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CME Lowers Gold Margins, Hikes Corn, Hogs
Well, all that bitching at the Comex over PM manipulation has paid off. The Chicago exchange just lowered its initial and maintenance margins by 10% from $6,751 to $6,075 and $5,001 to $4,500 respectively. In addition to GC, the CME lowered MGC, CGT, QO and 8Q contracts. Yet while it also dropped a bunch of irrelevant petroproduct margins, the CME is now targeting the Corn and Hogs speculators, apparently doing China's job for it, by hiking margins by 50% for the same crop year in C and lean hogs LN all months by 66%. Other products that saw a margin hike were Wheat, Soybean, Lumber, Dry Whey and Live Cattle. But back to gold: is this the catalyst for the next big move up? We should know within a few days...
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title says it all
Can't hike forever, you'll surpass 100%. They have to occassionally lower margins so they can go on another margin raising spree later when price is rising uncontrollably.
Or perhaps they want to attract more investing in gold to move investment away from silver?
Or both.
I didn't know you could speculate in corn dogs.
corn gold dogs....
they would allow a ramp up.. with the market(s) crashing soon(ish).. so that when they pull the rug out from retails feet next time.. they may create larger panic than this go round.. is the goal.
Fail.
They keep pretending that this problem can be solved like in the 1980's.. it can Not! be solved with the same game(s).. which leads us to an eventual confiscation by the Federal Government.
Not trying to be alarmist here. But just listened to Jim Sinclair's latest (16 June) KWN interview. I've never heard him this worked up about the current state of financial affairs. He feels we could well be at the cliff's edge.
http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/6/16_Jim_Sinclair.html
Precisely - if it were about what i prefer, then they should hike ALL margins to lets say 50%, and then make that the minimum. This way, only something like a badass crash/surge could trigger margin hikes.
Rick Rule see's current gold prices as a floor due to scheduled mines coming into production being based on $1400 gold. Also see's Mexico and Indonesia ceasing to be oil exporters within 5 years.
http://goldandsilverlinings.com/?p=1261
Rick Rule see's current gold prices as a floor due to scheduled mines coming into production being based on $1400 gold. Also see's Mexico and Indonesia ceasing to be oil exporters within 5 years.
http://goldandsilverlinings.com/?p=1261
Not really. It's not the margin level that is important, it is the fact that it doesn't change every damn day. They need to manage their risk, but they need to do it in a way that makes sense, not by changing the rules every 24 hours for a week.
Full agreement.... which is the reason for my above post. Margins simply shouldn't change except of in highly unusual situations - and for this to work, margins need to be high enough to cover "almost everything" to begin with. Margins simply shouldn't go as low as they currently are.
Did they ever pull back on silver?
I don't know if they will. The inventory is dropping like a rock.
That's what happens when you put something on clearance sale.
Higher margins a'coming...
Anybody else read that headline as corn dogs?
For a second, I thought things were getting serious.
people would grab their "sticks" and head for the streets!!
Dam Weiner jokes....
dollar devalution shortly....gld had formed a pennant(for analyzing purposes only)...gold to the moon
I see more food price inflation on the way. This is a pre-emptive strike courtesy of drought and floods in all of the wrong places, (and the certainty of more QE in some shape or form).
"Paper food" ETFs might be for you (ticker symbols below):
DBA: several different food commodities
JJG: grains only
CORN: corn only
I believe all are unleveraged.
Let's see how long such benevolence and charity on the part of the CME lasts.
In the meantime, Greece is a true land mine but not an actual threat to the integrity of the Eurozone, according to Fitch (yes, the same Fitch that rubberstamped dumpster grade mortgages as prime&plus for Goldman & John Paulson), and assuming such rubbish had an ounce of integrity, there's no follow up mention of the monsters much larger than Greece still lurking underneath the bed (and fiscally just as FUBARED):
If Greece is all that, I can't wait till we get on with the remainders of the alphabet soups that is PIIGS+UK, and I'm sure that neither can you.
maybe the starting point for a continious controlled increase of gold price
Its the catalyst for the big move down when QE2 finishes in the end of june. COmex wants to make it easy for the little guy to short called with fewer margin requirements. SO beccause a leg down is coming for sure, they lowered the margins.
