According to a new academic
the London gold fix, which is used as the benchmark to value the
metal by jewelers, miners, traders and central banks, may have
been manipulated for about a decade by a group of bankers.
The study reveals "
unusual trading patterns around 3 p.m. in London, when the
so-called afternoon fix is set on a private conference call
between five of the biggest gold dealers, are a sign of collusive
….. the moves weren't replicated during the morning call and
hadn't happened before 2004…"
One of the authors of the research paper Prof. Rosa Abrantes-Metz
wrote "Libor Manipulation?" paper in 2008 which then uncovered
the massive Libor fix scandal.
Earlier this week, FT published an article "
Gold price rigging fears put investors on
" that suggested that gold prices may have been manipulated on
50% of occasions between January 2010 and December 2013.
While the article has been removed (for unknown reasons) from FT
website, Zero Hedge has published what they call a
of the article.
After an ugly performance in 2013, gold prices have rebounded
nicely this year and are up more than 10% year-to-date. Rising
concerns about the health of the economy and crisis in emerging
markets have led some investors to seek safety in gold.
Strong demand from China-which has overtaken India as the world's
largest consumer of gold jewelry-- further aided the recovery.
Chinese investors are increasing their gold investments probably
out of concerns about the health of their own economy.
Do you think that gold prices are being manipulated? And can gold
continue its uptrend this year?
MKT VEC-GOLD MI (GDX): ETF Research Reports
MKT VEC-JR GOLD (GDXJ): ETF Research Reports
SPDR-GOLD TRUST (GLD): ETF Research Reports
ISHARS-GOLD TR (IAU): ETF Research Reports
To read this article on Zacks.com click here.