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CME Hikes Silver Margins By 17%: 4th Hike In 8 Trading Days

Tyler Durden's picture




 

Nobody could have foreseen this. Nobody. At this point there is nothing left to comment on what is a concerted action to "mitigate" any and all risk in the commodity market but could as well be classified as executive order 6102.5. While we were joking before that soon one will have to post more cash than an silver contract is worth, we are now forced to reevaluate this sarcasm.

CME Silver

 

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Wed, 05/04/2011 - 17:42 | 1240429 Vagabond
Vagabond's picture

Do they offer any explanation at all as to why they feel the need to do this in parts?

Wed, 05/04/2011 - 17:41 | 1240457 Thorlyx
Thorlyx's picture

Why buy paper anyway ? Physical sellers do not ask for margins. Just pay the full price and be done with it.

Wed, 05/04/2011 - 17:50 | 1240517 Cleanclog
Cleanclog's picture

Leverage.

Wed, 05/04/2011 - 17:49 | 1240532 Thorlyx
Thorlyx's picture

Yeah, right.

You can make a small fortune with leverage. Provided you started with a bigger one.

Wed, 05/04/2011 - 18:07 | 1240643 MrBinkeyWhat
MrBinkeyWhat's picture

That is my favorite saying about the publishing business: To make a small fortune in publishing, start with a large one.

Whoa!

Wed, 05/04/2011 - 18:17 | 1240686 Xibalba
Xibalba's picture

Corrupt muthaGOLDMANcocksuckerGENSLERmotherfucker!

Wed, 05/04/2011 - 18:45 | 1240838 Xibalba
Xibalba's picture

...you'll all see.  A 100% all cash + premium will soon be instituted...and the prices will still rise...then comes confiscation.  

Wed, 05/04/2011 - 18:48 | 1240848 akak
akak's picture

Release the (Bern)Kra(n)ken!

Wed, 05/04/2011 - 19:04 | 1240950 nope-1004
nope-1004's picture

The ground work is being laid for QE3.  That's how I see this.  They know QE3 or some variant thereof will give PM's strength.  Beat it back down now and a new round of toilet paper can be printed going into H2.

 

Wed, 05/04/2011 - 19:25 | 1241085 acrabbe
acrabbe's picture

options are the smartest way to buy or sell with leverage. Any other way and you are exposing your belly to the armed thieves.

http://slv.collective2.com

 

Wed, 05/04/2011 - 19:24 | 1241094 Gold 36000
Gold 36000's picture

Burn it down.  Hit the reset button.  Gold 36000 for president.

Wed, 05/04/2011 - 21:19 | 1241515 TwoShortPlanks
TwoShortPlanks's picture

It may be safe to say that the volitility in Silver of late indicates an attempted period without any QE...it will of course fail, and the US Dollar will die. Any QE program to come will be too late; fear in the markets will spread faster and wider than any liquidity injection.

As of 10am yesterday, the Perth Mint had 3 x 10oz Silver bars left in inventory...yes, I cleaned them out but left some crumbs...I even bought off people in the line waiting to sell...LOL!!!

Price no longer exists.

Thu, 05/05/2011 - 07:53 | 1242380 GetZeeGold
GetZeeGold's picture

 

Confiscation is now...by the idiots lining up to sell.

 

The endgame approaches.

 

GetZee hit the chute........as the ground gave way.

 

I am now taking all the physical I can find.

 

.....and the idiots are still not taking action.

 

You can't fix stupid.

 

 

Thu, 05/05/2011 - 02:56 | 1242174 Michael
Michael's picture

I just thank God there are 200 million+ firearms in the hands of ordinary citizens. Just let them try to steal our gold and silver from us this time.

Every government agent will be targeted for death if that happens this time around.

Thu, 05/05/2011 - 03:22 | 1242191 The Navigator
The Navigator's picture

And I would encourage the 80million firearms owners to also get (1) hearing protection, (2) breathing protection, (3) eye protection, (4) night vision equipment and (5) body armor - tho I suspect many of us already have that. Because this godzilla won't go down without a fight and it has a lot of high tech gadgets that out-do a 30-30.

Maybe the least costly fight is to educate our fellow countrymen as to the evils and corruption that have infected the system And that the right fight is to eradicate the Borg. I fear time is running short to do this; still, there may be a few minutes left of the clock.

Wed, 05/04/2011 - 18:13 | 1240684 Id fight Gandhi
Id fight Gandhi's picture

You're missing the point buying paper silver or on margin. If I wanted to chase moment I'd go after the momo stocks instead.

