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“Secret Scheme To Manipulate The Price Of Silver” - Lawsuits Against Banks Proceed
“Secret Scheme To Manipulate The Price Of Silver” - Lawsuits Against Banks Proceed
The lawsuits against banks that alleges they engaged in a secret scheme to manipulate the price of silver bullion is proceeding.
Gold fixing in London at NM Rothschild and Sons began in September 1919
Litigation alleging that Deutsche Bank, Bank of Nova Scotia and HSBC Plc illegally fixed the price of silver were centralised in a Manhattan federal court yesterday. The banks have been accused of rigging the price of billions of dollars in silver to the detriment of investors globally.
Lawsuits filed by investors since July over the allegations were consolidated yesterday in the U.S. District Court for the Southern District of New York, following an order issued last Thursday by the U.S. Judicial Panel on Multidistrict Litigation, a special body of federal judges that decides when and where to consolidate related lawsuits.
The banks abused their position of controlling the daily silver fix to reap illegitimate profit from trading, hurting other investors in the silver market who use the benchmark in billions of dollars of transactions, according to the suit.
Investors claim, the banks unlawfully manipulated silver and silver futures.
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The U.S. Judicial Panel on Multidistrict Litigation ruled that the cases should be handled by U.S. District Judge Valerie Caproni in Manhattan, who is already overseeing similar litigation over alleged gold price fixing.
Three lawsuits were originally filed in Manhattan, and two were filed in Brooklyn. The plaintiffs in the Brooklyn lawsuits had sought to have the litigation consolidated there.
The banks had also asked that the litigation be consolidated in Brooklyn, in the Eastern District of New York. However, the multidistrict litigation panel said Manhattan made more sense because the defendants all had corporate offices there and also because the cases involved issues similar to the gold litigation.
The plaintiffs allege that the banks abused their power as participants in the silver fix, a London based benchmark pricing method dating back to the Victorian era, in which banks fixed silver prices once a day by phone.
In August, the system was replaced by a new benchmark system administered by the CME (Chicago Mercantile Exchange) and Thomson Reuters.
HSBC spokesman Neil Brazil declined to comment and representatives of the other banks did not immediately respond to requests for comment.
This follows the initiation of similar actions against some bullion banks for alleged gold price manipulation earlier this year. The three named banks, Deutsche Bank, Bank of Nova Scotia, and HSBC are alleged to have abused their position at the LBMA to profit from inside knowledge.
The fixing of the price of silver is a daily operation where banks on the panel of the LBMA agree on a price for the precious metals which are then used throughout the financial, jewellery and mining industries throughout the day.
It is alleged that some of the banks who fix the price, position themselves advantageously in the silver market before the price is made public.
"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," plaintiff Scott Nicholson told the AFP.
Separately, Bullion Desk reported yesterday that JPMorgan Chase Bank is now the fifth accredited member of the silver pricing benchmark, the LBMA has confirmed, with others parties “in the pipeline”, a spokesman said.
The American multinational bank which has been the subject of silver manipulation allegations by Max Keiser and others, took part in its first silver benchmarking session yesterday.
A spokesperson said they had completed “strict regulatory controls” for accredited members..
JP Morgan becomes the fifth member, alongside HSBC Bank USA, Mitsui & Co Precious Metals, the Bank of Nova Scotia – ScotiaMocatta and UBS AG.
Furthermore, the LBMA has confirmed that several other parties are also in the process of joining the list, subject to passing regulatory requirements.
Several Chinese banks have expressed interest in participating in the new global price setting mechanism for silver, according to the head of the LBMA.
The LBMA ushered in a new era of electronic benchmarking for London’s precious metals market in August when an algorithm was used for the first time to set the benchmark price for silver after recent scandals regarding price fixing and concerns about the nature of the gold and silver fix.
It will be interesting to see if Chinese banks partake in the new fix process as the concern is that the fixes remain the play things of certain western banks and are not representative of global physical demand and supply of actual gold and silver bullion.
