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CME Hikes Silver Initial And Maintenance Margins By 9%
The world's most telegraphed call comes and goes, however since it has been priced in about 7 times already, has absolutely no impact on the price of silver. And yes, we were off by about 8 hours. Also, for those who observed this is the third margin hike in as many months (previously here and here) with neither doing anything at all to halt the price surge, you are absolutely correct.
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If you're not familiar with Moriarty's history, you shouldn't be posting out of your ass. The man has been wrong, calling a top for silver in the $30's. There, you are now up to speed.
If you don't like Bob forget about him. Try not to be rude. I wasn't rude to anyone.
So do you think it is a good idea to buy an asset that has gone parabolic in the last few months? Does this remind you of NASDAQ towards the end of 1999 and first quarter of 2000 when there was an absolute conviction that tech stocks cannot crash?
In 1999, I was a 26 year old MIT grad working near Dupont Circle at a hip little company called enews.com. what was the revolutionary new innovation that we had that called for about $150 million dollars in capital from some super smart venture capital guys?
We sold magazine subscriptions on the internet. We paid on average $40 in advertising costs for every $15 magazine subscription we sold... and I helped put together the presentation to get our last $100 million in financing. When I realized how stupdi the whole thing was I wanted desperately to short many companies(we were paying Yahoo and many others for our ads).
This is different...my dads bond trader friends told me how smart I was for working in e-commerce ...At this point I am just known as the outwardly normal but privately insane conspiracy theorist.
So no, I don't think that prescious metals now = tech stocks 2000
The fact that you compare the shortage in physical silver to the internet bubble tells me you missed 3 bubbles: the NASDAQ, the real estate collapse, and missed the boat on precious metals. Sorry if that sounds rude, but the truth hurts. But don't worry, you had company, as 95% of the people got caught with their pants down with the high-tech buble (including yours truly), as well as the real estate bubble (I managed to side step that one). And as another ZH poster said: denial and nostalgia never end well. For what's worth I've been riding gold up since it was 270 and was late to the party with silver waiting until Nov. 2008 when it was below $10. But I was lucky enough to nab SLW in the $2's. And I heard bubble talk at $15. lol Silver will be $400 by the time 2015 comes around, so a few dollars here are there are rounding errors.
Looked at SINA lately? I don't hear any top callers on SINA.....
Sheep you became a Pimple - Precious Metal Sheeple. Time to pop the Pimples.
Says the moron who registered 5 weeks ago.
Get the fuck out of here, troll.
good call...bet against it at your own peril!
oh, yeh buy mining stocks. sure .........
actually they were down hard today. isn't that interesting..."price of their asset goes up" but when "margin rates suddenly go up their stock prices go down." Couldn't have anything to do with the producers hedging of course. Why would the folks who "have all the silver in the world" hedge?
over the years i have heard people who invest in these things talk about it and a lot of times they are getting hosed.
Where the hell are all these anti silver trolls coming from...
I heard they emerged from Usenet after the great flame war of '99.
http://www.youtube.com/watch?v=FMEe7JqBgvg
From JPM borg unit # 35.
"Where the hell are all these anti silver trolls coming from... "
What a horribly derogatory term you use. But to answer your question the silver spec's are realizing something called:
The peak.
Or at least it's time to sell enough to have a risk free trade.
Let's do it.
"The Peak"
Against what ???????????????????????
The Dollar ??????????
Sea shells ??????????
Cattle ???????????
Skittles ?????????
Pixie Dust ??????????
AGAINST WHAT !!!!!!!!!!!!!!!????????
Easy:
Bernanktopia
We are from the gubbmint we are here to help sarc/off
We are here trying to prevent the last of the herd from getting a severe haircut so they can be around at 30 to bid it back-up you fucktard.
Everyone should note the date of registration of the above faggot, and the faggot above him.
1 day apart. Both trolling their little troll hearts out. And posting consecutively.
Getting a little scared T. BTFW I can think for myself and I do.
Why is everyone so scared of a healthy correction it's part of a normally functioning market.
You trolls always think you are special when you get "The Treatment" from me. Guess what? You aren't. You are not a unique little snowflake. You are the next wad of tainted meat being thrown down the meat grinder with all the other trolls and top callers that came before you.
"This time will be DIFFERENT!"
Why people mistake contempt for fear is beyond my ability to understand.
You're on thin ice. Keep it up and Judge Judy will be presiding over our case!
Been long gold since 270 in 1998 and 2000--in Thailand. Been long SLW in the $2's from November 2008. It's been house money since $4. Long FRG in the low single digits before exiting $14 with Newmont take out. Been long PZG since $1.60, which was a bad buy since it hung around $1.20 for a long time. Tell us how many top calls this is. A half dozen? Stupid shit-for-brains thought silver was in a bubble at $14, and gold was in a bubble at $900. We need idiots like you.
You mean I should buy GDX which includes a lot of Barrick which is diluting itself by buying Equinox, a copper miner? No thanks! I'm buying physical gold and physical silver.
"Sell silver and buy gold mining stocks."
LOL. Miners are getting nationalized.