Fiat is shit, holding cash means it wastes away, no interest paid anywhere so where else do you store wealth safely? Gold n silver.

Wed, 05/04/2011 - 18:32 | 1240780 Pladizow
Pladizow's picture

So what' the total of the 4 hikes?

Wed, 05/04/2011 - 17:48 | 1240525 AR15AU
AR15AU's picture

Anyone else notice that HL and CDE couldn't even fall today? They've hit rock bottom. No tricks are left in the playbook. 

Wed, 05/04/2011 - 18:21 | 1240719 candyman
candyman's picture

36

Wed, 05/04/2011 - 18:20 | 1240727 candyman
candyman's picture

yes they are a easy trade, Remember that HL reports on the 9 th

.10-.15 with avg of .12

Wed, 05/04/2011 - 18:32 | 1240761 Pladizow
Pladizow's picture

Carlos Slim selling silver futures to hedge his mine.

Wed, 05/04/2011 - 18:41 | 1240824 Quinvarius
Quinvarius's picture

At 18 he sold hedges.  LOL.  Lets keep the time line correct.

Wed, 05/04/2011 - 19:09 | 1240963 Pladizow
Pladizow's picture

Thank you for confirming my statement is correct.

Wed, 05/04/2011 - 21:26 | 1241553 TeMpTeK
Wed, 05/04/2011 - 23:30 | 1241900 Manthong
Manthong's picture

I wish someone had a good take on why, even with Crimex and SLV being a shiny hologram, why PSLV isnt a reasonable (but premium priced) call on Ag until PSLV units can be sold off for fiat and exchanged for personal metal. 

Does anybody think that PSLV could break from Crimex spot and more closely track the physical market?

Thu, 05/05/2011 - 05:14 | 1242237 DrStrangelove
DrStrangelove's picture

umm, leverage

Wed, 05/04/2011 - 17:47 | 1240514 HelluvaEngineer
HelluvaEngineer's picture

I sincerely hope that everyone is doing their patriotic duty and buying physical silver at sub $40 prices.  Everyone is expecting it to go to $35 and then take off like a rocket, which means that it probably won't.

Wed, 05/04/2011 - 17:53 | 1240541 Sierra Hotel
Sierra Hotel's picture

I am expecting that it will, which means that it won't.

Wed, 05/04/2011 - 17:57 | 1240589 JLee2027
JLee2027's picture

39 is the bottom.

This is it. Get physical while you can at a discount. 

Wed, 05/04/2011 - 18:05 | 1240627 Hearst
Hearst's picture

I'd say wait till Monday and see where the price is at and if any further hikes are anounced for later in the week.  Either way, dry powder, ready to fire.  

Wed, 05/04/2011 - 18:20 | 1240708 augie
augie's picture

on my walk home i stopped in on a random rare coins dealer on 57th street. Guy said he's out of eagles but has "500 coming in" only 500? i bought a 10 oz troy on the spot. I'd love to buy more but at the same time i'll feel like a dick if it goes to 25. When a dealer is hoping for 500 eagles in two weeks I start to wonder if 39 isn't the bottom.

 

If i'm a tool and it goes to 10 you can all say what a jackass i am, but at least i listen to my instincts. Besides, its only money.

Wed, 05/04/2011 - 18:50 | 1240876 flacon
flacon's picture

I bought 500 Maples today. 

Wed, 05/04/2011 - 20:08 | 1241265 Captain Benny
Captain Benny's picture

What place on 57th?  I need to stock up...

Wed, 05/04/2011 - 20:26 | 1241329 augie
augie's picture

"stacks" is the name. addres is

 

123 west 57th street. inbetween 6th and 7th. Cool place its a family business since "1935" according the the card. I'm not sure what you are looking for but they had some kilo's for sale. A little to much for my budget right now unless the /es drops another 40 handles...

Wed, 05/04/2011 - 18:48 | 1240880 Quinvarius
Quinvarius's picture

No one is actually offering a discount.

Wed, 05/04/2011 - 19:12 | 1241016 Chappaquiddick
Chappaquiddick's picture

No zero is the bottom and that is where this is headed.  They are clearly signalling with these marging hikes that the market cannot cover the millions of outstanding ounces on this cycle - they are upping these margins in the most bearish way possible to shake out every hand they can.  If we stand for delivery the market will collapse as they don't have and can't source the metal needed.  This is game over for the comex.  BUY and stand for delivery and lets blow these fuckers out of the water.  This has been going on for too long and the corruption is so obvious and so all encomnpassing - this market needs to be broken and these odious criminals need jailing. This way is the only way - fuck the lot of them.

