9th May - MARK THE DATE

grinners said:
No one has yet been able to explain to me why, for a commodity in backwardation margin hikes wouldn't INCREASE the price. Most traders are shorting silver, hence its backwardation. If the futures market is reduced, then there are less shorters....
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I'm not exactly sure, but I think the margin increases are for the long contracts.
I'm not sure how the shorts work.
 
da-shaz said:
seems ridiculous that COMEX can destroy the silver price when they want
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I think they are attempting to get paper and physical into a proper relationship so that real wealth (physical) is not corrupted by a PM version of fractional banking. The more I think about this, the more I'm inclined toward this view
 
They are not attempting anything of the sort. All they are doing is raising margin due to the obviously massive load of margin calls that have occurred when the speculators swiped their profits off the table.

I wouldn't put it down to anything other than de-leveraging due to a large increase in margin calls causing a liquidity crisis. It's not just in the silver market, it's really across the board, it's just that silver has had the big run-up and then the sell-off which has triggered a flurry of margin calls that have compromised the liquidity flowing through the exchange.

It's the same as when you buy stocks on margin. If the stocks go down, you get margin calls. That means you are forced to liquidate your positions to cover your margin loan. This is no different, except it's in the silver futures market.
 
goldpelican said:
Guys,

There is a scheduled margin increase on COMEX for the 9th May, where the margin on a silver contract will be raised (again!) from $18,900 to $21,000 for 5000oz.

Whether this has already been fully priced into silver at this time remains to be seen - but come Monday night, the midnight-6am thread will be a very interesting place to hang out.

Just sayin'.
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Hi goldpelican,

Yes...tuesday morning here in oz we might see even lower prices.... but, I do hope it's already been factored.....

Either way I will be buying more.... and IMHO only, fundamentals have not changed a zilt...... the Comex or should we call them CRIMEX and their commercial banks buddies are getting desperated now IMO. I often think that China, would be more than happy with commodities price drop...... and saying so, wouldn't they also be involved in this game ?

Accumulation is the game now.....cause we all know the end game on this fiat printing monetary system....;)

It's almost imperative to be invested in PM's atm IMHO...especially gold and silver.... inflation is here and major monetary changes are on it's way......

By August, we will know if QE3 or whatever they call it is reality or not..... and IMHO there is no way out other than printing more money for the USA.....

Inflation/deflation = wealth transfer.....

cheers :)
 
Ok am planning to try buy down the dip and plan to keep purchases under 5k, so 5 k mon, tues, wed. Will this be OK with the anti laund ering laws? 3 separate orders all under 5k on 3 separate days? What about if I place with 3 separate companies. Don't want to do anything dodgy, but its just my strategy for making the most out of this dip. TIA
 
thatguy said:
Ok am planning to try buy down the dip and plan to keep purchases under 5k, so 5 k mon, tues, wed. Will this be OK with the anti laund ering laws? 3 separate orders all under 5k on 3 separate days? What about if I place with 3 separate companies. Don't want to do anything dodgy, but its just my strategy for making the most out of this dip. TIA
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I like your style..
 
I agree with now being a good time to buy, I think the May 9 hike would have already been factored into the price

My feeling is that eventually the physical market will take control in the long run but shake outs of weaker hands like what weve seen over the last week will happen along the way
 
I'm also buying but I am in not in panic mode. I will accumulate some fiat for now. I don't see any silver spot skyrocket happening very quickly. That recent spot rise to USD50.00 was meteoritic and really exhilirating :D neh? That particular party has ended and we are now in hangover mode. It will pass and as it does I will keep stacking at better buying prices. Looking forward to the next enjoyable ride. I somehow feel we will see this scenario again soon enough.
 
da-shaz said:
seems ridiculous that COMEX can destroy the silver price when they want
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It's what America calls "Free Markets"

Feel free to invest so the banksters can steal from you

Criminal, absolutely criminal.

You know the millionaires are going to clean up in the end in the paper market...

That's why I'm only in physical, and the swings don't bother me too much...

$100 or more by Christmas
 
It will be extremely interesting tonight....

As I type, silver is seating at $37.78 at 5.50%....

I'm not rulling out the commercial banks coming out tonight to play once again as the desperation closes in....

I only hope that PHYSICAL investors/traders/holders keeep mind strong and do not give it way....

I'm willing to sell to them...and I will..... but, they will have to pay for it... and at much higher prices.

IMHO only, we are in for a ride....and silver has a long way to go.........UP ;)


Interesting times ahead.....
 
thatguy said:
Powder still dry am still hoping for 30ish
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Yeap possibilities....possibilities.... :)

30's has a very strong support.... if those commercial bankers do push it to that level....

With discounted prices hovering around...... when the run starts to resume towards the 50's again, I think we will read a lot of stories of countries and famous names that have been buying up on this silver market correction/manipulation/shorting....

At the moment it's all quite and noone wants to talk.... typical bargain grabbers......
 
hiho said:
thatguy said:
Powder still dry am still hoping for 30ish
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IMHO you have missed it big time, your powder will be dry for a long time
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Dip over? Spot price Looks a tad... dare i say it 'parabolic' at the moment, but either way i'd love it to go to the moon, but i think sub 30 may still be on the cards.
 
goldpelican said:
Tempted to pick up 100oz tomorrow regardless. OTOH I should buy my own bars now :)
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GP wasn't your purchase responsible for the previous drop? Maybe you should hold off for a little while til it stabilises! :P
 
Given there's so many different ways to gear yourself up the ying-yang if you wanted to, I dont really see how a margin requirement of $21,000 on a holding of 5000oz really matters.

5,000 oz's x say $36 = $180,000. $21,000 represents a gearing ratio of only about 8.5:1. Hardly what you would call "excessive" given the 99:1 or more gearing you could have got on property etc back when.

Still, nothing to stop someone taking out private loans to buy silver ETF's, effectively chopping of the comex's gearing ratios.
 
I think my post belongs better here:

Is the COMEX manipulating the markets?

835_silvermarginpercent.jpg


Source: http://www.youtube.com/watch?v=hPKEy3rTA_g

Yep. They are sometimes accommodating, margins are a smaller percent of price, down to 4%, and other times unaccommodating, margins are a larger percentage up to 14%!

This year up to and including April they were very accommodating at 4% but raising the margin prices. Then the crash at the end of April. We are now at 9%.

Conspiracy?
 
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