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While there isn’t lots precedent for what’s taking place in crypto markets because the choices asset class is still new, there is a precedent for binary signals, Suggested Reading, futures being used to distort rate discovery and manage prices in any other marketplace: treasured metals.Precious metals markets have lengthy in view that been problem to manipulation through big banks. Several banks have admitted wrongdoing and confronted fines for manipulating gold prices. Many consider that the choices prices of gold and silver were saved artificially low thru the use of leveraged paper contracts.Dr.      Paul Craig Roberts, the former economic consultant for the Reagan administration, has written appreciably about this subject.In his view, some of the most important banks within the world had been operating to suppress the choices fee of gold in Western markets for many years. They accomplish this thru developing so-called "bare shorts" out of thin air (the choices time period vapor settlement time period we’ve been the usage of is analogous to a bare brief).A naked quick is absolutely a settlement that allows an group to region a sell order for a particular asset without having any ownership of the asset.In other words, it permits a bank to flood the marketplace with fake promote orders, growing downward market pressure.      Given that banks can create those shorts to the moon without any accountability, they can preserve the choices rate down at a level more or less of their deciding on for pretty some time.The charge of gold is determined by paper exchanges that are not immediately tied to the real deliver/call for dynamics of physical gold.Dr. Paul Craig Roberts explains:"The number one venue of the choices Fed’s manipulation activity is the choices New York Comex trade, in which the arena trades gold futures.      Each gold futures contract represents one gold one hundred ounce bar. The Comex is known as a paper gold alternate because of using these futures contracts. Although numerous huge international banks are buying and selling contributors of the Comex, JP Morgan, HSBC and Bank Nova Scotia behavior the majority of the choices buying and selling extent."While the ones of us in America commonly take a look at the COMEX charge whilst searching at the choices cutting-edge rate of gold, there can be even more to the choices story:"In addition to the choices Comex, the Fed additionally engages in manipulating the rate of gold on the choices far bigger–in phrases of general dollar cost of trading–London gold marketplace.      This marketplace is known as the choices LBMA (London Bullion Marketing Association) marketplace. It is created from numerous large banks who are LMBA marketplace makers referred to as "bullion banks" (Barclays, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JPMorganChase, Merrill Lynch/Bank of America, Mitsui, Societe Generale, Bank of Nova Scotia and UBS).""The Fed’s gold manipulation operation includes exerting forceful downward pressure on the choices fee of gold via promoting a massive quantity of Comex gold futures, which might be dropped like bombs both on the Comex ground throughout NY buying and selling hours or via the Globex gadget.