Wed, 05/04/2011 - 18:13 | 1240672 Whalley World
Whalley World's picture

Just ran up the street and picked up a 100 oz Bar at $3940 (CAD).

I love it when the Evil Doers on the Comex and JPM discount my Shiny Stuff!

Wed, 05/04/2011 - 18:56 | 1240882 spooz
spooz's picture

Waiting for Eagles to come down on ebay, but they are still going for $50.  Where do you find sub $40 physical?

Oh, guess I could take delivery on a comex contract, but 5 1000 oz bars? Not much arb opportunity there.

 

Wed, 05/04/2011 - 18:59 | 1240926 KinorSensase
KinorSensase's picture

i am so fucking patriotic that my rent is gonna be late.

Wed, 05/04/2011 - 20:27 | 1241334 augie
augie's picture

just tell em'

"loook maann I ain't got no money to pay the rent..."

Thu, 05/05/2011 - 02:37 | 1242157 AgShaman
AgShaman's picture

George T.

One of the best concerts I've been lucky enough to catch.

Thanks for the reminder

Wed, 05/04/2011 - 23:37 | 1241909 Manthong
Manthong's picture

Yeah, and how many people realize how hard it is to move this crap around when you are saddled with a stash that requires a comma to total.

Patriotism is a heavy responsibility.

Thu, 05/05/2011 - 01:48 | 1242117 dark pools of soros
dark pools of soros's picture

easy..check @ 1:59 in this vid

http://www.youtube.com/watch?v=BGSlZGy3gpU

 

Thu, 05/05/2011 - 02:55 | 1242168 Manthong
Manthong's picture

Pretty bars,  nice God nod. Premium looks steep though, site appears to ask near $400 on 100 oz.

I'm used to $100 or so on Englehards.

Oh, yeah looks like a 9mm and a couple .40's on a 10 oz. Does that mean I can appropriate labor to haul them?

Wed, 05/04/2011 - 17:55 | 1240531 Rynak
Rynak's picture

Their excuse for doing it, which is the same as that one used by the troll brigade, is that it is done because the silver market is so volatile. The problem is that those hikes strongly helped making silver as volatile as  it is now, in the first place!

So, it's cause and effect mixed up..... and some kind of selffullfilling prophecy... they don't like the high silver prices, and justify the hikes by "high volatility".... then after they repeated this often enough, these measures result in a silver market that is actually "volatile". At that point, they in terms of argumentation have reached a loop.... do it because of the volatility that is caused by doing it.

Wed, 05/04/2011 - 18:30 | 1240656 akak
akak's picture

Like the burly white trash husband to his meek and frail wife:

"It's all your fault! Why the fuck are you always making me beat you?!"

Wed, 05/04/2011 - 19:00 | 1240816 strannick
strannick's picture

To paraphrase Chris Rock on domestic violence:

CME's Jeff Christian: "I neva, eva, EVA hit a (silver market), but I shore shake the shit outa her"

Meanwhile CFTC Commisioners Dunn Omalia and Sommers sit drinking malt liquor on the front yard next door and shout 'atta boy Jeff, hit 'er agin! (with another margin hike) Show her whose boss!'

Wed, 05/04/2011 - 18:49 | 1240888 flacon
flacon's picture

Wives can be just as cruel. "Now see what you made me do!"

Wed, 05/04/2011 - 20:41 | 1241375 Hephasteus
Hephasteus's picture

One of the methodologies of cruelty is mocking and instigating a fight with a weaker opponent. Gives you an excuse to say they brought it on themselves.

See bankers with psychopath armies flaunting 2008 to 2011.

Wed, 05/04/2011 - 17:53 | 1240552 Dr. No
Dr. No's picture

They are doing in parts to allow a few select large specs to unwind long positions and to add to short positions.

Wed, 05/04/2011 - 18:14 | 1240683 Hook Line and S...
Hook Line and Sphincter's picture

Continuous reminder to the weak of hand that they better bow down to their paper lords Will. 

Wed, 05/04/2011 - 17:38 | 1240438 Hearst
Hearst's picture

CME COCKSUCKERS!!

Wed, 05/04/2011 - 17:38 | 1240439 Roy Bush
Roy Bush's picture

Boy oh boy, am I taking a bath....

Wed, 05/04/2011 - 17:43 | 1240476 tmosley
tmosley's picture

Eliminate your margin, and go all physical.  No pressure on those of us who are doing that.  Well, some.  That is, trying to time the next buy.

