Leading Banks Accused Of Rigging Silver Price

  • Posted Monday, July 28, 2014 at 08:36 PM

TANGIBLE INVESTMENTS - Los Angeles - by James O'Dell - The Gold price edged lower on Monday, easing 0.36 percent to $1,303.80 an ounce, as COMEX Gold options for August expire, while Silver dipped 1.06 percent to $20.54 an ounce. "Today, we have option expiry, with a lot of calls and puts in the $1,300 area ... if we close above that level, then there will be more consistent support over the next few days when attention turns to the FOMC (Federal Open Market Committee) meeting and U.S. data," said Bernard Sin of MKS SA.
 
Meanwhile, Deutsche Bank, HSBC and Bank of Nova Scotia have been accused, in a lawsuit filed in the U.S., of attempting to rig the price of Silver. There have been no comments on the lawsuit by Deutsche Bank and HSBC, but the Bank of Nova Scotia told Bloomberg that it would "vigorously defend" itself. The banks are being accused by an investor in a complaint filed yesterday in Manhattan Federal Court, of unlawfully manipulating Silver and its derivatives.
 
The banks allegedly used their position as controllers of the daily Silver fix to reap illegal profits from trading, this practice hurt other investors using the benchmark, according to the suit. In his filing against the three banks for price fixing, investor Scott Nicholson from Washington said: "The extreme level of secrecy creates an environment that is ripe for manipulation.
 
Defendants have a strong financial incentive to establish positions in both physical Silver and Silver derivatives prior to the public release of Silver fixing results, allowing them to reap large, illegitimate profits." Silver showed its resilience last week after intense selling on the COMEX, by remaining above its 50, 100, and 200 day moving averages, while the technical picture remains bullish like Silver’s supply demand fundamentals.
 
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