Manipulation question...

30AnvZ28

So, I have a serious question. Keep in mind, I dont know how all the ETF's and stuff work... but this seriously worries me a bit with all the trouble the banks are in with physical shortages.

When they raised the silver and gold contract requirements (even by small amounts) it caused a HUGE ripple in prices.

What if they decided to raise those requirements from $6500 (or whatever they are at now) to say... $15,000? $25,000? $50,000?

Would that drive the prices of metals through the floor? Is this even possible? yes? no? What are the implications if they can or cant do this?

Please excuse my lack of knowledge on this if it is extremly obvious that this can or cant be done... or even better, if you can explain to me how all of this works... haha.

RedTiger

"They" can and they will if it suits their needs. However, for the most part, the futures markets want to maintain orderly markets and just get their small slice of vig on every bet placed. That said, when the exchange sees something that might disrupt their flow and their cash flow, they will do whatever it takes, including more extreme measures.

For the small fish, it is rather pointless to think about manipulation. The big fish disguise their moves, slime the trail with misinformation, set up small time fall guys with phony or real charges. The small fish can't accurately track the big fish. By the time the small fish finds out what is really happening, they are often eaten.

For example, if someone reads a story about Soros doing something, or taking a position, or unloading a position, odds are pretty good, that by the time the story is out, he is doing the opposite for at least a short time. Like they say about the casinos in Las Vegas, they didn't get built without a bunch of people losing money. Soros didn't make his mega-money without a bunch of little fish giving their money to him. Same for many of the other big fish.