Wed, 05/04/2011 - 17:44 | 1240494 Ray1968
Ray1968's picture

Same here.

Tyler rightly points out the hypocrisy of not raising margins on the Mini S&P. Evidence of hypocrisy, fraud, manipulation.

Wed, 05/04/2011 - 17:54 | 1240533 hambone
hambone's picture

And you expected what? 

Get over it from here on...there is a war being waged to maintain TPTB...if you are on the other side, you risk everything. 

Hard money is revolutionary and threatens TPTB.

It may be a risk worth taking but risk all the same.  And the risks will only likely become more grave regardless leverage or physical.

Understand this.

Wed, 05/04/2011 - 18:00 | 1240591 cossack55
cossack55's picture

I have been at war with TBTF for years.  All wars have csualties. I'm still breathing and still buying the dips. I will never sell. These are Estate Purchases. Like antique furniture and fine art, only portable and easily hidden.

Wed, 05/04/2011 - 18:34 | 1240805 DoChenRollingBearing
DoChenRollingBearing's picture

Exactly right cossack55.  Estate Purchases, nicely put.  To be quietly given away.

Wed, 05/04/2011 - 18:45 | 1240859 Hulk
Hulk's picture

Our $1500 drink on Friday night DCRB?

Wed, 05/04/2011 - 17:41 | 1240440 Id fight Gandhi
Id fight Gandhi's picture

Are they in on the manipulation? When was the last time anything had margins hiked this much in a short period of time?

Wed, 05/04/2011 - 17:44 | 1240458 Burnbright
Burnbright's picture

I've been reading market news for the last three years for at least an hour to two a day and never heard of anything like this.

Wed, 05/04/2011 - 18:21 | 1240737 Id fight Gandhi
Id fight Gandhi's picture

They're obviously doing these hikes to protect investors.

ES is just too safe.

Wed, 05/04/2011 - 18:15 | 1240697 Hook Line and S...
Hook Line and Sphincter's picture

Stop playing in the crooks corner. Buy physical and focus on something else.

Wed, 05/04/2011 - 17:41 | 1240441 Goofy Bastard
Goofy Bastard's picture

God damn things must be close to a major breaking point.

Wed, 05/04/2011 - 17:57 | 1240587 Creed
Creed's picture

God damn things must be close to a major breaking point.

 

 

no shit

 

I smell something burning

Wed, 05/04/2011 - 18:15 | 1240695 Eternal Student
Eternal Student's picture

The Comex Gold and Silver vaults are on fire.

It's a funny thing, though. I didn't think that PMs could burn.

 

Wed, 05/04/2011 - 20:41 | 1241396 Fagin_Lives
Fagin_Lives's picture

They can if they're made of nothing but paper.

Wed, 05/04/2011 - 17:42 | 1240443 JustPrintMoreDuh
JustPrintMoreDuh's picture

Circling drain.  Speed increasing.  Keep firing assholes!

Wed, 05/04/2011 - 17:58 | 1240580 Crack-up Boom
Crack-up Boom's picture

lol!  A comma between "Firing" and "assholes" would make this comment much less funny.

Wed, 05/04/2011 - 18:23 | 1240734 Troublehoff
Troublehoff's picture

I like the way you think, Crack-up Boom...

I'm with you on the Crack-up Boom prediction too.

Wed, 05/04/2011 - 17:42 | 1240444 Id fight Gandhi
Id fight Gandhi's picture

Shitnbc had a news alert that Carlos slim was selling silver futures.

Wed, 05/04/2011 - 17:49 | 1240518 Calculated_Risk
Calculated_Risk's picture

Yeah, they were also screaming how the high volumes in slv is "lunacy!!!!"

 

Wed, 05/04/2011 - 17:54 | 1240544 Missiondweller
Missiondweller's picture

Isn't it interesting how they ignored silver's rise but are covering its decline hour by hour?

I have no respect for them, none at all.

Wed, 05/04/2011 - 17:58 | 1240576 Id fight Gandhi
Id fight Gandhi's picture

Only thing that matters is momo stocks and spinning news. Little wonder their ratings suck balls

Wed, 05/04/2011 - 17:59 | 1240601 ZapBranigan
ZapBranigan's picture

Totally dude...couldn't have said it better myself.  Unreal.

Wed, 05/04/2011 - 17:42 | 1240447 Burnbright
Burnbright's picture

HAHAHAHA 4 margin hikes and silver is only down 20%. Bring it comex. Fix that price dipshits, it will be the end of you.

