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Silver speculation by big banks manipulates silver prices
Key Excerpts from Article on Website of New York Times blog
Posted: March 16th, 2011
http://opinionator.blogs.nytimes.com/2011/03/02/a-conspiracy...
In the past six months, the value of [silver] has increased nearly 80 percent, to more than $34 an ounce. [This] is reminiscent of ... the Hunt Brothers. When the Hunts started buying silver in 1973, the price of the metal was $1.95 an ounce. By early 1980, the brothers had driven the price up to $54 an ounce before the Federal Reserve intervened, changed the rules on speculative silver investments and the price plunged. When JPMorgan Chase bought Bear Stearns in March 2008, it inherited Bear Stearns large bet that the price of silver would fall. The international bank HSBC got into the market heavily on the bear side as well. These actions artificially depressed the price of silver dramatically downward, according to a class-action lawsuit ... filed against both banks in November. The conspiracy and scheme was enormously successful, netting the defendants substantial illegal profits in the billions of dollars between June 2008 and March 2010, according to the suit. In November 2009, [Andrew Maguire] ... a former employee of Goldman Sachs and a 40-year industry veteran, [related] tales of how the silver traders at JPMorgan were bragging about all the money they were making as a result of the manipulation, which entailed flooding the market with short positions every time the price of silver started to creep upward. In March 2010, Maguire released his e-mails publicly. Then came the cloak and dagger element: [On March 26th] Maguire was involved in a bizarre car accident in London. The Commodity Futures Trading Commissions investigation is still unresolved, and at least one commissioner Bart Chilton after interviewing more than 32 people and reviewing more than 40,000 documents, [says] there has been enough investigating and not enough prosecuting. Chilton said ... that one participant in the silver market still controlled 35 percent of the silver market.
Note: Gold and silver have been intensely manipulated for many years. The price of gold has risen 500% in the last 10 years, while silver prices have rocketed 700% in the last eight years. Yet the media consistently underreports this amazing news. Few media gave more than a passing mention to gold passing the $1,000 mark in 2008, which was a historic event. Read the full article to understand this important topic. For lots more quality information on this from a former US assistant secretary for HUD, click here.
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