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And Like Clockwork, CME Hikes Silver Margins Halting Surge
In tried and true fashion, just as Silver was about to viciously destabilize the global capital markets as it surged to new 31 year highs, the CME stepped in and did its usual 3-6 half life intervention by hiking initial and maintenance margins on silver futures from $11,138 and $8,250 to $11,745 and $8,700 respectively. This is merely the latest margin hike in what appears to be a neverneding series designed to reduce speculative "fervor" courtesy of endless liquidity. What it will do is merely provide a better entry point for those who by now realize that silver's next stop in the fiat endgame is $40, then $50, and so forth. Naturally, the price drop in silver caused gold to sell off too. And now that the CME accepts gold as collateral, we can't even visualize the reflexive loops that develop once the metal that is also a collateral currency becomes more and less valuable at the same time.
And while they are at it, the CME decided to remove some of the Uranium volatility by hiking maintenance and initial margins in Uranium Futures (UX) by about 50%.
From the CME:
This is what a coparable margin hike looked like in November.
This is certainly not the last margin increase - by the time this is all said and done, "speculators" will need to overfund cash positions to trade precious metals per executive directive.
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JP Morgue has a new vault to falsify delivery and inventory data, CME hikes margin requirements, next it will be ICE repeating this broken record...... it's all in a days work if you're a white collar criminal-banker, a Cranker.
Another glorious buying opportunity for me.... ;)
I see no problem with CME or ICE hiking margins on precious metal contracts.
The exchange has to manage its own credit risks.
Uh huh. Hiking margins during the trading day on a hugely up day when non-commercial specs are WAY long. Lot's of credit risk there. And the shorts have Fed cover.
Once all the margins are gone it'll be dollar for dollar paper v silver.
No point buying paper, market dead.
bring it on!
I like AGQ: 2X silver.
It's an exponential relationship.
"No point buying paper, market dead."
I've felt this way for awhile now.
Also, I give this beatdown the same half-life of the radioactive Xe that is blanketing the planet.
In 5.5 days, we will be laughing at this, the EE's latest feeble attempt.
It is hilarious that same folks who want full reserve banking cry abt margin increases.
I agree with you about seeing no problem with hiking margins, that being said, it is strictly out of manipulation-not credit risk.
Why are people pissed off about this? If you are a believer in silver/gold, you should be happy that this shakes some of the speculators out that are artificially driving up the price and creates more of a true base.
I fucking hate the speculators that make my physical buying that much more expensive.
Also, pay no mind to the dipshits at the bottom of the comments that talk about buying and selling bars of physical palladium. They are unemployed and troll because they are socially inept in the real world (RobotDipshit)
+38.18
None of this matters. This is what, the 4th margin hike? The Merc is doing us a favor; raising margin rates only drives out the weakest hands, the overleveraged speculators.
The net effect is to concentrate the long side in the strongest hands: Those who will take delivery in cash.
Comex silver default? Can't happen as long as settlements can be made in cash or shares of an exchange-traded silver fund. But announcing that deliveries will be stopped with cash or SLV will drive the silver market into ferocious backwardation. The physical-to-paper premium will skyrocket.
Right no credit risk while have folks posting here abt how they maxxed out credit cards to buy silver. One of the ultimate signs of a mania.
Ironically and quite predicatably when the market changes old rules do too. If you believe that the currency is going to be massively devalued borrowing fiat to get commodities makes perfect sence. At this point if I could borrow a million dollars at 25% interest with 5 year terms I would do so.
I bought the fucking dip!
You mean: I bought the effing Top Reversal. Uh oh.
Totally agree. Look at the percentage margin. Now 6.3%. In November same rate was ~7%. Margin factor has stayed flat/declined a skosh despite mkt being up 35% since the November margin hike. Editor at ZH needs to exercise some diligence. I CALL BS on this article.
[Edit: post refers to tht of Robot Traders Mom not Gubbermint]
I agree totally .. this is the APPROPIRATE thing to to as an Exchange. In fact it is exactly what we have been railing against the Greenspan era of NOT DOING. Can't have it both ways. ... well not unless you are TBTF.
I agree totally .. this is the APPROPIRATE thing to do as an Exchange. In fact it is exactly what we have been railing against the Greenspan era of NOT DOING. Can't have it both ways. ... well not unless you are TBTF.
