Precious Metals Trader Blows Whistle on Market Manipulation

Many people in the precious metals (PM) market have long suspected market manipulation by JP Morgan and other large banks. These firms have allegedly been keeping down the prices of gold and silver. I personally believe there is more manipulation on the silver price because of the many industrial applications of silver; however, it would not surprise me if both markets were heavily manipulated.

Today, Andrew Maguire, a former Goldman Sachs trader blew the whistle on gold and silver price manipulation. According to an article by Michael Gray of the New York Post, Maguire explained JPMorgan's role in the metals pits in both London and the US, and how they can generate a profit either way the market moves. Of course JPMorgan denies the allegations and says that no one in the firm is familiar with Andrew Maguire.

Despite gold's rise each of the last 10 years, Bill Murphy, chairman of the Gold Antitrust Action committee believes the price of gold today would be closer to $2,300 an ounce if the price just moved with inflation, but Maguire believes the price should be even higher given the fear trade that would have sent prices spiking during the financial crisis in 2008-09. Both PMs have seen a recent spike since Maguire's e-mails became public

According to e-mails that Maguire sent to Commodities Futures Trade Commission (CFTC) regulators, he was uncannily accurate in his predictions of how the PMs would trade on release of the January jobs report. Maguire stated that The prices of gold and silver have been allegedly suppressed by JPMorgan and HSBC. Maguire laid out the banks’ plan in e-mails to the CFTC prior to trading on the Comex on Feb. 5, 2010 by contacting the CFTC via e-mails. On February 3, 2010 he sent an e-mail giving them a heads up for a manipulative event signaled for Friday, Feb. 5th, 2010. Then, on the 5th, Maguire sent an e-mail to confirm that the silver manipulation was a great success and played out precisely as he had predicted.

To read the Post's article in it's entirety go here.