Quote from article The prior sharp selloff was seen on August 11. This is significant because the CME increased gold margins by 22%, effective after the close of business on August 11. The same beat down method seen in silver months earlier, was seen in gold. However, gold recovered quite well until yesterday's sharp selloff. So what caused this familiar selloff in gold and silver? Another margin hike! Late Tuesday, it was announced that The Shanghai Gold Exchange increased gold margins for forward contracts, the second time this month. Li Ning, an analyst at Shanghai CIFO Futures said, "Gold prices on the global market have been rallying strongly and at an increasingly faster pace. The margin hike is a pre-emptive move in case prices crashed and caused great volatility in the market. The Shanghai Futures Exchange could raise margins on its gold futures contract soon too." http://www.kitco.com/ind/McWhinnie/aug252011.html http://forums.silverstackers.com/uploads/thumbs/35_margin.jpg
As a follow on to Peters Post there is a question which has been perplexing me for a while. How can the Seers of the PM world see that a correction is due by observing a steep Parabolic rise?(As Peter's post points out the same is occurring with gold and external commentators are making the same Parabolic warning claims.) Thats kinda like Saying buckwheats chances of winning the Hurdle competition this year are shaky because he's been Champion 7 years in a row.Then adding 3 times the amount of hurdles onto the field and Soap boxing-"He has to loose sometime" The 84% Margin hikes in Silver were COMMEX influenced. It would be logical to say "If COMMEX had not lifted the Margin calls what other force of Nature could have downturned the price of Silver so sharply"I can't think of many and i deliberately did not use the word correction because that would signify that Silver was over valued which i don't believe it ever was. Not meaning to hijack this thread Peter just extrapolating your reference in relation to the previous Silver situation. REDBACK
