After suggesting there was collusive behavior in the gold market in a draft research paper that made headlines, economist and professor, Rosa Abrantes-Metz is shifting her focus to silver. Metz, an adjunct professor at NYU’s Stern School of Business, burst onto the precious metals scene after she published a research paper examining how the former London gold fix may have been manipulated for a decade by the banks setting it. Metz had found unusual trading patterns around 3 p.m. in London, when the afternoon gold fix was set during a private conference call between five of the biggest gold dealers. The fix has since disappeared, replaced in March with a transparent electronic auction process. Silver also received a new benchmark in August 2014 – the new London Silver Price – which has third party administrators CME Group and Thomson Reuters handling the governance. The end of the silver fix was initially caused by the withdrawal of Deutsche Bank, which ran the benchmark with HSBC and Bank of Nova Scotia. Metz said the new electronic benchmark is a step in the right direction with more transparency but it can’t prevent manipulation from happening.
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