I agree totally .. this is the APPROPIRATE thing to do as an Exchange. In fact it is exactly what we have been railing against the Greenspan era of NOT DOING. Can't have it both ways. ... well not unless you are TBTF.
There's no problem with raising margins. Just pick appropriate times to do so. Wait for the pits to close and do this after hours so everyone knows first thing tomorrow morning and can start planning. Even better, why not bury it at 5:15pm on a Friday? Oh, because it wouldn't have an effect then...I'm beginning to figure this whole game out...
Amen. Margin requirements are actually way down, if you care to do the math. But then, the laws of mathematics should never stand in the way of a good conspiracy theory.
Initial Maintenance Silver
3/24 11745 8700 37.44
4/26 12825 9500 47.22
Delta +9.2% +9.2% +26%
Seeing JP Morgue reminds me of the December "Crash JP Morgue" celebrations at ZH. It also makes me wonder why JPM is less than 10% from its 52-week high, and not too far from its 5-yr high (for those with math issues, that would include the 06/7 bubble years) in the face of this endless silver squeeze. The six month chart is nearly straight up.
I thought silver was going to bankrupt the Morgue? Everyone was frolicking and partying and toasting each other in this forum in December, as if some sort of victory was being celebrated. Instead, JPM trades like the squeeze doesn't matter, at all.
To be blunt, this silver story has had NO effect on JPM. Zero effect. I mean, NOTHING.
Please advise.
Bernie Madoff's fund was worth $50 billion one day & $0 the next. The word Enron also comes to mind. Some folks are very talented players of the shell game. That plus a lot of backdoor money from a desperate chairsatan & you have JPM.
Libtrolls can't learn from the past. They just keep making the same mistakes over and over, making a fine 30 lane highway to hell.
Well Mark it just hasn't dawned on you a rising price of silver forces those like the Morgue with a huge short position to put up billions as collateral to meet margin calls. OF COURSE IT'S HAD AN IMPACT YOU MORON.
It has NO effect on them. They play with other peoples money.
That's right. I'm here to collect other people's money from JPM. A win-win.
When you are a Capo di Capo of the La Familia of Wall Street Gangster Banksters --- when you are the FED's bank --- with an endless supply of free-money from the criminal FED, it may take more than silver to bring you down.
Perhaps a different approach is needed.
Are we there yet? It sure feels like it.
Badda Bing! The Fed Mob makes the La Cosa Nostra look like High School kids.
'They made their bones when the Gambino's were chasin' cheerleaders!' Moe Green.
Need a Like button, Tyler.
Among other things, you apparently don't understand regulatory capture and the ending of FASB. This won't end until the massive concentrated short positions are dealt with. Either the CFTC does it's job or the physical market itself will resolve it by literally blowing up the fraud ridden COMEX.
Ted Butler explains,
http://news.silverseek.com/SilverSeek/1300983928.php
Increasing the number of times one can promulgate lies does nothing to enhance "truthiness!"
Well Mark I see you missed my comment on the Couer d'Alene thread so I will re-post it here for your benefit:
Well this is entertaining and worth a chuckle:
CNBC headline reads "Meredith Whitney Cuts Forecast for Morgan Stanley; Shares Lower"
She cut earnings per share from 59 to 35. However, here is the fun part - according to CNBC "Reasons for the cut remained unclear; a copy of the note obtained by CNBC offered little supporting evidence for Whitney's revised conviction on the mega-bank"
This is just great, fun news. Looks like JPM is getting fucked hard by PMs, but heaven forbid anybody at CNBC report something so blasphemous as that. We can all hope that Blythe is out of a job soon.
No word yet on when Meridith will be called before congress for this her latest treasonous, national security threatening, terrorist statement. I bet they have a special place at a FEMA camp picked out just for her.
http://www.cnbc.com/id/42251634
Advise? Sure you are an idiot for confusing JPM's stock price with their balance sheet - any other stupid questions?
"It also makes me wonder why JPM is less than 10% from its 52-week high..."
Ummm...the dollar you will be paid with is down -10% over this same time period...so your down what?...-20% and bragging?...mmmkay...LOL.
