CFTC Ends Five Year Investigation of Silver Market

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According to CFTC.gov, the Commodity Futures Trading Commission (CFTC) has closed its investigation on the silver market after five years. While the CFTC normally keeps a tight lid on its investigations, it has decided to announce this finalization publicly due to the amount of time that has passed since the investigation was initiated.

The CFTC’s department of enforcement began its investigation of the silver market in September 2008, after accusations of manipulation in regards to silver prices in the Community Exchange (COMEX) were made.  Among these accusations, it was speculated that manipulation of futures trade prices had occurred, based on the assumption that as prices for silver products, such as coins and bullion, rise, prices in silver futures contracts should rise as well.  Yet, futures contracts for silver remained stagnant during times of spiking silver prices. This inconsistency was thought to be due to large shorts in the silver market keeping futures contracts lower than normal.

The investigation was undoubtedly thorough, consisting of over seven thousand hours spent analyzing position and transaction data as well as the evaluation of silver market fundamentals for futures trading, among other areas of the silver market. During the Commission’s investigation of past records, the Division of Market Oversight maintained ongoing surveillance of the silver market, monitoring transactions for any signs of possible violations of the Commodity Exchange act.

After five years of deliberation, the CFTC has decided to end its investigation, declaring there to be no reasonable evidence to take enforcement action upon anyone involved in the silver market.