What is to stop the larger players in the silver market (SLV): * Selling - Driving the price down. * Buying - at a lower price, sending the price up * Selling - Driving the price down. ... You get the point. Is there any regulation against doing this? Who polices it?
Nothing to stop them. That is exactly what they do. How could JP Morgan and Goldman Sachs be stopped from doing this ? They control the exchange and set the rules. They fund the political parties and own the govt.
The 'regulator' is the Commodities Futures Trading Commission (CFTC) and could prosecute on evidence of manipulation of markets, (as was done to the Hunt Bros.) however the commission, for all intents & purposes has been bought by the banks. http://invezz.com/news/commodities/...lver-market-manipulation-likely-to-be-dropped
SLV wasn't the single big price driver of recent years. The Comex futures market was. Regulation origins from government, do you expect it to benefit those that wanna escape their thefts? Just concentrate purchasings on moments that the larger players hold small positions. Like was the case until a month ago, a 15 years low in Comex net position (all longs minus all shorts - equal means neutral, no net position at all). See my signature text. And btw, the larger players drive the price up not only at lower prices. And JP Morgan is a bullion bank and swap dealer of which many larger and smaller traders use the silver from for their positions. Of course JP Morgan holds a big net short position, you can't really expect a bullion bank / dealer to have no hedge against those speculators that wanna sell you the silver back at a higher price, can you? http://www.cftc.gov/dea/futures/other_lf.htm Number of Traders in Each Category Total: 174 That is Commercial Hedgers + swap dealers + large traders + other reportables. The amount Small Traders is not published. But it will be much more. At the moment: Demand side: - Small Traders hold 18,790 longs and 14,024 shorts, giving them a total net position of 4,766 long. - Other Reportables (Large Traders that manage own money) hold a total net position of 8,101-5,761=2,340 long. - Managed Money (Large Traders that manage others money) holds a net position of 13,039-16,168=-3,129 short. Supply side (with Evil JPMorgan present in both classes EEK!!!): - Producers Merchants Processors User Long (commercial hedgers / miners / refiners etc) hold a net position of 14,184-47,294=-33,110 short - Swap Dealers (these deal swap transactions with others, and here they manage or hedge the risk involved with those) hold a net position of 33,757-23,921=9,836 long. And this illustrates how useless it is to focus on JP Morgan It's like blaming a silver dealer for hedging against customers that want to sell the silver they bought at a lower price, back to the dealer at a higher price. And in the end, any short position requires someone willing to take the corresponding long side. A contract, a gain and a loss is not possible without two sides. You can't sell without someone buying it and you can't buy without someone selling it. So trew, why narrow it then down to JP Morgan and Goldman Sachs? SliderC talked about SLV, which is btw a physically backed ETF, that traces the price by buying and selling allocated silver, unlike some other ETF's that do this along Comex futures market positions. Blame those that order silver over a couple months to then never ask for delivery, haha. A typical silver total position sweep amounts to 50,000 positions of 5000 ounces. That's 250 Moz silver, a quarter of worlds annual supply, order given but cancelled a couple months later. Just to chew out some free purchasing power from those that hedge against inflation. Wanna stop them? Haha, stop buying when they buy back in.
Madoff was the fall guy. No doubt others were involved and they're the one's that pocketed billions while Madoff was fingered as the 'lone gunman'.