John Edmonds, 36, said that from 2009 through 2015 he conspired with other J.P. Morgan traders to manipulate the prices of gold, silver, platinum and palladium futures contracts on exchanges run by CME Group.
"Edmonds said that from 2009 through 2015 he conspired with other J.P. Morgan traders to manipulate the prices of gold, silver, platinum and palladium futures contracts on [CME Group exchanges]."
Dimon's too busy hating BTC to monitor spoofing. https://t.co/7QvJRUNQk7
Pretty much all of us have known this. So while they were casting financial spells to contain the precious metals spirits, we had a great chance to buy silver and gold for a lesser amount of dead presidents that those metals are actually should be worth. It's been a loooooong black friday ;)
I kind of feel sorry for the guy but not the banks. He was probably just doing what he was taught from his management. This has been going on for a long time, the whole commodities trading needs an overhaul. It needs to be based on physical assets not IOU “paper silver”.
He’s an adult. Those who break the law due to pressure from their job are no better than those who do it for other reasons. We have whistleblower laws to help them. He made his choice for personal gain.
Hopefully his plea is just the tip of the iceberg for the investigation, as the article implies.
So does this all mean that SLV is more or less likely to be backed by real silver (since JPM is the custodian)?
*If* JPM was engaged in widespread fraud, what’s to say that it would stop at paper manipulation? They could be double-dipping and secretly selling off their silver. On the other hand, they could have sold their physical at the market high and then replenished it by pushing down the price. Or this whole thing might not be a conspiracy and just be a unit of traders who got extra greedy. Speculation abounds!
In any case, presumably JPM has enough wealth to pay back SLV investors if they were found to not have the physical stuff, so I can’t see SLV as being risky.
I don't believe this has anything to do with real physical silver. It's all done with computers. The paper market as it's sometimes called. I used to follow this fairly closely but I got discouraged after nothing was done to the JP Morgan traders even though the evidence was overwhelming. eg: Blyth Masters was a woman trader, crooked as hell, for JP Morgan. I believe that the physical silver JP owns is leveraged out multiple times. Meaning they can produce more paper shares or sell paper shares at will. ( search Naked Short). There is an old you tube series which is cartoonish that explains this pretty well. The characters in the video series are cartoon bears but the content of the videos is pretty good.
I used to bang this "manipulation" drum pretty hard many years ago. As I said, I just got worn out.
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This is some really cliche, obvious common sense shit, but they gotta start jailing the senior people for this. Instead of just nailing the foot soldiers or fining $1m on a multi-billion bank (LOL).
People are greedy, fínance openly idolizes mild sociopathy, and Hard Religion is dead. Top guys are gonna keep doing this until they themselves get jail time, or the system breaks down from too much gaming.
And they wonder why there's a populist rebellion all across the West.
Hey now, he forgot to disclose his villa he had in France, you really expect him to remember something as trivial as “insider trading is illegal mkay”.
Ahh who am I kidding. He knew he’d get nothing more than a slap on the wrist. He didn’t give a fuck.
Futures market, not the actual market. That's a crucial distinction. JP Morgan isn't carpet bombing silver mines. They're goosing futures contracts.
Now, do future prices affect the current prices? It's interesting discussion, although I'm not sure anyone on this sub is qualified to give a decent response.
The only thing that depends on the product is how strong the relationship is. If futures are a lot higher than spot, you sell futures and buy the actual commodity and hold until delivery. The most the spread can possibly be is the cost of holding until delivery otherwise an arb sets up. The relationship isn't as strong the other way, but if futures are very low then the spread would be the cost of going without until delivery.