Manipulation of the gold price

The Swiss regulator Finma confirmed that it found irregularities on the gold and silver markets by employees of the Swiss banking giant UBS, another step in the fight against the manipulation of precious metals. Earlier this year, the British Barclays was also found guilty regarding irregularities on the precious metals markets. Finma’s investigation is part of a larger investigation into manipulation of the financial markets in general.

Electronic messages between traders played an important role in the investigation, says Finma. The traders were profiting from their own transactions by completing orders for clients. UBS was convicted earlier together with 5 other banks for influencing the currency markets. The investigation showed that there were comparable transactions on the gold and silver market.

The End Of Manipulation In Precious Metals?

There are also clear signals on the gold and silver market with regards to the price fixings of these precious metals. The investigation into this matter looked at the period of 2008-2013.

The Swiss bank is going to get a $139 million fine and the bonuses of the traders in question will be capped at 200% of their 2 year basic salary. For irregularities in the currency markets, the fine will amount to $800 million.

It is only getting clearer that there are unwarranted actions happening on the gold and silver market. If the banks will be cornered and have to cover their short positions, it will create a big upward push for both precious metals and related investments like gold mining stocks.

 

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