Wed, 05/04/2011 - 18:04 | 1240629 JLee2027
JLee2027's picture

My guess is these extensize and coordinated margin hikes were the ace up their sleeve, and it didn't work. 

Silver appears perfectly stable to me at 39. We consolidate and then it's upward again.

Wed, 05/04/2011 - 17:40 | 1240449 Yen Cross
Yen Cross's picture

Off shore. CFD's. 2%

Wed, 05/04/2011 - 17:45 | 1240452 mynhair
mynhair's picture

I luv it.  Project 13 more to get to 100%.

Wed, 05/04/2011 - 18:11 | 1240661 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

I think they only need to get down to the point where JPMs back in the money. Of course, if they did kill it 95% down (on paper) that'd be fine too.

Wed, 05/04/2011 - 17:44 | 1240461 A_MacLaren
A_MacLaren's picture

If the amount of margin is supposed to be relative to the value of the contract, why are Margin Requirements still being raised as the price is falling?

Wed, 05/04/2011 - 17:46 | 1240487 Burnbright
Burnbright's picture

Captian obvious: Because they don't have silver?

Wed, 05/04/2011 - 17:46 | 1240489 mynhair
mynhair's picture

To hammer paper, dear boy.  Buy the miners now.

Wed, 05/04/2011 - 18:35 | 1240798 NidStyles
NidStyles's picture

Already started that last week when the first down turn started.

Wed, 05/04/2011 - 18:33 | 1240799 NidStyles
NidStyles's picture

Already started that last week when the first down turn started.

Wed, 05/04/2011 - 17:51 | 1240501 Yen Cross
Yen Cross's picture

If you have the means.  5,000 TOZ XAG contract @ 50:1 is tick by tick 39.34 times 5000 is 196,570.0  Divide by 2 and pick your posistion size! Just watch your Base Margin! That is all I pay attention to. It's all about margin, not leverage!

Wed, 05/04/2011 - 18:00 | 1240618 cossack55
cossack55's picture

If I understood what you just said, I might be tempted.

Wed, 05/04/2011 - 18:25 | 1240699 Yen Cross
Yen Cross's picture

I stand corrected. Thank You. 5000 (toz /xag)x2% xag is (4000 usd) @40.00.(xag) @ 50:1

Wed, 05/04/2011 - 18:50 | 1240878 akak
akak's picture

You forgot the MethMan coefficient:

X ($5 to dig from the ground)

Wed, 05/04/2011 - 20:22 | 1241306 Sabibaby
Sabibaby's picture

Sweet, you'll give me $5 for each shovel full of dirt!?

Wed, 05/04/2011 - 18:15 | 1240681 Yen Cross
Yen Cross's picture

Your margin cost is current xau price ( leverage your choice) ME 50:1. 2 percent of 200k is 4000. Your account margin is your business.

Wed, 05/04/2011 - 19:42 | 1241164 acrabbe
acrabbe's picture

Yen Cross. You appear to be a real trader. I just took my trading account public for consumption by the unknowing masses. Tell me what you think. You might even be moved to subscribe and/or autotrade.

http://slv.collective2.com

Wed, 05/04/2011 - 17:58 | 1240584 CrockettAlmanac.com
CrockettAlmanac.com's picture

If the amount of margin is supposed to be relative to the value of the contract,

 

Not my area of expertise but I believe that the margin is a fixed dollar amount per contract for a fixed amount of silver (1000 oz?)  and is not calculated as a percentage of the value of the silver.

Wed, 05/04/2011 - 18:04 | 1240631 A_MacLaren
A_MacLaren's picture

(It is/was a rhetorical question... The criminal actions and intent of the Paper Price Suppression Silver Cartel are obvious.)

Wed, 05/04/2011 - 17:44 | 1240467 gimli
gimli's picture

This is starting to sound like an SNL skit

Wed, 05/04/2011 - 17:47 | 1240493 tmosley
Wed, 05/04/2011 - 17:47 | 1240516 gimli
gimli's picture

....... yes, more cowbell ......... LOLLLLLLLLLLLLLLLL

Wed, 05/04/2011 - 17:50 | 1240519 gimli
gimli's picture

....... yes, more cowbell ......... LOLLLLLLLLLLLLLLLL

Wed, 05/04/2011 - 17:45 | 1240472 Hal n back
Hal n back's picture

Pretty soon CME wil be competing with Tulving.

