By Michelle Smith - Exclusive to Silver Investing News
The sharp declines of precious metals on February 29 was largely associated with the Federal Reserve's failure to give indication of another round of quantitative easing. However, an alleged employee of JP Morgan Chase reportedly offered the Commodities Futures Trading Commission (CFTC) an alternate explanation. The individual claims his employer was involved in orchestrating the price declines, which raises the question of whether events are such Fed speeches and jobs reports serve as masks for silver manipulation.In an open letter that Global Securities says was posted on the CFTC website, a person claiming to work for JP Morgan Chase accuses the the firm of “inherent and fraudulent commodities manipulation.” “We are manipulating the silver market and playing a smaller (but still massively manipulative role) in manipulating the gold futures market,” he said. The whistleblower claimed JP Morgan Chase forewarned employees in December that it was going to be a dismal year in terms of earnings and they should not expect bonuses or raises, but in mid January, he says staff members received bonuses and/or raises anyway. This sudden change, he says, occurred around the time the firm started making significant increases in its short positions. “This most recent crash in gold and silver during Bernanke's speech on February 29 is of notable importance as we along with 4 other major institutions, orchestrated the violent $100 drop in gold and subsequent drops in silver,” the whistleblower's letter says. Since the individual wrote anonymously, the validity of his employment or the claims have not been confirmed. However, silver manipulation is an issue that will not die and JP Morgan is firm that is commonly considered a poster child of these practices.