And Scene: CME Hikes Silver Margin For Third Time In 7 Days, Raises Initial, Maintenance Margins By 12%

Tyler Durden's picture

Last week two silver margin hikes of 9% and 10% did nothing, which is why this week's first hike (of many more) by 12% to the maintenance and initial margins was to be completely expected. We believe that nothing short of 100% margin (coupled with not one single ES margin hike by the Globex) will eventually placate the ardent Comex risk managers who are terrified their models may end up being wrong about "stuff." One thing is certain: the panic is palpable and the administration will stop at nothing to prevent the $50 limit order from triggering silver's surge to triple digits. We wish them all the best in this endeavor and are grateful for any and all BTFD opportunity.


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Out9922's picture

Love it.  I hope it goes to the 30s so I can load the boat

nope-1004's picture

Yawn....   was in isolation for a month.

WTF??  Silver is up 30% this month?


long juan silver's picture

Silver is down 10% this month

akak's picture

Your IQ is down 40% this month.

long juan silver's picture

What's really amazing is that's it's still 300 times yours!

narapoiddyslexia's picture

And I'm buying another 100 oz bar to celebrate your IQ. If even a small fraction of the people who read this today do the same, we'll have another situation, then another, then another, until....

Ahmeexnal's picture

$50 is an ELE for the USD, JPM, and TPTB.

Keep buying at discounted prices!

Dimon and Blythe will be forever remembered as the Retarded Duo!

TDoS's picture

Bought another 20oz today.  Might buy another 20 next week too.

Thomas's picture

Technically you are both right (-10% this month and +30% month over month). All I know is that this margin thing is pretty damned cheesy.

ZeroPower's picture

Silver? Haven't all the rational folks agreed $50 is a pipedream until at least some consolidation in the low 40s and/or QE3 is started? You can easily spot the bubble in equities but for some reason are shieled from seeing the exact same hyperbolic pattern in the silver chart. 

Give it time.

JLee2027's picture

Did you see that action two Sunday nights ago? 50 was a trade or two away. TPTB are terrified.

Sudden Debt's picture

The supply cycle is broken in silver.

Over 2 years now, investment silver drained the industrial supply at such a rate and junk silver didn't meet the usual quota.

Even without any "speculation" in paper, the shortage will make prices rise at least  20% a year from now on.

Even 100kg shortage in supply in the industrial market can cause prices to double as the amount of silver used in electronics is so low, that it doesn't matter if it costs 50$ or 1000$ to use it in their electronics.

A Ipad for example uses about 1/3 gram of silver. So if it costs 10$ of silver per Ipad, the consumer would never notice it.

Bicycle Repairman's picture

I was junk #14. Your comments s#ck.

silverstud's picture

Selling the house, dog and kids.. Cashing up to buy physical Silver when it hits US$25 per ounce!

I love the Comex.. it is such a fraud and allows me to buy physical silver at a fraction of its real value.

The idiots are those who trade useless paper for a quick buck!

When the physical runs out then I will be sitting pretty with physical silver while those trading on the Comex can do little else but light up the last cigar with their worthless paper silver contract.

Ozzie Scott


Teamtc321's picture

"The idiots are those who trade useless paper for a quick buck!"


Not if you are buying physical with that quick buck. Alot of that going on. I have added with those quick buck's.

Dr. No's picture

How is trading for a quick buck idotic?  Profits are good.  Fast profits are better.

NotApplicable's picture

Because your profits are measured in dollars, which is not a standard of measure, nor a store of value. Add to that, the taxation for your "gain," which is really just a loss as measured against the unmeasurable dollar.

Why take the risk of trying to game the game, when you can profit merely by sitting still?


Papasmurf's picture

Those trading paper silver will have a Bernie Madoff claim.

Ese Pinche's picture

When the physical is all gone the US gubmit will be confiscating all PMs... Owning physical is not an iron clad ticket to financial safety.  If you own/hold paper definitely more risky... but in a real disaster, one we very well might experience, your physical silver will not be yours to keep/use.

Kelley's picture

Thank goodness I don't have any physical silver. I'm pretty sure no one else here has any either.

GubbermintWorker's picture

Nope, but I do have a lot of physical lead.

LaughingMan's picture

+ 4000... rounds that is.


Silver brothers in arms. Cue Dire Straits!

uniman's picture

But seriously, I'd like to hear some scenarios regarding surviving exactly what you just scoffed at.  In the event of a major financial and political upheaval can you describe in further detail how you expect to ride out the storm?  Might the mob think that anybody calmly sitting on their porch and enjoying the beautiful evening obviously has a basement full of PM and missing neighbor girls?

European American's picture

Well, if there's a mob outside your house you're probably in trouble to begin with. 

I don't know about the others here, but why I have accumulated a few ounces of both silver and gold is for the day when I can take those few coins, and purchase either a new currency, or other "tangible, sustainable assets. When I think "long", we're talking possibly some years from today, not next year, or the year after it. The years between "then" and "now" could very well be turbulent and not so easy on the nervous system. During the tumultuous years, I'll probably be tapping exclusively into the various, sustainable assets capable of keeping this physiology standing on it's two feet. Those assets being, stored food, fresh organic foods from my greenhouses, solar panels, wind turbine, to name a few. Of course it's possible that the same "mob" outside your door might key into my belongings as well, long before the new currency is fresh off the printing press. But from where I stand, I like the odds. On the other hand, the invisible killer particles blowing this way from Japan, are another story.