Manipulation of the silver market was covered in a recently released ‘Get REAL’ Special on Silver presented by Jan Skoyles. Mark O'Byrne of Goldcore.com was interviewed and the interview was an in depth look at this silver market today. 
See Video here
Today’s AM fix was USD 1,223.50, EUR 967.58 and GBP 768.63 per ounce.
Yesterday’s AM fix was USD 1,233.00, EUR 974.55 and GBP 772.41 per ounce.
Gold climbed $0.70 or 0.06% to $1,233.40 per ounce and silver slipped $0.05 or 0.29% to $17.40 per ounce yesterday.
Silver in U.S. Dollars - 1984 to October 14, 2014 (Thomson Reuters)
Gold in Singapore fell 0.3% to $1,222.10 an ounce. The metal hit a four week high of $1,237.90 on Tuesday, before pulling back to close 0.4% lower.
Silver for immediate delivery or Swiss storage fell 1.4% to $17.19 an ounce in London. Palladium dropped 1.6% to $782.10 an ounce. Platinum lost 1% to $1,254 an ounce.
Gold fell on low volume again and futures trading volume was 40% below the average for the past 100 days for this time of day, data compiled by Bloomberg show.
Volumes for the benchmark spot contract on the Shanghai Gold Exchange are about 33% lower than in late September, the latest data show however physical deliveries remain very high and are headed for 2,000 tonnes again in 2014.
Yesterday, Germany’s Economy Ministry cut its economic growth forecasts for 2014 and 2015, before the Federal Reserve releases its Beige Book on economic conditions.
See Essential Guide To Gold and Silver Storage In Switzerland
»
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Good article. We will see how it goes in court but in the meantime, I think I will call up my bank and tell them that I want to order up a hundred rolls of Kennedy half-dollars. I feel like going on a silver mining expedition. Sorting through 2000 coins would be fun and educational for the kids. Who knows, there might be a silver coin or two in there. On top of that, I would think that you would get some looks when you pick them up and again when you bring the clads back.
The other thing I should ask is if I can get some Eisenhower dollars. I love spending those because it usually requires a manager to come to the checkout because the cashier has no clue what they are. My best experience was buying around six dollars worth of stuff at a hardware store with one Sacagewea dollar, one Susan B. Anthony dollar, one Presidential dollar, one Eisenhower dollar and some Kennedy halves. That caused a bit of a problem for the cashier. Well, is it not legal tender? What is the argument here? The attitude was like "Don't you just have a credit card". Yes, but I prefer to use these coins instead.
I do not recommend doing anything like that in a busy store because then you are being an asshole. Well, you are being an asshole anyway when you do that but at least you are being an educational asshole and it brings about a lot of questions. The point is that if you do not know what money is and cannot define what has value and what does not then we have a serious problem.
To this end, many have argued that there is plenty of silver in the world and that it is over valued. I disagree. People who make these assertions about the abundance of silver forget some important points. First, you have to get it out of the ground as ore assuming that you have found mineable material. It then requires transport to a facility that can extract the silver and copper from the ore. This requires energy and investment in infrastructure to accomplish. Permits, licenses, fuel, maintenance, labor, electricity, insurance, Obamacare, marketing and the list of expenses goes on. One has to wonder if these assholes who sit around fixing the price of silver take any of that into consideration? No they don't.
Another argument they like to use is that silver is the by-product of copper mining. So what does that have to do with the price of rice in China? Did the expenses change because the primary target ore was copper? No they did not and silver acts to mitigate the expense of mining copper. It is value added. Both metals are consumable commodities and it costs a great deal to produce them. We have not even talked about minting expenses.
These people who trade digital ETF's are the ones who determine the price of silver. Cost of production does not seem to matter to them at all. Why don't we just make up a ticker symbol of our own based on a shell corporation, falsify some fianancials and and P&L's and then issue an IPO and get everyone to bet on it with some digits? What is the difference? Oh, right, we don't have any buddies on Fall Street. My bad.
