Florida miner’s lawsuit accuses JPMorgan of manipulating silver prices

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LONDON, Oct 1 (Businesshala) – A Florida-based silver miner has filed a damages claim against JPMorgan , accusing the bank of manipulating the silver market to bring the prices down so much that the company’s mine had to be closed.

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The complaint, filed Tuesday in the US District Court for the Southern District of Florida, says that Hidalgo Mining Corp. raised $10.35 million from investors to finance a silver mine in Mexico that began production around 2012. and closed in 2014.

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Silver averaged $31 an ounce in 2012 and $19 an ounce in 2014.

JPMorgan declined to comment.

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Hidalgo’s claim, seen by Businesshala, uses as evidence information from an investigation by US regulators that found that between 2008 and 2016 JPMorgan employees used metals and Treasury markets to shift prices in their favor. Send fake buy and sell orders in

Traders say that this technique, known as spoofing, is a short-term trading strategy rather than a means of long-term price suppression.

JPMorgan last year agreed to pay more than $920 million to settle the investigation.

The bank paid $15.7 million last week to settle a class action lawsuit brought by investors who said they were harmed by the manipulation.

Reporting by Peter Hobson

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