GOR = Golden Road to Wealth, page-17

A few weeks back I visited a site www.asxinsights.com that investigated the manipulation of the Kingsgate sp over 4 years. It showed that trades of less than $500 (representing 0.74% of sales volume) gave rise to 59% of price down ticks.It found that these computer generated algorithmic trades are contrary to the laws of supply and demand and are provided by the institutional desks of investment banks.
A lot of these investment banks appear to be the same names that are seen on the GOR register and shares being loaned transactions (short sellers).
The site mentioned that these transactions are against Section 1041 a of the Corporations Act which prohibits conduct which has, or is likely to have, the effect of creating or maintaining an artificial price for trading in various financial products, including shares and futures. I would think that the whole purpose of computer generated algorithmic trades is to suppress the sp so it would appear that they are clearly illegal.

I thought it was very interesting that Kingsgate put in place an on market share buy back and since then the sp has almost tripled.
If there is no adequate regulation of these illegal trades then the GOR sp can be driven down to whatever sp these leeches want.
From looking at about 5 goldies I can clearly see that this strategy is widespread with big players.
I think the ASX and ASIC do not want to rock the boat with such big players. After all the retail shareholder does not carry much wait.
I intend to raise this issue with ASX and ASIC. You may want to also so these organisations can ban these illegal transactions.

Keep The Faith
Gold Investors Unite