How To Manipulate Precious Metals Markets
by Web, Liberty Metals Market manipulation is the norm. It is a reality of modern market making. There are two types of manipulation or benchmarks that can be used in currency fixes around the world, and they are both used every day. You can manipulate trading behavior and finances by presenting the wrong numbers of course, blatantly misleading other investors and the public, or by making very risky or volatile trading maneuvers yourself to cause price swings. Although this may sound a bit absurd, ultimately we are content to use a system where a few banks are able to come up with the electronically traded price of the precious metals markets around the world on a whim and force it on us while promoting their fiat currency system. We go along ignorant of the truth. There is evidence of nearly daily manipulation in the silver market and telephone based fixed on precious metals like platinum, though these methods of price setting are evolving towards a digital system. For instance, the silver bullion market has been overhauled with the help of the London Bullion Market Association and select banks and trading houses. Electronic auction based systems are now used for finding market benchmarks across the board, though these systems are manipulated via High Speed Frequency Trading. The same system of measure is going to be put in place very soon to track and prevent gold fixing as well, though bad actors will likely still exist. The Justice Department has published an investigation which details at least 10 major banks manipulating fixing calls on gold prices around the world. There will be whistleblowers over the years if metal manipulation continues because whistleblowers can be rewarded. Bradley Birkenfield for example was a UBS whistleblower who decried fraud at UBS for withholding information from federal investigators. He did a good deed and was rewarded a comfy $104 million. The bank merely got a slap on the wrist. Ultimately when it comes to manipulation there will always be some kind of loophole or lesser punishment for large scale lenders and financial institutions. Even with all of the electronic checks and balances in place to prevent metal manipulation, there is bound to be at least one way to cheat the system and profit just a little bit more. At some point in the near future, when precious metals manipulation is overwhelmed by supply and demand issues, the price of metals will correct northerly towards more appropriate price points. How to protect yourself against the manipulation of global benchmarks? Simple, manipulate the markets yourself, and add to demand.