JPMorgan is under fire once again as allegations of market manipulation resurface following a dramatic plunge in silver prices. The precious metal saw a staggering 32% drop in just two days, resulting in a loss of $25 trillion in market value, prompting a closer examination of the bank's trading activities. The analysis suggests that the situation is causing growing concern.
Concerns Over JPMorgan's Trading Practices
The recent crash has raised significant concerns regarding JPMorgan's trading practices, particularly its issuance of 633 February silver contracts during the market downturn. This has led to renewed scrutiny of the bank's long-documented history of manipulating precious metals, which previously resulted in a hefty $920 million fine from the US Department of Justice and the Commodity Futures Trading Commission (CFTC).
Market Analysis of the Crash
Market analysts attribute the crash to forced liquidations among leveraged traders, suggesting that the sell-off was not driven by a fundamental supply issue. Interestingly, physical silver prices in Shanghai have remained higher than US futures, indicating that the collapse was largely a result of paper selling rather than a reflection of actual market conditions.
Amidst the recent turmoil surrounding JPMorgan's trading practices, new allegations have surfaced regarding potential insider trading on Coinbase. For more details, see insider trading.