Wed, 05/04/2011 - 17:43 | 1240475 mr. mirbach
mr. mirbach's picture

And how exactly does this effect JPMourge?

 

Wed, 05/04/2011 - 17:43 | 1240477 Re-Discovery
Re-Discovery's picture

Idiots on CNBC said it's because of all the volatility.  Immediately, as if someone was pulling a string in their back.  Reeaally?  Thanks guys for that incisive and questioning reporting. 

Wed, 05/04/2011 - 17:53 | 1240484 plocequ1
plocequ1's picture

Gee, Who didn't see this coming? You are dealing with a power greater than The almighty himself. Denninger warned about this. Like little kids playing with matches, You get burned. Im Just playin', Im just sayin'

Wed, 05/04/2011 - 18:00 | 1240592 dumpster
dumpster's picture

plocequ1

 

  denneenger warned // yep the guy who said you cant have sex with gold

 

  the guy who looks in the mirror 6 times and day and says yes

denneger the guide and profound guru of gurus

 

are you changing your diapers yet for new bee ,, in the markets guy where denneger is the new pivot point

 

so you just bought a new lap top and found how to bookmark

 

Wed, 05/04/2011 - 18:42 | 1240831 DoChenRollingBearing
DoChenRollingBearing's picture

Ha ha ha, dumpster!

Good seeing you around.  If you see Hulk, tell him it's OK to have that drink he asked about at gold at $1500.

We should all meet if/when we reach FOFOA's $50k and have a REAL party!

Wed, 05/04/2011 - 18:49 | 1240886 Hulk
Hulk's picture

Right here DCRB. Keep swinging Dumpster, they have been on our ass since $18 and $900, LOL! How about that $1500 drink Friday night DCRB?

Wed, 05/04/2011 - 18:01 | 1240623 Creed
Creed's picture

lol @ Denninger & his sycophants

 

he's been in a mad funk for months over silver,

years over the rise in metals

 

 

 

Wed, 05/04/2011 - 18:06 | 1240638 mynhair
mynhair's picture

Doucheinger just can't reconcile that he voted for ODammer.

Wed, 05/04/2011 - 19:02 | 1240953 spooz
spooz's picture

He's a Trumpster these days, still lookin at that birth certificate with his magnifying glass. Oh, wait, maybe its the college records now.

Wed, 05/04/2011 - 18:15 | 1240668 akak
akak's picture

Herr Oberstgruppenforumfuhrer Denninger is just a financial idiot savant ---- with emphasis on the "idiot".  His innumerable and historically ignorant tirades on the "threat of deflation" (and other unicorns), and his positively rabid, spittle-flecked disingenuous rants against gold that exceed even the worst anti-gold hypocrisy of Jon Nadler, are just some of the many proofs that his arrogant bluster hides an ignorant and insecure, pathetically intellectually weak little man.

Wed, 05/04/2011 - 18:32 | 1240782 Bananamerican
Bananamerican's picture

"CUT THE CRAP AKAK!!! BEFORE YOU GET ANALLY RAPED BY THE DOUCHINGER HORDE!"

both of them

Wed, 05/04/2011 - 18:37 | 1240815 akak
akak's picture

I simply had to post that, partly because I strongly suspect that Karl "MarketStalag" Denninger regularly reads these comments, if in fact does not actually take part in them ---- most likely as one of the ever-present, arrogant, disingenuous anti-PM trolls.

Wed, 05/04/2011 - 18:47 | 1240857 High Plains Drifter
High Plains Drifter's picture

yeh i think he uses the zh for market ticker subject prep too.

Wed, 05/04/2011 - 19:00 | 1240892 akak
akak's picture

Is his gulag of a forum still actually operating?

I actually used to daily read his MarketTicker blog, until his complete ignorance of monetary theory and history, his cluelessness on the value of holding gold and the precious metals in general, and his arrogant intolerance of ANY dissenting opinions in his mockery of a forum, made themselves fully evident to me.

Wed, 05/04/2011 - 19:12 | 1241003 spooz
spooz's picture

He is an expert on SOOOOOO many things, from nuclear safety to graphics to any and everything financial.  Latest is his definition of "natural born citizen".  He's a legal scholar now too.

Far be it from me to defend Obama.  He's a tool who promised everything and delivered nothing other than another round of kick the can. There is enough he is doing wrong without making stuff up.

 

Wed, 05/04/2011 - 19:04 | 1240965 spooz
spooz's picture

I see this all the time.  He comes out with a breaking story and when you look at the time its like 20 minutes behind ZH. Except for his birther stuff, he's way ahead of the curve there...

