I don`t think you can blame what may or may not be happening in the gold market on High Frequency Trading (HFT) or even about the volatility in the stock market. You are always going to have program traders, you are going to have people that are buying and selling based based on technical indicators, based on momentum indicators.
By and large, this creates extra liquidity. If it wasn`t for all the people speculating in the market, the markets would be thinner. It would be a little harder to buy and sell stocks if the only people selling stocks were long term investors who wanted out and if the only people buying stocks were long term investors that wanted in - there would`t be that much trading going on.
So I don`t think its the traders that are responsible for the problems.
Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.
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