The market silver manipulation appeared in the news (see AP Press below) but as usual the untouchable will never be caught. In fact the testimony above was done by Martin Armstrong in a private letter to a friend although his name has been mentionned by the journalist, he surely didn't dare to tell officially the whole story.
"Possible investigation looms for silver price manipulation
CHICAGO (AP) _ Silver prices have shined for months because of strong demand or market manipulation, depending on whom you believe.
But the metal has lost its luster recently amid reports of possible investigations and lawsuits into allegations a group is attempting to corner the market and drive prices higher.
Silver futures prices shot up last year as inventories of the metal in exchange warehouses fell to their lowest level in more than 12 years amid reports of surging world demand for its use in amateur photography and jewelry.
But prices began to slide in late December, and tumbled further last week amid speculation that the Commodity Futures Trading Commission, the industry regulating body for futures and options, has launched an investigation into possible manipulation of the silver market.
The commission, as is its practice, declined to comment on whether an investigation is or will be underway.
Martin Armstrong, president of the advisory group Princeton Economics International, has argued for weeks that the silver market is being manipulated. He was quoted Monday by The Financial Times in London as saying a lawsuit seeking class-action status will be filed soon by a group of lawyers he declined to identify.
Armstrong's comments reinforced rumors that roiled the market last week, causing prices to fall sharply.
Silver for March delivery tumbled an additional 16.3 cents, or 2.9 percent, Monday to $5.475 a troy ounce on the New York Mercantile Exchange. At the height of its rally, on Dec. 23, silver for March delivery reached a nine-year high of $6.243 an ounce.
To be sure, rumors of manipulation have been in the market since late fall. A Merrill Lynch analyst warned in mid-October that a syndicate of U.S.-based investors and traders controlled huge stockpiles of silver in New York and London and was seeking to buy more for storage in warehouses not monitored by the New York exchange to create a shortage and push prices to $9 an ounce.
As long as futures have been traded, there have been rumors and innuendo _ often fruitless _ that someone with deep pockets is attempting to corner a specific market by buying huge quantities of a commodity when prices are low and selling them after they reach a desired price.
Such a scenario offers the potential for huge gains _ or great losses.
In 1996, copper prices collapsed after it was discovered a trader for Sumitomo Corp., which controlled 5 percent of the market, had hidden billions of dollars in speculative losses. And the silver market collapsed in early 1980, leaving the Hunt brothers with $1 billion in losses, after they first drove the price up from $6 an ounce to more than $50 an ounce in less than a year.
But in both those examples, prices were on the rise at a time when supplies were plentiful. Silver demand since 1990, however, has far outpaced production amid soaring use of silver nitrate for amateur photography in Russia and China. Silver also has benefited from increased jewelry buying in India and elsewhere and its growing use in electronics.
Demand for silver in 1996 jumped 4.4 percent to 814.9 million ounces, while supply from mine output and recycling grew only 2.5 percent to 643.4 million ounces, according to the Washington-based trade group, the Silver Institute.
Some analysts also have cited silver's growing use as an investment option, given the gold market's collapse because of a supply glut and increasing sales from central banks. "
"Possible investigation looms for silver price manipulation
CHICAGO (AP) _ Silver prices have shined for months because of strong demand or market manipulation, depending on whom you believe.
But the metal has lost its luster recently amid reports of possible investigations and lawsuits into allegations a group is attempting to corner the market and drive prices higher.
Silver futures prices shot up last year as inventories of the metal in exchange warehouses fell to their lowest level in more than 12 years amid reports of surging world demand for its use in amateur photography and jewelry.
But prices began to slide in late December, and tumbled further last week amid speculation that the Commodity Futures Trading Commission, the industry regulating body for futures and options, has launched an investigation into possible manipulation of the silver market.
The commission, as is its practice, declined to comment on whether an investigation is or will be underway.
Martin Armstrong, president of the advisory group Princeton Economics International, has argued for weeks that the silver market is being manipulated. He was quoted Monday by The Financial Times in London as saying a lawsuit seeking class-action status will be filed soon by a group of lawyers he declined to identify.
Armstrong's comments reinforced rumors that roiled the market last week, causing prices to fall sharply.
Silver for March delivery tumbled an additional 16.3 cents, or 2.9 percent, Monday to $5.475 a troy ounce on the New York Mercantile Exchange. At the height of its rally, on Dec. 23, silver for March delivery reached a nine-year high of $6.243 an ounce.
To be sure, rumors of manipulation have been in the market since late fall. A Merrill Lynch analyst warned in mid-October that a syndicate of U.S.-based investors and traders controlled huge stockpiles of silver in New York and London and was seeking to buy more for storage in warehouses not monitored by the New York exchange to create a shortage and push prices to $9 an ounce.
As long as futures have been traded, there have been rumors and innuendo _ often fruitless _ that someone with deep pockets is attempting to corner a specific market by buying huge quantities of a commodity when prices are low and selling them after they reach a desired price.
Such a scenario offers the potential for huge gains _ or great losses.
In 1996, copper prices collapsed after it was discovered a trader for Sumitomo Corp., which controlled 5 percent of the market, had hidden billions of dollars in speculative losses. And the silver market collapsed in early 1980, leaving the Hunt brothers with $1 billion in losses, after they first drove the price up from $6 an ounce to more than $50 an ounce in less than a year.
But in both those examples, prices were on the rise at a time when supplies were plentiful. Silver demand since 1990, however, has far outpaced production amid soaring use of silver nitrate for amateur photography in Russia and China. Silver also has benefited from increased jewelry buying in India and elsewhere and its growing use in electronics.
Demand for silver in 1996 jumped 4.4 percent to 814.9 million ounces, while supply from mine output and recycling grew only 2.5 percent to 643.4 million ounces, according to the Washington-based trade group, the Silver Institute.
Some analysts also have cited silver's growing use as an investment option, given the gold market's collapse because of a supply glut and increasing sales from central banks. "
