Feds Target 10 Big Banks for Possible Price Rigging in Precious Metals

Better Investing

What's Hot

23 Upgrades Under $50 to Make Your House Look AwesomeAround The House

Trump Worth $10 Billion Less Than If He’d Simply Invested in Index FundsBusiness

Do This or Your iPhone Bill May SkyrocketSave

19 Moves That Will Help You Retire Early and in StyleFamily

11 Places in the World Where You Can Afford to Retire in StyleMore

What You Need to Know for 2017 Obamacare EnrollmentFamily

The 35 Two-Year Colleges That Produce the Highest EarnersCollege

5 DIY Ways to Make Your Car Smell GreatCars

8 Things Rich People Buy That Make Them Look DumbAround The House

50 Ways to Make a Fast $50 (or Lots More)Grow

32 of the Highest-Paid American SpeakersMake

Amazon Prime No Longer Pledges Free 2-Day Shipping on All ItemsMore

5 Reasons a Roth IRA Should Be Part of Your Retirement PlanGrow

More Caffeine Means Less Dementia for WomenFamily

7 Household Hacks That Save You CashAround The House

30 Awesome Things to Do in RetirementCollege

Beware These 10 Retail Sales Tricks That Get You to Spend MoreMore

At least 10 major banks are being investigated by the U.S. Justice Department for alleged manipulation of the market for gold, silver, platinum and palladium.

At least 10 big banks are facing a probe by the U.S. Department of Justice and the Commodity Futures Trading Commission for allegedly rigging the prices of precious metals.

According to The Wall Street Journal, DOJ prosecutors are looking into the process used to set prices for gold, silver, platinum and palladium, while the CFTC has opened a civil investigation.

The government is scrutinizing HSBC Holdings PLC, Bank of Nova Scotia, Barclays PLC, Goldman Sachs Group Inc., Credit Suisse Group AG, J.P. Morgan Chase, Standard Bank Group Ltd, UBS AG, Societe Generale SA, and Deutsche Bank AG.

The WSJ said:

The precious-metals probes are the latest example of regulatory scrutiny into how the world’s biggest financial institutions influence widely used benchmarks. Until last year, prices for gold, silver, platinum and palladium were set using a decades-old practice of once- or twice-a-day conference calls between a small group of banks. The process for setting each of the price “fixes” has since been overhauled.

The price benchmarks impact the price of jewelry, as well as financial products such as exchange-traded funds, the WSJ reports.

Precious metals have value for reasons that are based in history and psychology as well as utility. Gold continues to be viewed as a medium for preserving wealth, though it is also an excellent conductor, according to Hard Assets Investor.  Silver has a wide array of industrial uses, including water purification, electronics, solar panels, medical devices and batteries, it said. Platinum, like silver and gold, is used in jewelry, but the bulk of it is used in industry.

According to Reuters, German regulator BaFin recently conducted a similar investigation but didn’t find any benchmark price manipulation in precious metals.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!


Read Next: Obama to Wall Street: It’s Time for Honest Financial Advice

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,712 more deals!