Silver Market Sees ‘Anomalies’ and ‘Devious Efforts’ - CFTC’s Chilton
Wednesday, August 8, 2012
By Tyler Durden
The silver market was affected by “devious efforts” to move the price of the precious metal, according to Bart Chilton, a member of the U.S. Commodity Futures Trading Commission, as reported by Bloomberg.
“I continue to believe, consistent with my previous statements and information from the public, that there have been devious efforts related to moving the price of silver,” Chilton said by e-mail today in response to questions from Bloomberg. “There have also been silver and gold market anomalies outside of the silver investigate window that have raised, and continue to raise, market concerns.”
The enforcement division of the Washington-based agency, the main U.S. overseer of derivatives markets, began pursuing allegations of manipulation in the silver market in September 2008.
Investigators have analyzed more than 100,000 documents and interviewed dozens of witnesses, the CFTC said in a November 2011 statement. Chilton said last month the investigation may be completed as early as September.
In a story published Sunday, the Financial Times stated, "A four-year investigation into the possible manipulation of the silver markets looks increasingly likely to be dropped after US regulators failed to find enough evidence to support a legal case.”
The FT based their story on three unidentified people “familiar with the situation."
However, Steve Adamske, a CFTC spokesman, said on the silver investigation that “we will decline to comment because the commission has not decided a course of action on this matter.”
One of the identified targets of the current CFTC silver market investigation has been JP Morgan Chase and some have long voiced concerns that the concentrated short positions held by some banks, including JP Morgan, could allow manipulation of the price and price capping.
This could result in a massive short squeeze which propels prices much higher leading to further massive losses for ‘too big to fail’ and ‘too big to bail’ banks should the small silver market see sharp moves upwards due to the tight physical market.
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