I am no attorney, and therefore have no idea of the legal merits of this situation as a prospective case. This involves things like intent, motive and so forth. And I certainly could not advance such a case.
But the lack of transparency in these markets is not conducive to market efficiency.Â
Some have shown evidence they say that proves that it is the tech funds that set price, and that JPM is just ‘making a market.’ If this is true, then additional transparency on the part of JPM as a market maker would be perfectly reasonable to allay any doubts about the honesty and fairness of the markets for precious metals.Â
Considering the widespread rigging of key benchmarks and prices, I think to just dismiss these concerns with a sneer and a snigger to be unreasonable, requiring people to maintain an almost slavish belief in the integrity of the system.
Ted presents some of the facts in the contrary case, and I found them to be interesting. It is hard to believe that the London Fix is so corrupt, but the Comex, which is the major pricing platform, is pristine, since the players are playing across all global markets.
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Suing JPMorgan and the COMEX
Theodore Butler|
March 21, 2014ÂI’ve had some recent conversations with attorneys who were considering class-action lawsuits regarding a gold price manipulation stemming from reports about the London Gold Fix. I told them that while there is no doubt that gold and, particularly, silver are manipulated in price, I didn’t see how the manipulation stemmed from the London Fix. I wished them well and hoped that they may prevail (the enemy of my enemy is my friend), because you never know – if the lawyers dig deep enough they might find the real source of the gold and silver manipulation, namely, the COMEX (owned by the CME Group) and JPMorgan.
So I thought it might be constructive to lay out what I thought a successful lawsuit might look like, although I’m speaking as a precious metals analyst and not as a lawyer. I’ll try to put the whole thing into proper perspective, including the premise and scope of the manipulation as well as the parties involved.
The first thing I should mention is how unprecedented it is that I’m writing this in the first place. Here I am, directly and consistently accusing two of the world’s most important financial institutions of market manipulation (making sure I send each all my accusations) and I have received no complaint from either. I don’t think that has ever occurred previously. Now I am taking it one step further; presenting a guide for how and why JPMorgan and the CME should be sued for their manipulation of gold and silver (and copper, too)…
Read the entire article for freeÂ
here.