Bought more puts today... a nice little gift this afternoon.
The big dump on margin increases shows you how speculative this game has become.
Silver will be below $20 this summer.
It only costs 5 bucks to dig it out of the ground.
And by the way, the backwardation is also declining - http://www.cmegroup.com/trading/metals/precious/silver_quotes_globex.html - so much for the short squeeze theory. And lease rates - also declining rapidly - http://www.kitco.com/charts/s_leaserates.html. So long $36. It was nice knowing you.
See you below $20.
Can we set an expiration date on this silly claim of yours? You claim this summer, so I'll give you until September 1, if we haven't seen this long claimed correction, you go the way of the dodo. I'm sure you'll be long gone by then anyhow as silver is more likely to hit 50 than 20 this summer. Come to think of it, a better bet: September 1 or silver 50 you finally move on to troll elsewhere.
To me your $5 out of the ground line is simply more reason to buy up the underpriced miners.
Ya know what else Math Man?
That $55 Trillion in unfunded liabilities this broke nation owes is going to disappear by summer and Superman is going to fly real fast and make the earth spin backwards and turn back time and make silver go to 20 bucks because you have promised to eat your vegetables.
See you at $45-$55 by the end of the year in the real world, if you're still visiting us mere mortals by then.
That is the funny thing about bubbles. The rationale for the purchase is always there - and usually correct, or at least has some basis in fact. It is the price that is wrong. Yes, we have some big problems and the dollar could devalue over the next few years or decades --- but, the problem is, silver has more or less doubled in six months. And you're over paying for something that is more than priced in.
Buying for the right reasons, but paying the wrong price is how a bubble works.
Everybody bought dot.coms because the internet was going to change the world. It did. They just paid the wrong prices in 1999.
Everybody bought condos in Florida for 400k becuase the baby boomers were going to retire there. They are. They're just paying 150k in 2011.
Even the tupip mania started as speculation on the increasing economic prosperity of the Dutch in the 1600s... and they were right, Hollands global dominace continue until the 18th century.
It's always the same with bubbles... that's why they happen. The reasoning behind the purchase is correct, but people get worked up in to a mania and over pay.
Does anyone really think the nearly doubling in price over the last six months is justified?
It's not... you're all just victims of a mania, and it is going to end very, very badly.
That's a great post, Math Man. I'm happy to see a voice of reason in this libertarian echo chamber of goofiness and fanaticism.
Can you believe that some silver goofballs actually preach "price doesn't matter?"
Isn't that hilarious?
If there is one common thread in all bubbles, it's the belief that the price today doesn't matter because it's guaranteed to be higher tomorrow/next month/next year. And your examples fit that perfectly.
Price doesn't matter. *LOL* That's like bobbing for a clue in a vat of Kool-Aid and coming up with a bunch of fish hooks in your mouth.
The price really doesn't matter. But I'd be pissing up wind to try to explain it to you. Might as well try to teach my dog algebra.
Double Douche...
How much does it cost to dig it out of the ground? I missed what you said...
Silver (and every other commodity) is NOT rising in price, the Dollar (and every other Fiat currency) is falling in purchasing power.
On the day we see gold and silver making new highs at 1449 and 38, this PM troll trots out and says this? Your timing couldn't be any worse.
You would think the fucking moron trolls would have gone away when silver vaulted past $35
The margin increase is a bump in the road that will last a couple of days. Tops. The main (and continuing driver) is QE. Come back when QE ends, otherwise you're wrong.
It didn't even last 24 hours. We are right back where we were yesterday before the margin increases.
I wish they would be so particular about oil.. that directly affects poor people
If you buy gold and silver you don't need to put your money in a bank which means that government can't fund its deficits.
Oil, who cares...
This affect a lot more poor people than oil.
They're not all powerful... yet. They still have to pick and choose their battles.
such bullshit
Second that remark. However it does give us more opportunity to stock up at discount prices.
if long unlevered bullion? Why care?
I heard this theory: The COMEX can avoid default on silver by raising the margin requirements, until the margin required is 1:1. Then, longs will not use the COMEX at all. So, the shorts will be saved.
But this is a catch-22. Hiking margins repeatedly encourages investors to go for physical delivery, since they have less leverage in the futures market.
