A recent investigation provided conclusive proof that precious metals have been (and still are) manipulated:
Deutsche Bank Records Said to Show Silver Rigging at Other Banks - Bloomberg, December 7, 2016
This site didthesystemcollapse.com compares the gold and silver prices on the London Bullion Market and the Shanghai Gold Exchange.
Definition: Arbitrage is the simultaneous purchase and sale of an asset to profit from a difference in the price. It is a trade that profits by exploiting the price differences of identical or similar financial instruments on different markets or in different forms. Arbitrage exists as a result of market inefficiencies.
From today's market activity, there is a significant spread between both the London and Chinese gold prices and an astonishing spread in silver prices.
As of 2:00 PM EST, the Shanghai Gold Exchange is offering 4.3% higher gold price and 12.4% silver price.
What this means is a trader can buy silver on the London Bullion Market at $15.93 and immediately sell on the Shanghai Exchange at $17.91 and make an immediate 12.4% profit.
In light of deterioration of the Chinese yuan (USD/CNY = 6.937),
large inefficiency in the markets such as this are an ominous sign.
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