When the gold inevitably rises in autum they will increase the margins once again.
I heard that Paulson got on the blower today and told em he needs to find a home for his gold tonnage
Gold is the logical place for them to funnel inflation that will eventually raise the value of US gold reserves to a point where they will balance out the US debt. Eventually the Fed and the Treasury will figure that out. High gold prices = US solvency.
If the gold is still at Ft. Knox. There have been many articles about the fractional gold system. That gold may have been borrowed or pledged by TPTB.
only if you have gold
do you punk do you have gold
i mean the US govt, not you personaly
Yeah, punk, if US.gov will ever need gold they will
get it one way or the other. They can simply knock down
miners like they doing it lately, and buy few of them
for fraction of the cost and get Gold at production cost,
simple as that. Or confiscate it from ZH punks
for $20/oz (set and release price) :))) *LOL*
Yes, nationalizing the miners is something they will do and probably put a huge tax on precious metals sales and whatever other things demons "attempt" to do. But, their days are numbered. Just think Romania 1989!
Tuco Benedicto Pacifico Juan Maria Ramirez
Then it's off to the black markets.
No way they'll get much of the gold in private hands. FDR only got some 10% I read.
I also concur that the demons' days are numbered, but it might be messy along the way.
Actually, no. I don't think they have any. After seeing how willing they were to dump US paper on the market to save the banks, I have no doubt they were just as willing to dump gold to protect that idiotic carry trade that was going on.
which is why i encourage the gov to sell all its gold now! get that gold into the hands of the people!
Dr. No, I don't know if you met Goldfinger before his unfortunate exit from his jet, but in any case you should know that there is no gold in Ft. Knox. On June 23rd congressman Paul is going to have a committee meeting with some bureaucrats and push for a real audit of Fort Knox. Last audit of Ft. Knox was in 1953 by order of President Dwight D. Eisenhower. In 1974 six congressman and one U. S. Senator got did a PR walk through of Ft. Knox but that was it. (I wonder if that pool table is still in there, the one that flipped over and had a miniature model of the Ft. Knox grounds?) Anyway, there is no there, there except for those two one gram pamp suisse gold bars (one missing its assay card) that I have been telling people about.
Tuco Benedicto Pacifico Juan Maria Ramirez
this is absolutely not the plan...but I wish it was because I'd be rich, rich, rich richer than my wildest dreams!
rich? rich? so what? what good are riches when fukushima is fuking the people, the pacific, the marine life, the west coast, and more? what are riches, anyway?
riches are a healthy, happy family!
anything outside of a healthy, happy family.. that a man is lucky enough to enjoy are truly blessings of the Republican Party.
plus loving and being loved.
yeh but at least I'll be turning high class whores every night
Quinvarius may be on to something....
Shell Game
+ $1530 today on FOFOA
+ $55,000 in 2 - 3 years?
55K is a bunch of coconuts...
So I guess the plan is to lower margins on gold, sheep/retail wade/pile in - Greece defaults around 6/21, Banks bail/sell commodities to cover CDO collateral (over the course of 3 weeks), some money rushes to Amerika, stocks, dollar increase in value briefly - China buys all commodities at discount with Treasuries that briefly increase in value due to Fed capping price - and then it all falls apart around August when CONgress/SINate can't get together on the debt ceiling/budget. Everybody then moves to Australia/China/Canada.
99 bottles of beer on the wall, 99 bottles of beer...take one down, pass it around 98 bottles of beer on the wall. Rinse, Repeat.
Keep stacking the physical. Party is almost over.
Who knows but people tend to underestimate the power of central banks - even in this incredible f.... mess it's likely to kick the can down the road again for months... I rather tend to see hyperinflation accompanied with a hard landing.
its a lock
I agree with you both.
Protect yourselves with gold. The best wealth preserver in town.
If you see a grim future, get started ASAP on survival preparations as well.
Food & water, guns & ammo, meds & first aid kit, etc. A big job.
Read all about it at my blog. Send me a gmail and assure me you will behave and I will send the link (I ask this as I use my real name there).
It's so nice of them to put physical Silver on clearance sale, BTFD!