I hope the COMEX raises the margin requirements all the way to 1:1.
Dude, now ya kickin it!!
+1
...."encourages investors to go for physical delivery"... that's a good point.
Plus there is also psychological effect, everybody understand that Banksters need more help by changing the rules in the middle of the game. That means they are desperate, losing the battle day by day. This will also encourage investors to ask for more physical delivery.
Changing the rules in the middle of the game. Right.
Like when the dice are in the air. Try that in Vegas.
Two big no-neck guys will come out an want to "talk" with you.
Right they can essentially keep raising the margin until they blow themselves up - perfect
Right they can essentially keep raising the margin until they blow themselves up - perfect
Yes indeed. I enjoy these shake the tree moments as:
A. I personally don't want a bunch of dumbasses adding on multiple futures contracts with high leverage instead of working for a living
B. Gives me the opportunity to add physical on sell-offs
C. It's cheap entertainment watching JPMorgue break every law and bribe every swinging dick just to avoid having silver go to $100 quickly rather than steadily
So many posters here are talking about a selloff and buying the dip. What did I miss?? Silver is >$37!
Could you refrain until June 10th you worthless prick?
True 'dat. And I don't think the little boy spalding (pissing in the wind) has once manned up to take the various challenges offered to him. He's a fraidy-cat shill.
+1
Why ya gotta be a dick?
Turd tell "Spalding" to go fuck himself and please never give up on your blog.
I replied to fucking douchebag Spalding then changed my mind. Why waste my time?
Keep the faith, TF. CME will eventually drive traders to other markets. Or maybe we will all be long physical and the CME can eat worms.
And you said you would no longer post • spam ZH.
Snake oil .... Blaming your loses on Blythe, a masterstroke for any salesman. Without the dustup in the middle east gold would be under 1,350 and when QE is over ...... Wooooooooooooooooooshhhhhhhhhhh see ya bitch !!!!
The end of the great keynesian experiment but you start a new business, that was just a hedge, right ... Lol'
It's not spam. Spam is *UNWANTED*.
The people here want to hear what he has to say.
Unlike you. Loser. No-one has EVER asked you to open a blog, have they? There is a reason for that.
LOL didn't gold hit an all time high today? Is it June already?
Meh - Martin Armstrong just came out and said that if gold makes a low mid-June, that is his surest sign that it is going to liftoff.
http://www.martinarmstrong.org/files/how%20and%20when%2003-01-2011.pdf
Hey everybody, it's Loser the Delivery Boy!
How's it going Loser? How does it feel to be constantly beaten by people who just buy and hold physical silver? How does it feel to lose all of your meager savings to transaction fees?
Or do you actually do any of that?
Oh, what's that? Scumdog Millionhairs wants a new dinette set. Better get off to it, boy. The spending habits of the wealthy corrupts in Chicago are indicative of the spending habits AND economic health of the rest of the US. Every dinette set Loser here delivers is worth 100,000 jobs around the US!
Doing a hotshot to Baltimore this weekend $1950.00 cha-ching .....
Dat guy wit the green lips avatars got some kinna king sized chip eh?
Dat guy wit the green lips avatars got some kinna king sized chip eh?
What's that, when you suck off all the guys in Baltimore?
They're paying you too much.
Fuck off. No-one wants you here.
Ask a doomer, jobless, communist like yourself, why waste my time .... Lol'
You are so stupid you don't even know the definition of ANY of those words.
I'm making money hand over fist, unlike your lying ass who just got fired from his "cushy" delivery job. You were "sick" for so long that no store owner on Earth would continue relying on you, so now your dumb ass is back on the road making NOTHING.
You want to know how I'm doing? +123.97% in the last year.
Suck on that, delivery bitch.
Spalding, I guess I don't understand why you decided to become such an asshole. I've never been anything but cordial toward you. Additionally, I counseled people into silver at $26.50 in late January. They've done pretty well.
Whatever...like it matters. Go do your thing. I won't be responding to you again.
A few things, the hundreds of spam's stealing readership on someone else's blog, blaming blythe for ever bad call, and calling for the downfall of keynesian economics but then you open up a new business.
Do they feed the turd in gold or dollars, how do you buy gas and food and pay your taxes ?
