Financial services firm, J.P. Morgan (JPM), faces yet another lawsuit for allegedly manipulating the silver price after managing to keep out of this particular limelight for quite some time. However, they have now been caught out once again.
While most companies and individuals would be somewhat distressed at this news, it is possible that J.P. Morgan (JPM) will simply file the news in file thirteen, the trash can. That said, it is important to note that this is a class action. The fact that the plaintiffs are not named individually only serves to inform us that the U.S. Commodity Futures Trading Commission (CFTC) is merely going through the motions. They have to investigate all allegations of price manipulation in commodities such as silver and gold.
These lawsuits are always interesting as they entertain people by divulging the techniques that companies use to manipulate the silver price. Needless to say, there are a lot of shenanigans going on as it does not help to have parties that are partied to the manipulation heading up the investigation. It is believed that the regulator is party to the silver market manipulation and will not release tangible evidence.
The question begs why the plaintiffs are filing? Although not ideal, when the silver price is downward manipulated, it is cheaper to buy silver as the silver price is lower. The other point is that even in spite of silver price manipulation; prices always correct themselves in the end and end up at market-related prices.
The plaintiffs should surely be grateful, at least to some extent, for the fact that the silver price is lower. Investors should be aware of this fact and take advantage of the situation instead of whipping themselves up into a frenzy about something that actually works in their favor. Yes, many of those trading in and holding paper silver have a legitimate case, because their paper profits get wiped out each time the likes of J.P. Morgan interferes in the market. This is why Silver Bullion advocates that investors should buy and store physical silver and avoid paper silver like the plague itself, because there is very little the likes of J.P. Morgan can do to diminish the value of physical silver, especially when stored away from long fingers and prying eyes. An investor certainly doesn’t have to be rich in order to acquire or accumulate physical silver, certainly not at silver price levels of around $30 per troy ounce. It is a pity that the majority of investors are still hell-bent in their search for illogic and unreasonable excuses not to acquire or buy physical silver. Needless to say, the later they join the party, the more they stand to lose in terms of monetary wealth.
HSBC holdings were also filed against along with J.P. Morgan. However, a few days later, charges against HSBC were dropped. Between 2010 and 2011, there were 43 complaints against banks for illegal manipulation of the silver price. This was exacerbated by the massive short positions that were amassed on silver futures and options contracts.
HSBC managed to get out of the suit by arriving at a “tolling agreement” with the plaintiffs. It is a mystery why HSBC would have entertained such an agreement as it allows plaintiffs more time to claim without fear of the statute of limitations coming into play. There is no explanation as to why HSBC agreed to this as both parties remain tight lipped on the matter. Rob Sherman, spokesperson for HSBC, refused to comment on the matter other than to say that they would continue to use all legal channels and resources at their disposal to defend their position. Lawyers for the investors would not offer any comment on the matter.
The complaint against J.P. Morgan has been amended to triple damages and class-action status for supposedly violating antitrust agreements. J.P. Morgan is accused of faking trades that would cause drastic silver price swings at a time when market activity was decidedly thin. The spokesperson for J.P. Morgan denied that this was the case and added that the allegations “were without merit.”