These and other commodities are going to rip by the end of the year. They have been trying to takeoff recently but the futures market is being manipulated.
I just watched a tutorial on how futures work. How are futures being manipulated? Can you share any good reading material.
It was my understanding that it's like buying sugar at $1 expecting it to go up to $2 in the future and if it does you make money from the in between. I'm just trying to understand how they could manipulate the future and whom?
The large funds deal in volume so they can sell and buy to influence prices. On top of that there may be more paper futures out there than actual product. If that's the case things will appear plentiful in the futures market while their are shortages occurring down at the street level. A test for a futures market is for a large number of people holding a futures contract demand delivery when it matures. If there is not enough product this would cause a squeeze as there wouldn't be enough commodity to fill the contracts. The markets can mess with the ability to do this by setting a minimum value you can demand delivery on. This is how they manipulate the metals market as well.
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