Can The New Silver Fix End The Ongoing Silver Price Manipulation?
Gold Silver Worlds: The new silver fix is a fact since 17th August 2014. The silver fix has been a driver in setting the silver price in the last 117 years, but now a revised “fixing mechanism” with other “fixing members” is in place. Up until August 14th 2014, three institutions have been participating to the daily silver fix, i.e. Deutsche Bank AG, HSBC Bank USA N.A. and The Bank of Nova Scotia. In the new silver fix, the participating members are HSBC, ScotiaMocatta and Mitsui.
Before looking into the question what to expect from the “new” silver fix, it is important to understand what the “old” silver fix has done to the price of silver. Commodity analyst Dimitri Speck has focused his research on discovering silver price manipulation related to the silver fix, more so than the Gold Fix. Based on his extended statistical analysis around intraday average price patterns, he was able to pinpoint when exactly the manipulation (or, intervention) took place, and he provided the world unbiased charts. The next paragraphs focus on his findings; they are based on Dimitri Speck his book “The Gold Cartel.”
The book “The Gold Cartel; Government Intervention in Gold, the Mega-Bubble in Paper and What this Means for your Future” is written by commodity analyst and precious metals expert Dimitri Speck. It is one of the few “must read” books on precious metals with important investment insights for serious investors.
The key in uncovering the silver price manipulation is to analyze price patterns in three distinct time frames:
- Before 2010
- Between 2010 and April 2011
- After May 2011
In the period before 2010, the intraday average silver price chart clearly shows statistically significant anomalies. The first chart shows the intraday average price between August 1998 and 2011. The obvious observation is that a significant price break down has been appearing right at the silver fix, which is at 7AM EST (New York time). A second sharp decline is visible at 10AM EST, which is probably linked to the gold fixing, see below. The chart takes into account almost 13 years of data, it excludes every form of coincidence or randomness.
average intraday silver prices till 2010 show a visible intervention right at the timing of the “old” silver fix
Interestingly, the manipulation (or intervention) in silver is much more pronounced than the one in gold. The next chart shows a data set for a comparable period in time as the previous chart, but applied to gold.
average intraday gold prices till 2010 show a statistically less significant intervention right during the “old” gold fix
Dimitri Speck concludes in his book “The Gold Cartel”: “Contrary to the situation at 10AM EST, this decline cannot be ascribed to the high correlation with gold. The average intraday chart of silver shows that there are independent price interventions in silver that are not connected to gold.” Or, in plain simple words, silver price manipulation is obvious and much more outspoken than gold price manipulation.