An update from the so-called investigators for those who monitor this farce.

Regards - VHF

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Silver price manipulation probe may hit prices

October 8, 2010

WASHINGTON (Commodity Online): Will the truth come out ever as far as the bullion price manipulation occurred in the US. It seems the investors will get to know the truth if a demand from them is accepted by the regulators.

Recently, the US regulators were urged to reveal the results of a two-year-long investigation into silver and gold price manipulation allegations. The findings are keenly awaited by investors and organisations who have been making allegations about silver and gold price manipulation for decades.

The investigation was based on a claim that large traders, like banks, had been selling huge amounts of silver on the futures market to keep prices down. A substantial short position — believed to be equivalent to 25% of the annual global mining supply of silver — was exposed during the financial crisis.

Bart Chilton, a commissioner at the US Commodities Futures Trading Commission (CFTC), which is investigating the claims, told a US newspaper that he thinks the public deserves some answers in the very near future.

The investigation could also affect silver prices. It seems the activity which had raised the original concerns had stopped and so a direct effect on the price of silver was unlikely.

Back in March 2010 CFTC investigators had made significant discoveries. It had looked at the silver market like it had never before and there was a window of success that had been opened for understanding about what has been going on and why.

This was the first full investigation into the silver market since 1979 when the Hunt brothers cornered the market and the silver price spiked.

Until 2008 the CFTC believed that these allegations were groundless, a view still held by some gold experts.

However the product manager of ZKB’s physical gold exchange traded fund, suggested that concerns about the global gold and silver markets had motivated significant investments. He said that clients liked the Switzerland-based ZKB ETF because ZKB was the product's sole market maker which minimised reliance on global gold markets.