If I recall correctly ES margins were lowered at the end of May...
COMEX lower the gold margin is because of the competition from Hong Kong. Hong Kong market has less manipulation. Now Comex want to lure traders back.
HK margin requirements were always higher than those at the COMEX.
I'll hold my opinion on the "less manipulation". That would make sense, but we have yet to really see.
+1
Very good observation. A kind of pre-emptive move before HKG gets traction.
Good point user... anyone know when (if) they open a silver market?
the FED prefers to have a controlled increase rather than x -> e^x
I use finviz futures, dont know if any one else does, but it puts into perspective what is being shorted, and whats next in line to be shorted. Gartman last week or two called for near term pain in corn and wheat, and they went the other way.
Now they are getting shorted down. Sugar has been on a tear lately, and no mention anywhere.
looks like the PM's responded immediately. We are 100 points down, and those two have not moved.
All the info one needs right there.
Margin reductions help the shorters as well. So shouldn't have any effect overall.
???? yeah, just like the hikes on the silver margin had no overall effect in May.
I'm doing this radical thing now where I withhold judgement. This could mean a multiplicity of things. I await the move in price now it should come shortly.
or, JPM as per Dimon, went crying to Benny to make everyone go away and not bankrupt him by buying silver! bastard!
They cannot let gold rise to any appreciable amount until they wish to end the party. There's more thieving to be done, more police state control to be enacted.
btw: we are soon to experience a spike in the number of dead babies/fetuses on the US West Coast due to the "acceptable" levels of fallout from Fukushima. Bet you didn't know that the milk in Hawaii is unsafe to drink without boron additives.
Yawn!!!!
FOG don't those yawns toast your tonsils?
if they're going to establish position limits where one could short 5 times more than they can be long, lowering margins would seem to help one side 5 times more than the other.
raising margins didn't seem to dent the longs anyway
The CME is doing God's work.
I believe in GOD. Not the CME's worthless vault/margin holdings!
The CME / Republicans / Democrats / Bankers / Lobbyists (http://www.ehow.com/video_4973386_become-lobbyist.html) are ALL doing Gods Work Together!
Lobby Dollars Across America!
My niece is about to marry a lobbyist...
Is saving £675 per contract really going to significantly change anything?
If it makes wild speculators suddenly jump in, I'll be amazed. IF they do, they really deserve a roasting after what happened to Silver in the final days before the recent plunge.
You're trading pounds. Me to. Now I get the snarkyness.
stock going down, money looking for stabel investment. Gold and silver steady last days. Likely to go up but do not mind if it is steady and still most traffic in paper
Make that a lot less ££££ per contract. Meant to press $, but tired eyes didn't see clearly.
Bitching? Hardly... More like 3 words: Shanghai Gold Exchange. Actually, more like 1 word: Competition.
You also hit the nail on the head with:
It IS doing China's job for it...perhaps as a back scratch?
Silver has been in no man's land the past week. That's really odd, considering all the bad news and palpable fear now creeping into people's psyche.
When markets are static when they should be going up may tell you something about the near term future?
Tuco Benedicto Pacifico Juan Maria Ramirez
Some one put a fork in this assclown on Kudlows show!
No, no, no! Huge mistake!!!
You are falling for the scam. Wake up!
All this jiggering of margins, both up and down, is exclusively for the benefit of the predators-that-be and predator-class at JPM and elsewhere.
THEY KNOW what these moves do for prices, and they take advantage in both directions to fleece everyone else who finds out later what changes are being made - in both directions.
So the predators will clean up now AND they will clean up again and again and again and again every time the margins are changed.
NO MORE.
The formula that triggers ALL of these changes must be known by EVERYONE in advance. And frankly, the margin should never be changed on a contract after it has been made - that is tantamount to arbitrarily changing contracts after the fact, which is FRAUD.
100% correct
I wonder if the boyz ask their budz at the CME to raise a margin to suck in some weak longs (trend following hot money) and then pull the plug with a volley of naked shorts and fleece them? Surely it can't be this simple (and illegal)?
Surely it can be this simple and surely it is. You did mean lower margins, didn't you?
on Thu, 06/16/2011 - 19:31
#1376160
are you insinuating that the System is Rigged? Those that knew ahead of time that the Margin's were to be raised could have benefited?