Wed, 05/04/2011 - 19:13 | 1241009 High Plains Drifter
High Plains Drifter's picture

its just like jim willie said one time. he never has had a original thought in his life....

Wed, 05/04/2011 - 22:59 | 1241842 trav7777
trav7777's picture

no, he said gold made a good doorstop.  Now that may be utterly stupid, but it IS original!

Thu, 05/05/2011 - 04:12 | 1242208 Stormdancer
Stormdancer's picture

No Trav, it really isn't.  I've heard that phrase from people who couldn't mount a coherent argument many times before I even knew who Denninger was.

Wed, 05/04/2011 - 19:29 | 1241107 acrabbe
acrabbe's picture

hear hear!

Wed, 05/04/2011 - 17:48 | 1240497 Global Hunter
Global Hunter's picture

If it moves up hike margins, if it moves down hike margins, if they release pics of bin Laden hike margins, if they don't hike margins.

A coin dealer here in Toronto seemed bemused I wanted some silver maples today.  Things economically have been decent here, my American friends should come up here to live.  Please bring your 2nd amendment rights with you when you come, I can't get any ammo up here.

Wed, 05/04/2011 - 17:47 | 1240521 mynhair
mynhair's picture

2nd Amendment.  Do I have to clear it with Queen Kate first?

Wed, 05/04/2011 - 17:52 | 1240551 Global Hunter
Global Hunter's picture

2nd is the right to bear arms one I hope.

Wed, 05/04/2011 - 17:58 | 1240572 mynhair
mynhair's picture

Yes. Sorry, a cigarette ash on the screen made your 2 look like a 5.

Wed, 05/04/2011 - 20:27 | 1241330 Global Hunter
Global Hunter's picture

crap, I had 5th and immediately edited I should have pointed that out. Really admire the US constitution and didn't want to disrespect it with my brain fade.  Like silver/gold I hope it comes back after being ignored for so long.

Wed, 05/04/2011 - 18:23 | 1240749 Abitdodgie
Abitdodgie's picture

I live in North Dakota Iwill ship it over for you.

Wed, 05/04/2011 - 17:45 | 1240500 Goldenballs
Goldenballs's picture

Quite simply if no one buys it because thats the only way the corrupt paper silver market can be saved from official public collapse will we end up with physical Silver at $500 per ounce and Silver paper at $0.00 per ream.Sure looks like it.

Wed, 05/04/2011 - 18:03 | 1240621 Timmay
Timmay's picture

Bingo man, that's the REAL decoupling....

Wed, 05/04/2011 - 18:43 | 1240843 Double down
Double down's picture

Entirely right.  It is the market place that fails not the monetary metal.  That obviousness begins to stand out.  Corrupt liquidity is worse than an illiquid market.  

Wed, 05/04/2011 - 17:46 | 1240502 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

What a criminal enterprize the U.S. has become, 100% corruption everywhere you look. 100% fascism. 100% stinking turd.

Markets act normal until the U.S. opens... then it's all criminal intervention for the rest of the day.

Turn to Russia today if you want to see what a free news media looks like.

Wed, 05/04/2011 - 17:53 | 1240557 Tracerfan
Tracerfan's picture

Russian media is much more informative than the media in the U.S.  It is for people with brains who are capable of independent thought, unlike the mind-mush zombies the U.S. has created through the Tube.

Wed, 05/04/2011 - 18:06 | 1240635 topcallingtroll
topcallingtroll's picture

Lmfao!

Russian media is now held up as honest!

They have their agenda. Be careful with their brand of kool-aid

Wed, 05/04/2011 - 18:12 | 1240680 Creed
Creed's picture

Lmfao!

Russian media is now held up as honest!

 

 

 

Al Jazeera too

 

seems like there's a whole crop of folks that forgot the history of the last 100 years

 

 

Wed, 05/04/2011 - 18:33 | 1240787 McPoopypants
McPoopypants's picture

+ Roubles

Thu, 05/05/2011 - 00:45 | 1242032 roninmd
roninmd's picture

Roubles Bitchez!

Wed, 05/04/2011 - 17:48 | 1240505 Gubbmint Cheese
Gubbmint Cheese's picture

keep pressing comex.. your end is coming

Wed, 05/04/2011 - 17:47 | 1240509 TruthInSunshine
TruthInSunshine's picture

Bart Chilton is my hero.

When are they going to raise the margins this many times on wheat, crude, corn, sugar, coffee or copper?

