http://www.bloomberg.com/news/2011-...os-passport-capital-sold-precious-metals.html Cannot believe I am seeing this in an article,
This may be a silly question , but can you explain who comex are and why are they raising the margin rates so aggressively?
Because they have been rigging the market for so long. Think about those poor people buying on margin when it was $48, say they bought a contract at $12,000 using leverage. Well the margin has been raised to $15,000. These poor people need to come up with the money or they need to sell the futures contract. Well they well but the spot price has gone down, so has the futures price. The criminals at JPM come in and buy it back to cover the short. Driving the price down will force a lot of people to cover or sell out of the position. Its been raised many many times. Is it near 20% yet? There will come a day where the crimex keeps raising margins to a point. If it hits 50% people might as well just buy the real thing. Forget about margins or using leverage. Its a big scam, just keep buying physical and end this scam. Slam
The whole margin raising conspiracy does seem a little over done. See. http://www.bullionbaron.com/search?updated-max=2011-04-26T06:44:00-07:00&max-results=5 Bottom line is that the margin price is increasing is tracking the silver price and doesn't really prove anything.
If spot drops far enough for long enough (2 months or more) I think, Yes, they will lower the margin price. They have done so several times in the past. See: http://www.cmegroup.com/clearing/risk-management/files/SI_2009_to_december_2010.pdf Notice mid 2009 from the PDF above and then look at the silver spot price at that time. http://www.kitco.com/scripts/hist_charts/yearly_graphs.plx
Bottom line - do you reckon the spot price will go down much more or are we pretty much around the low? It's currently sitting at $1167.79/kg ...
CME rises seem a bit cloak & dagger to me, why not sent margins to rise/fall every time Silver goes up or down 5-10%, make things a lot better.
Then they would get called out for 'manipulating the market' whereas if they do it the way they are doing it now it is called reducing excessive market volatility And that sounds a lot better to regulators who know no better! Because now they're protecting the poor poor investors who might get burned by being so heavily leveraged! /sarcasm
When the world decides to cancel the solar, renewable and electronics industries, then I'll get worried.
More like when the world decides to return to an honest monetary system backed by gold ... and the current banking elite ruling (and robbing) the world are imprisoned on Jekyll Island ...
