Peter Schiff: JP Morgan Indictments Don’t Prove Gold Manipulation Conspiracy Theories

You have probably heard about the JP Morgan traders indicted in a gold and silver market manipulation scheme. The allegations involve “spoofing.” Traders put in buy and sell orders with the intention of canceling them before execution. By creating false impressions of demand, they could potentially move prices and cash in on their own trades. Meanwhile, JP Morgan has accumulated the most significant physical silver position of all-time.

Peter Schiff recently appeared on RT to explain exactly what’s going on.

Peter said if JP Morgan is buying silver, they’re doing the right thing.

I think silver’s price is going to go a lot higher.”

As far as the recent manipulation charges go, Peter said they do not vindicate all of the conspiracy theories alleging that there has been a concerted effort by big banks to artificially suppress the price of gold in order to keep the fiat monetary system going.

That’s not what these indictments showed. These are simple market manipulations in both directions where the goal was simply to make money. I mean, that is what’s happening here. They’re trying to rig the markets to make a profit. They’re not trying to stop the price of gold from going up. Sometimes they’re actually buying gold. They’re just trying to make money by having an unfair edge.”

Peter also pointed out that contrary to the assertions of the RT anchor, gold prices haven’t been going down.

First of all, you know, the price of gold went from under $300 an ounce in 2001 to almost $2,000 an ounce in 2011. So, if people were trying to suppress the price of gold, they were doing a pretty bad job because the price went way up.”

Of course, there was a correction and the price fell to around $1,000, but it has since rallied about 50% since then.

But yeah, I think the price should be a lot higher, but it’s not where it is because the manipulation. It’s a lack of understanding on the part of investors around the world of the real situation that’s going on economically. It’s too much trust in central banks and fiat money. But when that trust ultimately gives way — and it will — you’re going to see a rush to buy precious metals. It’s already happening now. The central banks are buying gold. It’s not going to be long before the investor class follows their lead.”

Peter was asked if we’re on our way to the destruction of the US dollar. He said we’ve been on that path for a long time.

In fact, it’s taking a lot longer than a lot of people might have thought, myself included. We’ve been able to keep this thing going. It’s a much bigger bubble. But yes, I mean if you could read the writing on the wall, it’s quite clear what’s going on. Most people are in denial, but those who aren’t are preparing. And even if you prepare too early, that’s fine because it’s much better than preparing too late, which means you’re not prepared at all.”