/sarc

 

Cash & Carry, bitchez! That'd be the ultimate solution to deal with punk ass bitches like Bernanke, Masters & Jameeey Dimon.

Wed, 05/04/2011 - 18:11 | 1240652 Franken_Stein
Franken_Stein's picture

Once the big boys on Wallstreet go down in a giant crash, the funk and stench of a thousand years will be released in the process.

 

All the concentrated tarry evil will flow out of it.

 

Reminds me of one of those "Star Trek TNG" episodes,

the one where Tasha Yar dies.

 

http://www.youtube.com/watch?v=wWlmVkcTVQE&feature=related

 

Wed, 05/04/2011 - 23:01 | 1241845 trav7777
trav7777's picture

that episode sucked.  Because they killed the chick with the big tits

Wed, 05/04/2011 - 18:22 | 1240725 buzzsaw99
buzzsaw99's picture

When are they going to raise the margins this many times on wheat, crude, corn, sugar, coffee or copper?

 

When JPM is caught short.

Wed, 05/04/2011 - 17:49 | 1240511 GFORCE
GFORCE's picture

Setting up for the largest weekly drop in silver EVER, which highlights further the herd piling in to the trade du jour on the way up. JPM loving it.

Wed, 05/04/2011 - 17:50 | 1240540 SilverRhino
SilverRhino's picture

Setting up for the largest weekly drop in silver EVER

That's fine by me ... I'm waiting for my back the truck up moment.  

Wed, 05/04/2011 - 17:46 | 1240513 Korrath
Korrath's picture

Noob question, so bare with me; don't the margin increases bite the shorts in the ass as well? 

Wed, 05/04/2011 - 17:57 | 1240590 Quintus
Quintus's picture

Yes, but they have a money pipe that runs directly from the basement printing room of the Mariner Eccles building straight into their trading accounts.

Wed, 05/04/2011 - 17:59 | 1240599 hambone
hambone's picture

JPM and it's ilk have no trouble coming up w/ more fiat @.025% for the raised margins...it's the physical silver they having a bit of difficulty with.  This is a huge win for the Morgue.

Wed, 05/04/2011 - 20:19 | 1241295 Imminent Crucible
Imminent Crucible's picture

Huge win for JPM? No, a reduced loss, for now.  It's Gresham's Law: Paper silver drives physical silver out of circulation.  The more they crush the paper price, the higher physical premiums get and the harder it is to find.

Silver eagles are back to $6 to $7 above spot, if you can get any.  JPM is burning the house down to keep from freezing to death.

Thu, 05/05/2011 - 01:19 | 1242081 hambone
hambone's picture

+

Point granted.

Wed, 05/04/2011 - 18:12 | 1240674 Long-John-Silver
Long-John-Silver's picture

1's and 0's in a binary file cost almost nothing to create. Even ink impregnated  linen cost's more.

Thu, 05/05/2011 - 04:22 | 1242216 Urban Redneck
Urban Redneck's picture

There aren't enough intaglio printers in the world to keep up with the digital bernankasarus, and if they even tried to create  FRNs to back QE, cotton futures would finally reach an all-time high.   

Wed, 05/04/2011 - 18:51 | 1240746 dogbreath
dogbreath's picture

if somebody went short at say 49 their account would be +++ 47500 (Si @39.50) clams so a margin call would not be triggered though the shorts as well as longs must maintain whatever the current margin is.  The longs depending on their entry point will be underwater to varying degrees.  If you were long at 38 you would still be up 7500 but the additional margin requirements might get you a margin call depending on how flush your account was to begin with.  Brokerage will sell your contracts at market if you don't come up with the dough quick. 

 

As optimistic as I was with Ag/Au making new highs,  this is the same modus operandii as every top/margin call squeeze since the bull was born.  Where the bottom is I don't know but would make a guess at below 30.  BTFD.  There will be summer doldrums and a period of consolidation.  

RobotTrader was right about saying they can throw tons of paper at the market to force it down.  As for the put buyers at 48-49,  i eat humble pie.  good call for a trader.

My experience is that when margins are increased, it is a foolproof sell indicator for the reason of the second example above.  Undermargined longs still get margin calls although their strike price is lower than the current one.

 

Jim Rogers has said several times that futures should be traded with 100% margin.  The current cascade is contract liquidations at market createing more volatility and insider selling into the crash,  raising margins and in this case for the forth time,  more liquidations..............wash rinse repeat.

 

I was cleaned out a while back.  The squid will destroy all the small specs and some of the larger ones before we hit bottom.

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