Gold prices rose Wednesday on safe haven demand and bargain hunting. Gold last reported p.m. is $1204.80 up $6.80 and silver is $16.59 up 33 cents.
Switzerland’s competition commission WEKO is jumping into the ring over concerns of possible manipulation of rigging prices in the precious metals market. Both gold and silver fixes have been under scrutiny for years as investors have repeatedly made claims of uncharacteristic movements in futures markets. A spokesman said, “we have a preliminary investigation into the manipulation of gold and precious metal price fixing.”
Just yesterday the U.S. Department of Justice and the Commodity Futures Trading Commission announced they were investigating more than 10 banks over possible rigging of precious metals markets. In November, FINMA, Switzerland’s financial watchdog said it found “clear attempt” to manipulate precious metals price benchmarks during an investigation over questionable trading at UBS.
Until last year, benchmarks which influenced the price of precious metals were set by a telephone conference call by a group of banks. Benchmark prices are now being set electronically after outcry for reform forced gold fix bankers to placate investor concerns with an “honest” system.
Barclay’s, Goldman Sachs, UBS, JP Morgan, Deutsche Bank, Credit Suisse, Societe General, Scotiabank and Standard Bank are all under the magnifying glass as more lawsuits are sure to follow. An interesting fact is all of these banks have been completely immune to federal prison sentences and some have only paid minimal amounts in fines levied against them.
The gold fix is corrupt as it always has been and there’s really no difference in setting prices by phone or electronics. The process can be changed repeatedly to offer “transparency” but in the end the same bullion banksters will control the precious metals markets. The only way to end gold rigging is to stop setting prices for precious metals in the futures markets.
Mines continue producing silver at around a net loss of $7 to $8 dollars an ounce. We are currently offering special discounts on silver coins and bars. Call us at 1-800-577-3195 with any questions you may have. The Silver Canadian Maple Leaf and 1 oz. silver bar are excellent choices for your IRA as well.
Gold Goliath is not your typical gold dealer.