Chilton Blows Whistle on Ag Manipulators

Bart Chilton, Chairman, Commodities Future Trading Commission...and now whistleblower.

Looking at the metals market, you may have noticed the dramatic increase in the price of silver versus gold and other metals in the past year. Many attribute these gains to the uncovering of market manipulation that has been accomplished by the Commodity Futures Trading Commission chaired by Bart Chilton.

The CTFC has been engaged in an investigation of the practices of major market players for three years and recently Chilton testified before Congress on what he has found.

And the earth shook.

The fallout has included a recent announcement by JPMorgan Chase that they will be closing their trading desks. Some have speculated that the reshuffling will merely result in a variations on the same theme. One thing is certain, those who can – will. And those in the commodities game are nothing if not creative.

Speculation will continue to swirl around the affects Chilton’s efforts will have on the market. Some call for an increase to $30/oz for silver by the end of the year while others predict the market can bear an even greater increase.

You can learn more about the exploits of the man who is blowing the whistle in a recent article published by Bloomberg, an excerpt of which is below.

As an investigation of the silver market by the top U.S. commodity regulator entered a third year, a member of the Commodity Futures Trading Commission said today there have been “repeated attempts” to influence prices.

“There have been fraudulent efforts to persuade and deviously control that price,” said Commissioner Bart Chilton at a hearing today in Washington, alleging there have been violations of the Commodity Exchange Act. “Any such violation of the law in this regard should be prosecuted,” he said.

The five-member commission began investigating allegations of price manipulation in the silver futures market in September 2008. The CFTC said in a report that year that it had received “numerous letters, e-mails and phone calls” during the last 20 to 25 years alleging prices were being manipulated downward.