Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Rat dog micro-cap picks... -- Ignore unavailable to you. Want to Upgrade?

To: ~digs who wrote (37882)	9/25/2008 11:15:40 PM
From: Bucky Katt	1 Recommendation Read Replies (1) \| Respond to of 48461

Silver investors are embracing the news that regulators decided to take a fresh look at the market. Yesterday, the Commodity Futures Trading Commission confirmed to the Wall Street Journal that the division of enforcement is conducting an investigation into the silver markets. “We take the threat of manipulation in the futures and options markets very seriously and employ a number of measures to prevent, identify and prosecute it,” said Stephen Obie, acting director of the agency’s division of enforcement. For many years, silver bulls have said that prices are being artificially depressed downward, citing the CFTC’s data showing that a handful of U.S. banks have controlled a large portion of short positions in the market. Regulators and analysts have not been persuaded. In 2004, the agency published an open letter to silver investors by Dr. Michael Gorham, the former director of market oversight who now teaches at the Illinois Institute of Technology, Dr. Gorham this week recalled what triggered him to write the open letter. “Over one weekend, I received over 200 emails from individuals, everyday people who have been convinced to invest in silver” by silver commentators. “I was angry because these guys were losing money, and then when it didn’t work out, they blamed it on conspiracy,” he said. In the letter, Dr. Gorham responded to the argument raised by investors by analyzing market movements, silver fundamentals and large traders’ positions. “I really felt this very large group of people was misled by” these commentators, Dr. Gorham said. Silver companies also have gotten an earful from investors lately. Several firms retained CPM Group to conduct research on the market. The email campaigns have become “a giant distraction for silver companies,” said Jeff Christian, managing director of CPM Group. Last week, CPM made a video called “WHAT Silver Price Conspiracy? An Educational Explanation.” Says Mr. Christian: “You need to provide a coherent argument that says these are the reasons that one should ignore these ongoing comments.” Permalink \| Trackback URL: blogs.wsj.com