I’ve not been paying attention to this as I regarded it all as just another conspiracy take. That JP Morgan – and or some traders – were cornering the global silver market. That they’d watched the Bunker Hunts and worked out how to do it successfully. It’s one of those things that’s been on the investment boards for ages.
Thing is, is it actually true?
Two current and one former precious metals traders at JPMorgan Chase have been charged with manipulating futures markets in what prosecutors described as a massive, multi-year conspiracy run out of the bank.
The US Justice Department said three men ripped off market participants and even clients as they illegally moved prices for gold, silver, platinum and palladium.
Prosecutors allege that over eight years and thousands of unlawful trades the men engaged in activities that resulted in them being charged with multiple counts of fraud and conspiracy, including racketeering.
Is that what this is? Or are we talking about something more like Libor? Where people were fiddling the fix by a couple of basis points to favour their own futures positions?
The difference. If it’s an attempted corner then the price has been out by tens of dollars an ounce – which is the wilder claim I’ve seen. If it’s like Libor then it’s a cent at most out, and either way on any particular day. Anyone know more about this case?