Silver prices fell in mid-January after talk that New York lawyers were
considering a class-action lawsuit against a group allegedly hoarding supply
to drive up prices, news sources said.
High prices in the silver market have been attributed to soaring demand
for use in photography, jewelry and manufacturing. But many traders believe
some banks and hedge funds have been taking advantage of the demand to justify
higher prices, Reuters reported.
One group is rumored to be hoarding silver in warehouses to drive up
The attorneys involved in the case said a lawsuit was not eminent and
that any action would be based on the Commodities Exchange Act. Officials
at the Commodities Futures Trading Commission, a Washington regulatory group,
would neither confirm nor deny rumors that it was investigating possible
manipulation of silver prices.
- by Stacey King
Copyright © 1998 by Bond Communications.