Are there any manipulators or market makers in the gold market? Gold speculators, brokers, and gold companies are adamant that they do not. Is this really the case?
In theory, it's true that in a market of hundreds of millions of dollars, this possibility is very low. No matter any institution can have such huge capital power to manipulate the market, and its transaction is basically electronic operation, so the risk of taking a seat is very high.
However, this is only a theoretical analysis. These two basic can not be used as the reason why the banker does not exist.
First of all, the existence of a banker has nothing to do with the size of the fund itself. In some small markets, the transaction is perfect, and there is no mechanism of manipulation by the banker. For example, in the gambling industry, the profit opportunities of all kinds of investors are average. On the contrary, in large-scale markets, such as the futures market, its speculative mechanism has created a large number of complex short selling mechanisms, and some influential bankers, such as Goldman Sachs, a large investment bank, are also created.
The root of real banker is the non neutral mechanism of risk pricing. If the market mechanism can not naturally disperse the market, the result is that no matter how it is designed, it will always produce the effect of the banker and the actual banker. For example, in the gold trading market, in addition to the fact that there are frequent bearers such as Morgan Stanley in futures trading, the spot market is actually an unfair mechanism.
Take Lunjiao gold exchange as an example. The exchange itself is just the gambling house of the five big makers. The five major gold sales monopolized the production and sales of gold in South Africa. The mechanism of this market is more like a British auction. As the dominant power of gold production is in the hands of the five major gold banks, they affect the long-term supply and demand of gold market through the gold production in their hands. For those who know little about the production information, they can only judge the market price through the gold products and the news in the market. In this case, the exchange is directly involved in trading. If this is not market manipulation, there is probably nothing to call market manipulation.
Some gold banks have raised their prices in the spot market and controlled the hedging of stock market prices in production. With the imitation and replication of Goldman Sachs and other companies in the spot and futures markets, they have gradually become well known.
Secondly, can the fairness of electronic operation guarantee that there is no manipulation power? Sometimes the risk of electronic operation is very high.
Often it may become a fraud tool for making fake plates. On the other hand, the congestion of order ordering in the market also makes gold trading
There was a serious herd behavior. Often at the same time there will be tens of thousands of orders, leading to the collapse of the electronic system of the exchange, or even failure. In theory, a hacker can steal extra revenue from this disturbance. If the embezzler is an exchange, then the result is obvious. This is the vacant position of the maker on the roulette, which is used to eat chips.
In addition, electronic operation only thinks that the transaction is mechanized, and it can not change the unfair design of transaction. No matter how you change the electronic system, you can't stop the gold companies from intervening directly in the gold market.
In the end, we seem to have forgotten that analysts often have a shared interest with gold market makers. Few of the research reports they have made are not related to institutional investors and the five major gold banks. Such research reports affect traders, and thus affect their judgment. According to Soros' reflexivity principle, people's blind obedience obviously provides opportunities for real makers to make profits.
With the frequent fluctuation of the gold market, people gradually realize that the banker is an important force in the gold market. When many brokers and companies recommend the products of spot gold to people, their wise statement that there is no banker is not worth refuting. The makers themselves are part of the profit-making mechanism of speculation and have no mistakes in themselves. For gold, whose price fluctuates greatly in the market, it is just a matter of destiny. It's just that most people don't want to face it.