Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Precious Metals Manipulation & Physical Investment

  by    0   0

The US Justice Department has begun to investigate whether 10 of the world’s largest banks have manipulated gold and silver prices. The Justice Department is just the latest in a series of financial regulators to investigate possibilities of precious metals manipulation, including the UK Financial Conduct Authority, Germany’s BaFin, and Switzerland’s competition commission WEKO. On top of that, there are a number of pending civil lawsuits in New York against some of these same banks for gold price rigging.

What should physical gold and silver investors take away from this news?

14 10 22 Swiss gold

First, the allegations seem to be over short-term manipulation of gold and silver prices. For instance, take the 2012 case against Barclays for failing to prevent one of its traders from manipulating the gold price. In this situation, it was a single Barclays trader who “fixed the price in order to avoid the payment of $3.9 million to a customer under an option, which boosted his own trading book by $1.75 million.”

The client was compensated, and Barclays was fined. The media focuses on this judgment as a reason for why further manipulation investigations are warranted. But remember – this case transpired on a single day in order to fool one investor who was transacting millions of dollars worth of gold.

Physical precious metals investors should not take this as a cue to run from the market. Gold and silver bullion should be long-term investments in your portfolio. The fundamental reasoning for an ongoing bull market in precious metals does not fall apart because some bankers may have temporarily rigged the price on a single day to boost their trading books.

These sorts of financial hijinks cannot halt the devaluation of paper money by central banks around the world. Negative and zero-percent interest rate policies combined with massive money-printing in nearly every developed nation may destroy the value of currencies and eventually trigger inflation. In such an environment, precious metals remain one of the few safe-haven assets for protecting your purchasing power, regardless of their short-term, day-to-day price.

If anything, these investigations and the recent overhaul of the London Gold and Silver Fixes are only making the precious metals market more transparent. This might mean additional gains for physical investors who bought gold earlier, but shouldn’t dissuade investors from buying into the market today. More importantly, it may even expand investor demand for precious metals as they gain confidence in the security of the market.

Get Peter Schiff’s latest gold market analysis – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning more about physical gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

The End of Japan’s Negative Interest Rates: What It Means for Gold

The Bank of Japan’s historic move to end the country’s negative interest rate policy after nearly two decades triggered a jolt upward to new all-time highs for gold against the yen. But what are the implications for gold in the medium and longer term? The answer is far from simple. 

READ MORE →

The BLM’s Quiet War on Precious Metals

The Bureau of Land Management is a federal agency that controls 245 million acres of land and controls 30% of the country’s mineral resources. On the East Coast, it manages little land but manages an enormous share of Western states. It owns over two-thirds of Nevada. This gives the federal government enormous sway over the West. Want […]

READ MORE →

PIMCO: The Fed Needs More Unemployment

Analysts at PIMCO say that for the Fed to reach its goal of lowering inflation to 2%, we need fewer people to be employed. Reduced incentives to offer raises and bonuses and less spending from the “resilient” American consumer can help cool down inflationary pressure. But there’s an elephant in the room: Why do we let a […]

READ MORE →

Junk Bond Default Surge Continues in 2024

Consumers aren’t the only ones defaulting on their debts: Corporate bond defaults were up massively in 2023, especially for high-risk junk debt, and the trend is continuing this year at a pace not seen since the 2008 global financial crisis. Unsurprisingly, companies selling low-rated junk debt are being hit the worst.

READ MORE →

Bankruptcy Laws Plus Inflation Equals Scam

At the end of 2022, investors all around the world who had bet big on cryptocurrency and had their cryptocurrency stored by the crypto exchange, FTX, received bad news. Sam Bankman-Fried and other leaders of the exchange had been using cryptocurrency that was supposedly stored by the exchange to make bets on financial markets. And the […]

READ MORE →

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Call Now