Markets

Silver Manipulation Flattens Commodities

Last week, silver margins were increased by the CME twice by 20%, today they raised them again to 30% flattening commodity prices and forcing traders to exit and take their losses.

A number of commodities houses have demanded additional margins far above and beyond the CME increase driving investors, traders and holders out of the market.

Apart from USA employment data, there seems to be no justification in the fall in commodity prices, the world economy is sound as earnings week showed.

USA firms are not hiring as many people as the Government would like however, the same Government has made the cost of hiring new USA employees prohibitive when compared to global wage rates.

The USA worker is no longer set apart from the World's billions of workers and the Government will need to do more to encourage small to mid size businesses to stay in the USA, rather than attempting to artificially bring down commodity prices.

Spot gold was bid at $1,481.39 a troy ounce at 1136 GMT from $1,471.70 late in New York on Thursday when it saw $1,462.40 an ounce, its lowest since April 14. It is down about $100 since a record high of $1,575.79 hit on May 2.Spot platinum was at $1,787.49 an ounce from $1,758.95 on Thursday and palladium was at $713.97 from $707.08 an ounce.

Spot silver earlier touched $33.49, the lowest since February 28. Prices of the industrial precious metal plunged 12 percent on Thursday, its biggest one-day decline since October 2008. It was last bid at $33.83 from $34.67 on Thursday.

Shayne Heffernan

Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.

Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

www.livetradingnews.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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