How do you "steal readership"? You honestly think that anyone who reads the brief posts on Turd's blog doesn't read ZH?
You are an idiot. Get out.
I'd think that if Tyler didn't like it, he'd have asked TF to stop.
How are gas prices treating you fuckwad? How's your hero Ben doing?
You're such a pr0n star.. the gay kind..
You give him too much credit. He's just a fluffer.
;-)
Smailes, see you again on the next down day. About $5 from now.
This is a war. The good guys will win this one.
the good guys only win in the movies, Ray. sorry.
Everybody knows that the dice are loaded
Everybody rolls with their fingers crossed
Everybody knows that the war is over
Everybody knows the good guys lost
Everybody knows the fight was fixed
The poor stay poor, the rich get rich
That's how it goes
Everybody knows
Love that song. Many others of his as well.
Keep the faith Turd. Your site is waking up thousands of people to this ongoing criminal enterprise of JPM/HSBC/SEC/CFTC etc...
Sad to say, I've been watching this for over a decade. They are now making shit up as they go. It reeks of TOTAL desperation.
Iron fisted resolve Bitchez.
If anyone cares what the fuck I think, here you go:
http://tfmetalsreport.blogspot.com/2011/03/bs-pm-market.html
Don't let the delivery boy get you down, Turd. Just keep the legendary shoeshine boy in mind, when you remember that this moron is long stocks and short silver.
What's the difference? Since all financial assets are in a bubble, the only up side to PMs is you can physically keep them.
Yet, when the house of cards finally comes crashing down, how are you going to manage holding onto your PMs?
Let's face it - if you have food, PMs, etc stored, within a relatively short time frame, your healthy self will begin to stand out amongst the impoverised. (See Clavell's 'King Rat'.) Think they won't notice?
This is why, while I enjoy reading trading threads, I can't help but imagine it's really no different than the crowds which flock to the sea shore to see the tide go way, way out.
It all seems like a bunch of fun & games, but this is deadly serious business. How well one manages to fit in, provide leadership, rally the downtrodden, etc are really the keys to survival.
If you are smart enough to prepare with food and PMs, the next logical step is the arm yourself with firepower to ward off would be looters. Keep to yourself, and if someone intrudes into your tranquility then answer with a volley of shot. Ammo will be commanding a premium in times of widespread anarchy.
All these things are done simultaneously and in fluctuating amounts to maintain balance. There is no numbered list of tasks in this endeavor. Thank you for playing.
Think "Surviving in Argentina" over white farmer in Zimbabwe...
That booger eater isn't long or short anything. $50 says he has no capital whatsoever.
I wonder if there might be some avenue of recourse in the courts against blatant market manipulation...
this is so fucked up.
This type of thing will continue as they slowly lose control.
Expect many more acts of desperation.
It doesn't look like they're losing control to me, looks like they just stopped a major run up in its tracks.
Buy and hold people, buy and hold...
Judging by the effectiveness of the late Jan raid, compared to the last raid, they are indeed losing control. We'll see how well this raid works to bring down prices.
If control is indeed lost, the only way I can see an out for them is to try to crash all "risk" assets, assuming people will flee into the dollar. But I'm not so sure that will even work this time.
Only time will tell.
I'm in agreement with you Malikai. What happened today was predictable and I think it does show they are desparate and losing control. I also don't think this raid will drive the price down enough for me to make a anything but a slight profit on the ZSL I bought yesterday. I think they are losing capabilities while at the same time becoming more predictable. I didn't know exactly what fraud would be committed today but I knew some kind of fraud would be committed today or tomorrow and that is why I went short yesterday. I am not bragging - I nearly shat my pants when silver broke so strongly upward through 38 this morning and I was down heavy in my ZSL position. I am looking to unload ZSL and go long AGQ again within the next few days. I can agree that they would crash risk assets to prop up the DXY, but I think that crash will exclude the S&P/DOW and be targeted across a variety of commodities...namely gold, silver, copper and oil....and I too am not sure that will work this time.
Your photo makes me want to buy and hold.
No, this is the real world...
Funny old thing, who said the SEC or any other government body was there to act for investors...
Buy, buy, buy!!!!!!
BTFD!
