As of the close of business this coming Monday, CME Group has lowered the margin requirement for its gold contract from $6,751 to $6,075 per contract. Maintenance Margin also moves lower from $5,001 down to $4,500.
While not a large drop, it always helps on the speculative front when margin rates are lowered.
Interesting to note that Gold is $50 off its highs from May, yet silver is still in the shit house, and they lower Gold!!??. I guess the perma-raise margin on silver is in effect. Well done Blythe, well done.
ReplyDeleteDidnt this news come out yesterday after close?
ReplyDeletethey are treating gold as money and silver as a commodity?
ReplyDeleteTrying to woo silver specs into gold. It's a trap!
ReplyDeleteThink of it like the Fed trying to "stabilize" things by raising and lowering interest rates. When prices skyrocket, they will raise it again. I just hope that the speculators don't pyramid up beyond what they are able to cover with the typical triple and quadruple margin hikes we have been seeing.
ReplyDelete-Lemming
@ Lemming:
ReplyDeleteMy thoughts exactly. Ease off on the margin req's to attract buyers and free up additional ammo for deployment during a subsequent rally. An imminent repeat of April-May wouldn't surprise me.
Until then, the constant low-volatility grinding sends schizophrenic short-term signals that chew up day traders and confuse peripheral investors. You know the flock will pile in like it always does.
Thinking like a fraudster has kept me alive and thriving in these markets so far...
And good to see you back this week, Mr. Norcini. I hope the break recharged your batteries.
Although I sure have alot to learn still, just wanted to thank you and Turd for what you all do so freely to help each and everyone of us! I can't imagine having to navigate the storm w/out your caring, expertise and help. Thanks just doesn't seem like enough....
ReplyDeleteI can only hope that comex has destroyed their reputation with those margin increases and that investors are finding other ways to put their money to work than thru these criminals.
ReplyDeleteThis is to attempt to paint an "all is well" picture, when nothing can be further from the truth in silver.
ReplyDeleteLets put the pressure on the banksters.
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