Storied investor and financial author Stephen Leeb alleges that major hedge funds have engaged in concerted efforts to manipulate precious metals markets.
Speaking to King World News Leeb reported an incident in which a friend witnessed the head of a leading hedge fund issuing orders to staff to engage in willful manipulation of the market:
…the instructions the head of the hedge fund was giving to one of his traders was, “Sell it, and sell it stupid. And make sure people just don’t know where the selling is coming from and why it’s coming.”
According to Leeb there is a “tremendous vested interest” in maintaining the dominance of paper fiat money, which is the underlying motivation for efforts on the part of major hedge funds to manipulate the price of gold by means of selling which is contrary to market logic.
Leeb nonetheless feels that the efforts of market manipulators are doomed to fail against such a positive environment for precious metals, noting that gold remains up year-to-date.