SPECULATORS looking to profit from falling Silver Prices have been squashed by a combination of rising prices and regulatory investigations, according to bullion-market analysts.
After two lawsuits alleging "manipulation" of prices were filed in late October, a new complaint was lodged this week against HSBC and J.P.Morgan banks – the world's No.1 and 2 physical Silver Bullion custodians respectively.
The suit alleges that US Comex futures prices are being "intentionally and unlawfully" – and compounding accusations from US regulator Bart Chilton of the Commodity Futures Trading Commission last week, "shorts in the market may feel under a little more pressure," says French bank (and London bullion dealer) Natixis in a new research note.
The US launch of a new physical Silver Investment trust-fund meantime added 680 tonnes of demand to the market, Natixis notes. The metal's sharp gains of the last 3 months meantime mean that "Many large speculative shorts out of China have been forced to stop out over the past several days," says a Hong Kong dealer.
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