Top Stories This Week: Gold Manipulators Go to Court, Silver's Industrial Side | Summary and Q&A

TL;DR
Gold price is holding above $1800/ounce, but market watchers are puzzled by its lackluster performance. Spoofing trial reveals manipulation of gold prices. Silver is expected to exceed $40/ounce due to strong industrial demand. A group of senators introduced a bill to remove cannabis from the controlled substances act.
Key Insights
- ๐งโ๐ญ Gold's performance in 2021 has not aligned with expectations based on traditional fundamentals and current market conditions. Price manipulation is also a debated factor.
- ๐คจ Evidence presented in a spoofing trial raises concerns about the potential manipulation of gold prices by traders.
- ๐ฅบ Silver's strong industrial demand, especially in solar panels and high-tech applications, is expected to lead to price increases and potential shortages.
- ๐ฅ The majority of respondents believe that the precious angle, rather than industrial demand, is currently driving the demand for silver.
- ๐งโ๐ญ A draft bill introduced in the Senate aims to remove cannabis from the controlled substances act, but its passage remains uncertain.
- ๐ Market analyst Dan Ahrens suggests that American cannabis stocks are undervalued compared to their Canadian counterparts, even without federal legalization.
Transcript
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Questions & Answers
Q: Why hasn't the gold price reached record highs despite factors like money printing and inflation?
According to market watcher Mark Lichtenfeld, there appears to be a disconnect between gold's traditional fundamentals and the current market conditions. Some argue that price manipulation may also be a factor.
Q: What does the spoofing trial reveal about gold price manipulation?
The trial involving former precious metals traders from Bank of America's Merrill Lynch unit shows chat logs where one trader brags about manipulating gold prices. The trial is ongoing, but this evidence raises concerns about potential price manipulation.
Q: What factors are expected to drive silver prices above $40/ounce?
Colin Plume of Noble Gold Investments suggests that industrial demand, particularly from solar panels, electronics, and electric vehicles, will push silver prices higher. He believes there are no viable substitutes for silver in these end-use markets.
Q: Which aspect, industrial or precious, is driving the current demand for silver?
Though the poll was ongoing, most respondents on Twitter believe that the precious angle, such as silver's use in jewelry and as a store of value, is the primary driver of demand.
Q: What is the status of cannabis legalization in the United States?
Senate Majority Leader Chuck Schumer introduced the draft of the Cannabis Administration and Opportunity Act, which aims to remove cannabis from the controlled substances act. The bill's passage is uncertain and opinions are divided on its chances.
Summary & Key Takeaways
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Gold price remains steady above $1800/ounce, despite factors like money printing, COVID-19, and inflation that should push it higher.
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Spoofing trial for precious metals traders reveals discussions about manipulating gold prices.
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Silver demand is driven by industrial uses like solar panels and high-tech applications, leading to potential shortages and a price increase.
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Democratic senators introduce a draft bill that aims to remove cannabis from the controlled substances act.
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