Silver Price Sees Some Gains As News Of Potential Rigging Makes Waves

Friday, December 9, 2016

Fine Silver

Eight months ago, Deutsche Bank AG settled a lawsuit that had claimed there was rigging going on in the silver market. Now, as Bloomberg reports, there is “smoking gun” proof that this was indeed going on in subsequently released documents.

According to the plaintiffs in the case, the market was rigged when traders and submitters would coordinate their trades in advance. According to these plaintiffs, the new information about silver market rigging even exceeds their initial claims about what was going on.

What has happened with silver prices this week with the news that the markets were allegedly rigged in the past? Let’s take a closer look.

Silver Price Shows Well On Wednesday

The March COMEX silver was up to $17.24 an ounce yesterday, up 43 cents, according to Forbes . This may suggest that silver has found a bottom. With the recent news of potential silver price rigging in the markets, those who are optimistic about silver may find a lot to be happy about, especially if they own a lot of the precious metal themselves.

Yesterday saw high moves in the Dow Jones Industrial Average, and today’s early morning results have shown modest losses for both gold and silver. But with silver over $17 again, there may be cause for optimism even with stock markets at their highest points in history.

As Forbes noted in the same article, there is some waiting going on in the markets as investors want to know the results from the Thursday meeting of the European Central Bank. This will come on top of the coming potential changes from the Federal Reserve, which will hold its FOMC meeting next week.

What To Make Of The Silver Prices As They Are

Have we seen a bottom in silver and gold prices, or is there more room to move downward? There may be some minor resistance at the bottom of these prices right now. However, with too much economic news left in the year, it’s too difficult to say definitively whether prices have truly hit their bottom.

DailyFX.com noticed only two days ago that while silver has seemed to outperform gold in recent days, the truth is that silver still seems “bearish.” Even so, it sees that a “strong push” into the mid-$17 range would “flip the script.”

Watching The Markets For Silver News

Silver news tends to go hand in hand with gold news…with the exception being articles like the Deutsche Bank AG story we see in the news today. But there’s more to watch for investors who are interested in silver, including the ECB and the Federal Reserve meeting next week. Knowing what to make of all of these signals is the trick, of course.

While gold prices have gone down a lot, silver is still holding much of its advantage in the market. There is potential that investors are seeing more opportunity in silver than gold right now…thanks to downward pressure from the US dollar’s strength. Even so, silver remains an intriguing investment for 2017 and beyond.

FREE Silver Phoenix 500 Newsletter!

  • Fresh insights on the Silver market and the economy
  • Leading authors from around the world
  • FREE
  • Stay informed!!

Darren Capriotti

Darren Capriotti has been a market analyst for the past decade and is an expert in precious metals. He prides himself on his ability to analyze the market and offer true value to investors with questions about gold, silver, and other precious metals. Highly educated, incredibly passionate, and more accurate than most, Darren offers a true, unbiased look into what investors can expect in the precious metals market. You can reach Darren at dcapriotti@gold-eagle.com.