Please read the CFTC’s release carefully!!! Too many articles on the web are incorrectly stating what was found or not found by the CFTC during its investigations. But the release doesn’t report any findings other than stating “Based upon the law and evidence as they exist at this time, there is not a viable basis to bring an enforcement action with respect to any firm or its employees related to our investigation of silver markets.” While it does not say that it found evidence of manipulation, it also does not say that it did not find any evidence. It only states that they investigated the situation, by numerous means and with over 7,000 staff hours.
This is important and very revealing. If there were laws in place that allowed certain entities to manipulate the market, the CFTC would not be able to bring legal charges against those entities even if it found the allegations of manipulation to be true. And, as Chris Powell of GATA has demonstrated, this is exactly the situation: The authority [of the government to interfere in any market] was given in the Gold Reserve Act of 1934, which established the Exchange Stabilization Fund in the Treasury Department.
If you’re going to invest in precious metals, you need to be consciously aware that you are betting against the solvency of the United States. The US government will indeed do all it can to defend its currency. But they are cornered. The western social-welfare/political-warfare state makes it necessary to debase the currency to keep everyone fat, dumb and happy. Currency debasement techniques have been tried repeatedly throughout history, yet have always failed. However, if the government can cast an illusion of prosperity, they’ll stay in power long enough to squeeze every last drop of real wealth from citizens. That illusion remains in place today as all markets are either propped up or capped in order to keep everyone thinking everything’s fine.
The ongoing saga of precious metals market rigging is documented here.