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Gold/Mining/Energy : Silver prices -- Ignore unavailable to you. Want to Upgrade?

To: PaulM who wrote (1211)	6/1/1998 12:58:00 PM
From: Ray Hughes	Read Replies (1) \| Respond to of 8010

Paul, Metals markets have a long history manipulations, long or short side. Sometimes what appears manipulative is an innocent result, the normal behavior of a an inventory buildup being unwound. So between outright manipulation and normal behavior the metals markets frequently seem to be manipulated. The recent world economic boom had induced opportunistic inventory building and, separately, manipulative long hoarding. Sudden monetary distress in Asia clobbered those holding the inventory, either from shrinkage of capital and the need to liquidify, or due to outright cancellation of business. Traders in China had been said to be major players speculating on metals demand and price increases by building inventory. At first that reduction of available supply spurred prices. Subsequently, they are said to have dumped, first copper then other base metals, much to the detriment of prices. The net result is that in recent months there has been massive selling by actual users, speculators and traders. The large volume of selling looks like manipulation. Add to this, then, adroit pure speculators that reasoned that demand for metals would drop, that inventory loans would be called, etc. and who reasoned that this had the makings of a good short. The markets have been hit by good and well founded economic fundamentals of a negative character plus opportunistic selling. The longs, often unable to acknowledge the reversal of fortune, feel that everyone is ganging up on them. The whole metal market seems to be manipulated when you're losing your shirt. Regulators try to stop the more blatant manipulation but the really clever guys almost always beat the bureaucrats. Perhaps its a sign of, and the price for, a free society when real brains don't want to be bureaucrats. RH