gold and silver - of cartels, algorithms and artificial prices

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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

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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.

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Page 1: Gold and Silver - Of Cartels, Algorithms and Artificial Prices

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