Keep stacking.
Meet Valerie Caproni: Civil Rights Violating FBI Lawyer to be Promoted to Federal Judge Michael Krieger | Posted Monday Sep 9, 2013 at 11:25 am
The situation below describes something that goes way beyond the usual revolving door that now represents the core characteristic of the crony capitalist, ponzi U.S. economy. No, the likely appointment of Valerie Caproni as a federal judge in one of the most important districts in America represents an even more sinister trend, a trend that is a core characteristic of all totalitarian regimes that have ever existed. What I am referring to is the fact that all deeply corrupt regimes with tyrannical tendencies will promote and embed the nastiest, most flawed characters possible into positions of power because they will do the dirty deeds most normal, decent people would never consider. Basically, you decide to promote those who have the most destructive track records possible to serve as your praetorian guard. It was this signal that demonstrated to me that Obama was a total fraud very early in his Presidency. It was clear the moment he promoted two of the most destructive human beings in the nation to powerful financial and economic positions, Tim Geithner and Larry Summers. Well now we can add a new one to the list: Valerie Caproni.
http://libertyblitzkrieg.com/2013/09/09/meet-valerie-caproni-civil-right...
One thing I should have added is that we need a margin call of epic proportions on SLV and it's derp cousins. Show me the metal. I want delivery. Oh, you don't have any? You can't fill that order? Why? Because you were trading on credit digits? You were trading on shit you never even had? Now you want to offer me a 25% premium of paper bullshit to settle the call?
SHOW ME THE METAL!
Great post outamyeffinway - All that is needed is to follow your leads to find that these lawsuit are going NOWHERE under the criminal eye of U.S. District Judge Valerie Caproni. Read up on her history people!
Great post outamyeffinway - All that is needed is to follow your leads to find that these lawsuits are going NOWHERE under the criminal eye of U.S. District Judge Valerie Caproni. Read up on her history people!
Anyone else here remember when silver was $5.16 per ounce?
Yep. I do miss those days. I even have a few ounces in the $4.00 range.
Yes I do remember. I have set myself up to do trade in commonly known divisable units of silver as needed. I trust most of you have done the same.
So they consolidated all the suits into one. Now they can be thrown out with a single tap of the gavel.
So much easier this way. Do it on a Friday evening judge, but wait three years first.
.
nice avi
Why does the price of gold or silver need fixing twice a day? Does it really break that easily?
In a 24 hour world, why does it need any fixes? There always is a sale/buy going on somewhere....
It must be some math thingie that only banksters understand and not normal people.
Blah blah blah nothing is going to happen. Maybe they should try and find a judge outside of NYtelavivcity. I'm pretty sure the fix is in because if the court says the banks screwed everbody then every cash for gold outlet will be able to sue.
That girl with glasses is probably a freak in bed
At first she started out like wild fire but because of his penis, you tend to become uninterested.
Whitewash guaranteed
The banks have been accused of rigging the price of billions of dollars in silver to the detriment of investors globally.
Right, as savers have been raped by suppression of interest rates. Of course if these truths ever see the light of day in the public consciousness you can expect even worse. At this point they will double down on the repression instead of allowing the possibility the games come undone.
Ironically, when interest rates rise, they push PM prices down.
I'm absolutely sure that the perpetrators will get a BIG fine, and a Prison Sentence. sarc off.
I worry that a system that can manipulate the gold/silver price can manipulate the courts too.
Underneath their robes they are naked with only influence jewelry, gold and the JP morgan midget sucking their junk. But they'll play it fair.
Manhattan. Federal court. Joke
Quite possibly the first part of that manipulation I mentioned below.
We need more gas chambers.
Lets not forget Ted Butler who started all this
I miss the Hunt brothers.
/s
I'll miss these periodic "On Sale" gifts in the future. Oh well, I'll just have to reminisce about those past discount sale days...
Shes not hot enough for me to sit thru that entire interview. Yup, Im a pig.