With Silver crimex OEX tomorrow. This doesn't work to manage call options for delivery down to a manageable number; May delivery. It's canned bacon! porking pig men will be flying out of windows, to a vermin rat bastard death...
I don't care what the CME does because I don't trade paper, I'm buying physical silver hand over fist.
Eventually, the physical market will dominate the paper market. Asians especially are getting physical, and they're only getting started.
True that, and the Asians aren't going to stop until they have all of it. we're on the same gameplan, that avatar is pretty cool btw
www.forecastfortomorrow.com
Marging hikes are not implemented in order to halt a price rise. People who think that are clueless. They are implemented in order to keep up with the price and volality in order to protect exchange members when a counter party blows up.
SI had a margin of a little over 2k just 10 years ago. Maring req's go up and down with volatility *AND* price. Too hard to understand for conspiracy theorists.
If you're long silver @ $48 would you be happy if your counterparty (who's short) only put up 2% in capital to guarantee his position? Or would you sleep better if he had to put up 25%?
Margin hikes are a good, healthy sign of an orderly, properly working futures market.
If they set the margin requirements as a percentage of the spot price, and not idiotically at a fixed dollar value, then there would be no need for ANY margin requirement "adjustments", would there?
Even the US Post Office has given up trying to endlessly adjust their stamp prices to a steadily depreciating dollar by introducing their "forever stamps". Why can't the CME introduce "forever margin requirements", as a percentage, in a similar fashion?
Really, this is just as stupid as states fixing gasoline taxes in cents per gallon instead of as a percentage of the total sale, and then repeatedly having to fight and debate over raising them to coincide with rising gas prices due to the depreciation of the dollar.
Percentage of underlying doesn't account for volatility, that's why do they do it by discretionary amounts.
Huh?
Don't you have that exactly backward?
Percentage margin requirements would EXACTY keep up with the spot prices --- fixed dollar amounts do not. The more I think about it, the more insane the fixed dollar requirements actually appear.
It is a very thin argument but volatility could be high or low at any given price so that a margin adjustment based just on a fixed percent of asset price increase might not truly represent volatility risk.
However they could base it on an open formula that is easy to calculate versus a seat of the pants system they have now which benefits insiders due to its somewhat unpredictable nature.
I take it you didn't pass remedial math.
You said it fat liver. I have been meaning to point this out, thank you for saving me the trouble.
Yup, especially when the OI leans heavily onto the side of the longs.
Doji on the daily spot chart signals reversal. If you don't know it or can't see it risk is coming off and dollars aere coming home.
How do you all buy this bullhsit of no effect, what is a 6% reversal in 12 hours (and I'm giiving you a 1.5 percent because the low of the day was 45.61 which makes it 8.5 %).
I'm from the gubbmint and I'm just trying to help sarc/off
Silver is looking at a 40% haircut from 49.87 which takes you back to 30.
I will be enjoying the ride down in paper and load back up on physical at 30.
Silver bugs Defcon 1, alert Defcon 1 hit the junk button.
'load up on physical at $30'
Your telling people who bought in the teens its gonna crash so you can buy in the 30's...how fucked up is that?
Weakhanded pillow biting wagon chasers like you will never ever learn.
Beautifully said!
Did you sell your silver today? I hope so, because it is headed to the low $30's. Today was just a shot across the bow.
Beat it, troll --- you have NO credibility left here, after having had your numerous lies exposed, and your obvious agenda as a PM-bashing troll having been demonstrated too many times to count.
No credibility after I am now green on my puts??
Please. How did you like today? It was only a minor red day, but oooooohhhhhh is it going to hurt you over the next few months.
Uhh, yeah, except you are lying, unless you tripled down in Asian trading.
Knife catching moron.
I am akak. Hey whatever happened to I am chumbawamba.
I actually did triple down this morning on the open. But I mentioned that early this morning, which I am sure you will not believe.
No matter, it's going much lower and then you will have to acknowledge the green.
I think it's hilarious that you are bragging about being green on fucking interday noise.
What are you, fucking retarded or something?
That was not noise. You will learn.
well, if it isn't another altruistic zh poster so very concerned about the financial health of other folks.
I often wonder at the zeal against anyone who may suggest silver has topped for the year.
It's like a bunch of rabid chimpanzees here.
And yet you keep coming back --- so just what does that say about you?
Oh yes, I forgot --- it's out of the goodness of your heart, to "help us".
To protect us from our "greed" and "irrational fear".
Get the fuck out of here, troll.
What does it say about you that you cannot listen to reason?
Funny how so many of the PM-bashing trolls I have encountered in the last several years online, from the DailyPaul to the Kitco forum to MarketWatch to SeekingAlpha to this forum, and in many others as well, just love to claim to be "the voice of reason". And yet ALL of them have been consistently, and in hindsight wildly, incorrect and flat-out wrong.
Beat it, troll --- your cover is blown, your lies have been exposed, and your malicious agenda has been revealed.
No lies, no agenda.
Just a guy that says silver is going to the low $30's.
I am the greatest threat to you tinfoil peeps.
Jon Nadler, don't you have a Ponzi PM account program to set up somewhere, or yet another PM-bashing agitprop piece to write for Kitco?