Except in PMs it's: "BTFP" = Buy the Fucking Plateau,
or
"BTFP" - Buy the Fucking Pause.
Fucking fuckers. This shit makes me crazy.
Another great dip to be bought.
Looks like another rotation.
Mo-Mo players are dumping gold and piling back into tech stocks.
Why be greedy? Lots of money made in GLD and SLV, many are taking profits and using the cash to find beaten down junkers.
Lots of big reversals today in tech land.
Bargain hunters are swooping in on names like NVDA, up 8% today.
Well Robo, watcha gonna do with all that cheap POMO, eh?
Shit, Thats easy.. Buy stocks, Make money, Ignore all bad news, Praise Doctor Bernanke, Party like 1999. Did i leave something out?
Great point there RObo.
If the market makers are going to blow upward the yuckity markets with a moon shot, then paper metal dealers will go for the highest return. They know the PM paper is more useless than a stock cert is perhaps in the near future.
Only gold bugs, are hard core, long term. The elites don't give a shit, for they hold everything, anyway.
You are such a propaganda whore. Who do you work for?...the banks, the Fed, Timmy??? I know you are not just some unemployed dumbass who lives in his mom's basement posting on ZH 24/7......or maybe you are.
Massive volume in Nividia, I love it ....
Got MPEL or GLUU ??? ?
Spam. Nobody cares.
Seriously, it really bothers me that I know you are on unemployment and just troll around at the taxpayers expense.
frankly i don't understand the defeatism. obviously "this can happen." as reported on with great expertise here and only here "we have flash crashes." the response? BROKEN TRADES. Obviously "if you were expecting free market capitalism" in your "free market capitalism" we all need to grow up. having said that "raising margin requirements is a defeat"? not for the longs in my view--sure prices went down the last time this happend...and then? No, imo this makes the CME look like a pile of BS. Great for Saudi Kings and princes tho...
Geez.. the first dip in a long time and you finally show up.
That's a Monday Morning QB in everyone's book...
"Bargain hunters are swooping in..." Yea I'm sure they really are *rolls eyes*
Don't trip over the volume as you stumble over your paper stocks.
Robo, make yourself useful-like Pladizow,and take it all off.
Robo, make yourself useful-like Pladizow,and take it all off.
No, I don't have Tourrets syndrome
And F. Guess the morons finally figured out TM is effectively out of action for a while.
Robo, you aren't real. You aren't a trader. You have no capital. So just save the advice, leave some soft porn and come back next week.
Just another form of market manipulation. Protect the banksters at all costs.
Bullshit!
the collateral value of hard assets isn't news,it was as soon as i remember from 2001,at list in ABN AMRO and UBS
nothing qutie like changing the rules in the middle of the game .........................
Silver rules!
Each day, there are at least $7.5 billion reasons to buy more silver.
We have long passed insanity and are rapidly approaching euphoria, does that not scare the shit out of any of you?!?!
I for once am 95% cash, physical PMs and 5% puts! If nothing else matters in this world anymore but money, I suspect we'll get a lot of it, as toilet paper, soon!
Not scared here, for once 50% long, and 50% cash instead of 110% short.
you have to buy this dip...too predictable.
Gold/silver set highs, margins hiked, short plunge and then back at it again next week.
so CME chases out some of the latest hands by forcing them to sell today
Yup. All of those misanthrpoic paper bugs that hated seeing this run-up are gonna jump in calling the top. They'll be toast in a week or two. Another way to buy on the cheap
.
This is a bit predictable...
who the hell is that guy running with the goal post down the field
the goaly...
haha, it's fucking ridiculous!
I like Tyler's naming of Commodity Whack-A-Mole, it's just so fitting.
Silver's gonna be on sale again! This is GOOD news. Who here was gonna sell into $38 anyway. Do we really care how much government toilet paper an ounce is worth TODAY? Bah, let her drop. I measuring my wealth in ounces, not dollars
+1000
+320 and increasing every weekend.
Yep, weight be it. The commons must learn.
Fair is what you pay to ride the bus.
and spelled "fare"
Makes no matter...
This is exactly what I posted earlier.
A $16.50 up day,and then a $32. take down the next, starting all over again, silver same train.
One thing good is, as long as there are higher lows,we are winning.....................SBS.