D.C. Resident Sues Gold & Silver Bullion Banks

Washington, D.C. resident J. Scott Nicholson has filed a lawsuit against gold and silver bullion banks Bank of Nova Scotia, Deutsche Bank and HSBC for what Nicholson calls years-long manipulation of the silver market. Nicholson’s suit, filed in the Southern District of New York, seeks class-action status.

Class-action suits have been brought against banks in the past for alleged manipulation of the gold spot price, and Nicholson’s suit aims to cast a shadow over the physical silver market. The silver spot price is down $0.01 (0.02%) for the day, down $0.31 (1.49%) in the last 30 days, and up $0.71 (3.58%) in the last 365 days.

The five London gold fix banks have been sued multiple times in recent months, thanks to public allegations of gold price manipulation. All five banks have denied the accusations. None of three banks named in Nicholson’s lawsuit have commented.

The U.S. Commodity Futures Trading Commission (CFTC) initiated a five-year probe of the world’s largest banks after allegations of silver futures price manipulation went viral, but that organization’s probe ended recently, and no charges or fines were meted out.

Critics of the price fixing process, which requires a conference call between the largest gold and silver banks, have said that investors should be wary of getting into the gold and silver markets for short-term profit, as the metals’ prices tend to be extremely volatile. “Lots of advisers are recommending physical gold and silver exclusively because even if the price drops you still have something tangible in your hands,” said spokesperson Maria Martin. For a full report on gold and silver prices as well as special offers on physical gold and silver, call today at 800-394-3337 or request our free mail-out brochures below.

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