Florian Grummes, 30 April 2021
Market manipulation is as old as the market itself. From arbitrage to front running, from pump and dump to cornering the market. But every imbalance will close at some point, and every front runner gets front-run by faster competition himself, eventually. In the case of Silver (XAGUSD:CUR) and its exposure to spoofing practices of various market participants, the principle is the same. The truth will prevail.
Now, how do these men in charge manipulate the markets precisely? Our findings show that one can see almost infinite creativity to manipulate the investor. You hear endless stories about the use of Silver in green energies. Fact is that we have only 2% of battery-used vehicles in place in the auto industry. Only 5% of green energy based on solar panels using Silver is at present opposing 95% of traditional energy production. So we are talking about long-term projections that are already reflected in the current price speculation.
When it comes to industrial use, numbers are more transparent. Still, few see the cycle push back. As soon as silver prices rise, the industry walks away from intense Silver usage. Rather it economizes or uses alternative ways to produce their merchandise. Here we have a near self regulative counter mechanism from the influences of investor-driven price spikes kept Silver mostly range-bound.
What is recently often spoken about is spoofing
While it is true that this method of price speculation, a way where laddering prices and volume distribution manipulate order presentation into the depth of bid and ask, can drive prices artificially, this way of market manipulation is affecting markets only short-term. Meaning you might have found yourself in the less liquid times of the day feeling awkward trading since the bid-ask spread behavior is uncommon. And yes, this can affect stop levels and cause difficulties for order execution.