Gold and Silver Manipulation: Can It Be Verified?

Submitted by Mark O’Byrne  –  GoldCore

Dr Brian Lucey, Dr Jonathan Batten and Dr Maurice Peat have just published some interesting research looking at the thorny issue of whether there is manipulation of gold and silver prices.

In their paper “Gold and Silver Manipulation: What Can Be Empirically Verified?”, they examine the issue of “gold and silver price manipulation, in particular price suppression.”

gold_manipulation

Source: Gold and Silver Manipulation: What Can Be Empirically Verified? – SSRN

Their research, to be found on the Social Science Research Network (SSRN) website, is not conclusive:

“Do these findings clearly support the notion of price suppression? No. They are at best suggestive,” said authors, Brian Lucey of Trinity College in Dublin, Jonathan Battena of Monash University in Australia, and Maurice Peat of the University of Sydney Business School.

The study highlights contract expiration dates as the likely time for price manipulation or suppression. The researchers said they noticed large spikes in returns around the last three days of each month, which is typically when futures and options contracts expire.