CME Raises Margins. Any Analysts Around Here Have Comment???
DriftingByTheStorm
Posts: 8,684
Seriously, WTF.
I found THIS guy, though. And he fucking cracks me up. Funny as hell, his presentation, but this ain't no joke.
You have to believe that the CME group is a bunch of fucking morons who can't get their shit straight to have to hike margins 4 times in a week for "honest" reasons.
This is nothing other than changing the rules of the game well in to the 4th quarter to keep yourself from losing the Super Bowl. The street (the "alternative" elements within, anyhow) have been screaming that Comex is running bust (out of metals to deliver) for over two years now. It seems to be the case that the jig is almost up so to speak, and this is a last desperate attempt to delay the fate, playing off of a real market top ($50 was certainly more than a little out of line for Silver, but this pull back is CLEARLY driven by the margin requirement hike and not "natural" market forces) in order to fabricate a metals collapse (and stave off a collapse of the exchanges themselves in stead).
DOES ANYONE HERE HAVE ANY UNDERSTANDING OF THIS MOVE AND HAVE ANY MORE "RATIONAL" EXPLANATION FOR THIS SEEMINGLY BLATANT TRICKERY THAN THOSE VIEWS EXPRESSED HERE? I'd love to get a coherent, well reasoned, and detailed response, and not just some soundbite like "the CME raised requirements to help prevent speculation driven instability in the markets". PUHLEASE spare me that trite bullshit! The exchanges EXCEL at speculation driven instability. The ONLY reason they would be concerned with instability would be if it was DIRECTLY, EMINENTLY, AND ADVERSELY affecting THEM!
To anyone who does NOT understand the jist of this "maneuver" by the CME, they basically told the metals investing\speculating world YOU WILL NOW HAVE TO PUT UP 61% MORE MONEY IN ORDER TO PLAY THIS GAME.
AND THIS ALL DONE UNDER THE GUISE OF ***PREVENTING*** MARKET INSTABILITY?
You just engineered a mini-crash, you dickheads.
WTF?
This is a bad bad bad sign for the immediate future of the markets.
Wait for silver to start moving back up to $40 and $50 again (give it a few months to recover from this bullshit) ... and we could see the metals markets actually collapse from the inside out (no silver or gold left at the exchanges available to cover the demand for deliverables means fuckdom)!
Another great read: The CME has now raised margins on silver three times in the last five days for a cumulative increase of about 35%.
I found THIS guy, though. And he fucking cracks me up. Funny as hell, his presentation, but this ain't no joke.
You have to believe that the CME group is a bunch of fucking morons who can't get their shit straight to have to hike margins 4 times in a week for "honest" reasons.
This is nothing other than changing the rules of the game well in to the 4th quarter to keep yourself from losing the Super Bowl. The street (the "alternative" elements within, anyhow) have been screaming that Comex is running bust (out of metals to deliver) for over two years now. It seems to be the case that the jig is almost up so to speak, and this is a last desperate attempt to delay the fate, playing off of a real market top ($50 was certainly more than a little out of line for Silver, but this pull back is CLEARLY driven by the margin requirement hike and not "natural" market forces) in order to fabricate a metals collapse (and stave off a collapse of the exchanges themselves in stead).
DOES ANYONE HERE HAVE ANY UNDERSTANDING OF THIS MOVE AND HAVE ANY MORE "RATIONAL" EXPLANATION FOR THIS SEEMINGLY BLATANT TRICKERY THAN THOSE VIEWS EXPRESSED HERE? I'd love to get a coherent, well reasoned, and detailed response, and not just some soundbite like "the CME raised requirements to help prevent speculation driven instability in the markets". PUHLEASE spare me that trite bullshit! The exchanges EXCEL at speculation driven instability. The ONLY reason they would be concerned with instability would be if it was DIRECTLY, EMINENTLY, AND ADVERSELY affecting THEM!
To anyone who does NOT understand the jist of this "maneuver" by the CME, they basically told the metals investing\speculating world YOU WILL NOW HAVE TO PUT UP 61% MORE MONEY IN ORDER TO PLAY THIS GAME.
AND THIS ALL DONE UNDER THE GUISE OF ***PREVENTING*** MARKET INSTABILITY?
You just engineered a mini-crash, you dickheads.
WTF?
This is a bad bad bad sign for the immediate future of the markets.
Wait for silver to start moving back up to $40 and $50 again (give it a few months to recover from this bullshit) ... and we could see the metals markets actually collapse from the inside out (no silver or gold left at the exchanges available to cover the demand for deliverables means fuckdom)!
-sourcetruthingold.blogspot wrote:WEDNESDAY, MAY 4, 2011
CME Raises Silver Margins - 4th Time SInce Last Monday
This is truly unbelievable and, I believe, unprecedented over the last 10 years. The CME has jacked the margins on the contract again from $16,200 to $18,900 - another 17%. This is a full 61% since last Monday. This can only be seen as a sign of true desperation by the bullion banks - in their war on precious metals - who control the Comex and who happen to be short several multiples the amount of silver available at the Comex to deliver into their shorts if they get called for delivery over the next 12 months.
It will be interesting to see how long it will take for the artificial price discovery system of the Comex to substantially disconnect from more valid price discovery mechanism of the global physical silver market. Right now it takes about $4-5 over spot to buy a 500 oz. box of 1 oz. Silver Eagles - if you can find them. Tulving has been out of them for several days now, which tells me the Mint hasn't indicated when they will resume the next shipment. If the demand for silver in this country via the Mint can not be met at these price levels, doesn't it suggest that the "real" price of silver should be higher? At least higher to the point at which buyers can freely source what they want from sellers at a price somewhat consistent with the spot price as set by the Comex and LBMA...
It also suggests that the vaults holding silver for the SLV trust which are controlled by JP Morgan, by far the largest of the silver shorts on the Comex, are more than likely harboring more dust than they are deliverable physical silver (I contend that it is mostly leased out). Don't hold your breath that it's not, Ted...
Another great read: The CME has now raised margins on silver three times in the last five days for a cumulative increase of about 35%.
If I was to smile and I held out my hand
If I opened it now would you not understand?
If I opened it now would you not understand?
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