Anyway, how the exchange takes place when I finally walk through that door to purchase that new currency with those coins in my pocket is anybody's guess. Might all take place on the new (old) Black Market, down back alleyways, in the dark. But it's certainly going to be more "real" and exhilarating the present system.


I think many of the smart ones who visit this site to read the great articles and informative comments probably prefer to lay low while the storm passes over rather than jumping into the fray. Seems like a direct correlation between rising and lowering PM prices and certain posters blood pressure levels, imho.

ultarnerd's picture

One time by accident I actually made a mix containing silver that wen lit on fire instantly made pure molten silver and no its not a thermite where another metal can contaminate.

So yes there appears to be some clever ways of hiding your metals if you want to be a bit creative.Sulphur has an extreme affinity for silver and fused sodium chlorate will reduce back to metal with little difficulty.Will also experiment with it as a way to remove plated silver rather than using the acid.I will probably try mixing my silver compounds into small plastic ornaments for even better concealment.My web site is down right now as I sort of ran out of money but when I get it up again and get to do more experimenting I plan to put it all on my site.This is the sort of thing that could prove usefull if you really must trasport your silver and gold, where of course buying in the yard wont work.

Hugh G Rection's picture

Me either... All my metals were stolen and I forgot to file a police report...

A Nanny Moose's picture would they go about confiscating pre-1964 dimes and quarters? It would be an epic waste of time, and they are still legal tender. I doubt the average flunkie Blue Shirt could even ID junk silver coins.

covert's picture

the relevance doesn't seem obvious.


Id fight Gandhi's picture

It's such joke they keep doing this to silver but never touch ES

Buckaroo Banzai's picture

But no one ever speculates in the E-mini S&P, that only happens in silver and gold. And oil.

Missiondweller's picture

Smells of pure desperation

tmosley's picture

No shit.  And people keep talking shit about me and my calls.  Let's see these morons say the same things come Friday when we are back at $49.

But then, they are just trolls, and they will disappear, and Trav will lose his one and only tool in his senseless vendetta against me and will be quiet for a while.

long juan silver's picture

Silver down 10%.

Will you resign the board if silver is not $49 Friday?

tmosley's picture

Will you commit ritual suicide if it is?

No, I won't.  I have already made a pledge that if physical silver is ever available on the open market for less than $20, I will leave forever.

But that doesn't seem fair anymore, does it?  Let's move that up to $35.

That is PHYSICAL.  NOT spot--and it has to be available on the open market for at least 24 hours.

bob_dabolina's picture

You're a troll.

Anytime anyone says anything bearish about silver you start screaming and whining like a 14 year old who just found her tits, "troll, troll, trolling, trolsters are out" Just shut up already. We know for christ sakes you're a silver bull till' it hits 1,000. Like I've said in so many posts. Price is the final arbiter.

Just sit back and enjoy your shearing for being a greedy sheap.

tmosley's picture

Uh-huh.  Whatever.  I have been pointing out lies and inconsistencies in these people's posts.  That's all.  They keep registering new names to try to get away from the fact that anyone who followed their advice has lost everything.  

Anyone who has followed my advice from more than, say, two weeks, is UP.

People seem to forget that silver was at $42 on April 15th.

bob_dabolina's picture

So when are you selling tmosely? Please, enlighten me with your sage advice to help me make millions.

tmosley's picture

I sell silver for gold, starting at 1:10 gold to silver ratio.  

Dollars are not involved.

long juan silver's picture

Dr. Ted Warren Reid (Chairman)
Dr. Julian Spallhoz (Vice President)
Dr. Mayank Shashtri (Vice President)

tmosley's picture

Aww, cyberstalking now?

One of those guys is a supplier, one is retired, and the last is a colleague and trusted friend.

tmosley's picture

Like I told your other incarnation, William the Bastard, you really shouldn't talk to yourself.  It makes people think you are crazy.

JW n FL's picture

dont feed the idiots...

you are smart enough to get this.. so I will say it striaght..

let yourself be entertained by these people, that is thier only use in this world. Be thankful that you are entertained, most are not.

and I will give everyone some safe numbers to buy to and to sell from.. this is not for you "T"


Silver $100.

Gold $2,200.


You can buy and then sell there after safely.. there are others who will tell you $150 is safe and Gold $2,800 is safe.. I would agree, but I am keeping it simple for those who dont have a clue and are stupid enough to fuck up simpleton instructions.


the part I found "Typical" or "Pedestrian" was you are looking for tmosley and not offering up who you are? Which tells me a couple things about you.. Mr. Multiple Name Changing Wanna Be Troll. one you think you can have power over someone by figuring out who they are, which means you are a fucking coward who fears being known.


The Troll here are the crème’ de la crème’ of trolls! You are not worthy of the title. Here at least.


So let’s hear / see your one line drivel of complaint, come and regale me with wit of your circumstance.