Clowns that talk trash like you usually have nothing. You talk a big game because that's all you can do - talk. Do you even have a job? You're about as significant as a piece of dog crap on the sidewalk.
Go look SINA up, then go to talk in the basement about the top there. IMHO there is a huge difference between paper silver, slv or other's and physical silver, that is what you are missing if you care to listen to what other's are saying.
You might want to listen to the post here, there are some very sharp people you are splashing on. Just read for awhile and you will see.
Better chimps than a skunk like you.
Red one day out of how many? And how is red going to hurt physical over a few months?
Your full of shit and you know it. I'll bet last night you where sitting in the corner sucking your thumb if and that is if you had ball's enough to carry a position over the weekend.
Most traders are backing of waiting for the bernaked to speak. Make you a few bucks on your put's while you can, we will be back to eat your liver after fucking off a few day's.
CME or COMEX is a financial terrorist organization.
Case in point: During the in/famous Hunt's brothers "cornering" of the silver market, not quite a few members of the COMEX board just happened to be on the opposite side of the Hunt's brothers long position on silver, i.e., these board members were shorting silver and silver price was going through the roof.
So, what did these early-day JPMorgan and HSBC good old boys do?
They decided to use a little muscle and changed the trading rules for COMEX (whose board they were sitting on), hum sounds familiar?
"On January 7th of 1980 the COMEX changed their rules to only allow 10 million/oz of contracts per trader and that all contracts over that amount must be liquidated before February 18th." The very next day.
It just so happens that the Hunt's brothers had a bit more than 10 million oz in COMEX silver contracts and not enough cash to cover those contracts, so they had to liquidate!
Nothing really changes except the characters and the Ponzi Scheme names that are reported in the lamestream media.
http://www.gold-eagle.com/editorials_04/laborde012704.html
Bothsidesnow....
Thats where I would smack you a few times each before you knew what hit you ,you sach of shit..
Take a fucking hike.
Bothsidesnow....
Thats where I would smack you a few times each before you knew what hit you ,you sach of shit..
Take a fucking hike.
Hey Dangertime... You and Bothsides now are probably sitting side by side,gently rubbing each others groin region and smiling softly at each other....
FUCK OFF TROLL.!'S
Oh my, somebody bought at $49.
It must truly suck to be you.
Someone can't tell the difference between anger and contempt.
No-one here holds anything but contempt for you. You are just another stepping stone. Another body thrown into the rive to form a literal "troll bridge" to the new monetary regime.
I hope you enjoy the sensation of drowning, because that is all you are going to be feeling over the next few weeks. Even if you were right, you are catching a falling knife, and will still lose everything as the markets stay irrational longer than you can stay solvent.
Enjoy your poverty, chum.
He can't lose everything because he's got nothing. You think some jackass like that can actually accumulate capital? He brags about buying puts at 22, 24, 26, 28... What a freaking joke!
No I actually bought .11 cent weekly calls friday at noon and sold this am for .34 cent's. Was not a good choice to hold over the weekend but paid off as usual.
Enough to buy two more monster boxes you put buying moron. Holding puts or calls right now are suicide IMO. Unless they where purchased in the 25-32 dollar range.
If you really are playing put's on slv, be very careful holding anything overnight or over the weekend. In and out day trades quickly is the safest route. If you do get lucky enough to make a profit, listen to the people here, take those profits and get physical metals.
There is a reason for the why on physical, don't loose sight of hedging yourself with physical. Do yourself a huge favor and do some reading here,
Why am I wasting my time, I'm going back to reading some inteligence.
Another example of tightness in physical? Not giving up mine!!!Here's an email I just received:
APMEX Wants To Buy Your U.S. Mint Products!
Dear xxxx,
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We Want These Products:
We will pay you $38.00 over the current spot price of Gold for your Gold American Eagles. ANY year, ANY quantity! We will pay you $3.00 over the current spot price of Silver for your Silver American Eagles. ANY year, ANY quantity! We will pay you $1,250.00 for your 2010 America The Beautiful 5 oz. Silver coin sets.Once we have purchased enough of these products to meet our current demand, this offer will end! YOU MUST ACT NOW!
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The American Precious Metals Exchange
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Methadone man won't even read this.
I was just thinking hasn't he been here since $17 dollar Silver and $1035 Gold preaching the same thing. ?
I love him using the word "reason"
Gosh' is that funny !
Is he the ultimate Contrarian Indicator or what ??
When he shows up wait for the dip and BTFD !
He and Nadler have a 100% "for sure" record on this trade !
Dang.
Did I miss out on a topcalling junk war?
Can't you guys give me a shout next time so i can join?
A new theory. Silver should be priced not in dollars, but in HOURS!
How can any day trader gripe about these new margins anyway? 5000 ozs. of Argent was worth around $233 grand at $46.77/oz. To benefit from the trading action of 5000 ozs. of Silver a trader needs to come up with less than 10% of the total price of the contract. That's minus membership fees of course. I have to pay above spot price when I buy my tiny amounts. Is this article criticizing new margin requirements because it sounds like the big rock candy mountain to me.