Cartels, Algorithms and Artificial Prices Those who follow the day to day developments in the gold and silver markets have typically seen rampant market manipulation by large traders and bullion banks. Although supposedly against the rules — and even being subjected to an ongoing investigation by the CFTC that now reaches into its fifth year — this market bullying is nevertheless allowed to happen over and over again without effective regulatory intervention. Some of these big players even employ algorithmic trading systems to move into and out of the market faster than any human can. The transactions initiated by these computerized trading programs happen rapidly and often in huge size. Algorithmic Trading Contributes to Manipulation Despite these challenges, both precious metals have been able to rise over the last decade, so the real question is how high the prices of silver and gold would be if the market had not been subjected to recent downside price volatility? Read The Rest Of The Article