CME to cut silver, copper, palladium margins

[Ouch]

SINGAPORE, April 13 (Reuters) - The CME Group will cut margins for silver, copper and palladium futures after close of business on April 16, it said in a statement late on Thursday.

The initial margin for COMEX 5000 silver futures <0#SI:> will be cut by 12.5 percent to $18,900 per contract, and the maintenance margin will be lowered to $14,000 from $16,000 per contract.

CME plans to decrease the margins on NYMEX palladium futures <0#PA:> by 9.5 percent. The new initial margin will be $5,225 per contract, and the maintenance margin $4,750.

http://af.reuters.com/article/metalsNews/idAFL3E8FC94B20120413

 

[shano73]

Will this affect spot price of either Gold/ Silver?

Or will companies just put in more orders, = more demand, therefore a raise in spot?

 

[fishball]

More volatility for sure, can't say which way though.

 

[RomanControl]

It means we will have $50 silver in 8 weeks

 

[ironwood]

It means we will have $50 silver in 8 weeks

Please excuse my ignorance sir but why 8 weeks?

 

[RomanControl]

Because I was talking out my arse

 

[metalzzz]

Good enough reason as anyone else's

 

[glam]

The CME manipulating silver prices again........
It's outrageous and should be outlawed.






Oh hang on................ down is good right.