I am shocked an appalled that you would lead these nice people to believe such outlandish facts! How dare you Sir! how dare you? educate the masses for their benefit!
A pox upon the house of ALL Bankers!
Doomsters, that's how you count "Inflation adjusted".
Mining Gold/Silver (whatever) already has all components
of inflation priced in (fuel costs, machinery usage,
salaries and so on) Based on that price of production
already rose to let's say in the range of $600 to $1200/oz
(for example price of Gold)
depends how profitable business it is.. Now averaging this
we got about $800/oz to produce 1 oz of GOLD, even
placing some very optimistic profit Margin on top of that
let's say 30-50% we got around $1100/oz price.. That's
under normal conditions. Yes, we all know,
that right now is
something extraordinary (speculative) moment so profit
margins can be as high as 70-100%.. But again Inflation
already baked in the production costs..
Yes, I'm bullish on Gold and Yes. I do have Gold and even
more Silver,
but you have to be realistic as well.. Cause, if 100%
profit Margins will sustain for even longer then perhaps
General Motors or General Electric can also dump their
business and start mining.. I know, you are blind bulls,
(and I'm one too) but let's think about it in terms of
a biz.. Nothing can sustain 100% profit margin as
biz model.
I can f*king guarantee you that for certain..
It takes years to find an economic resource and bring it to production. Production has been declining, in spite of increasing prices and margins, for years now.
yes, agreed.. That's why premiums can be very high..
Did you notice how they manipulate PM stocks down?
I mean, many of them been just cut in half, while
metal prices stays pretty much flat..
That's
all I have in the stock Market.. Energy MLP's and
PM stocks and only one Tech company..
Tomorrow should be interesting, Stocks should fly allover
the screen during June Option Expiration day..
Enjoy the show ;)
The cost of production is meaningless.
The price of anything will rise until either demand is crushed or supply is increased, period.
Gold has risen from $250 to $1500 and production has barely changed. Meanwhile, demand is increasing.
http://www.chinamining.org/News/2011-05-23/1306113993d45685.html
From the link above:
"Why are the Chinese authorities doing this? It is quite painfully obvious. This is a hedge against a weakening US dollar and inflation. Gold is the real money, not the paper that China is forced to buy to support its export sector."
Gold prices have been too steady while the markets have been plunging. Time to let more specs in only to scare them out when Gold starts moving up again. I think their strategy is to make PM prices look volatile and unattractive to hedge/pension funds—once large funds start getting in on Gold and Silver, it’ll go parabolic.
has to be it...
I'm calling Gold about 1560, Silver 39.50...
then boooooom
Gold 1440, Silver 27
Then QE3 put into place (underwhatever name)
Gold 1700 Silver 50
Can anyone advise me, please, on buying silver coins/rounds?
Lowest buyback % under delivered price?
Lowest markup over spot?
These guys the best on entire market (IMHO)
Used them many times:
http://www.tulving.com/
For over two years I have been reading Zero Hedge, and Tulving always has lots of compliments.
High minimums though will deter those with less than, say, $20,000 to spend.
Be YOUR own lobyist! YEN CRoss.
You will have to do some shopping online. APMEX has been having some "flash sales" 24 hours each at very good premiums over spot ask. Today's ended with 99 cents over for any quantity of APMEX 1 ounce rounds.
You can buy private mint rounds like APMEX, sunshine, silvertowne, amark etc. or you can pay significantly higher premiums for products from government mints like silver american eagles, silver maple leafs, silver brittanias, silver pandas, silver lunar coins etc.
If you are starting out I would recommend shopping around online and go with an online company that has been around for a while. Pay the least premium (sales price - spot ask) for whatever you buy and diversify. Also, when you pick a vendor start small and once more comfortable you can make larger orders. Given that margins have been reduced is indicative of me that we will have good buying opportunities between now and the end of August.
Hope this helps. You are smart for getting some of your assets out of le papier de toilette. Good luck.
I like silver mexican libertads but I am biased:) Tuco Benedicto Pacifico Juan Maria Ramirez
1oz Canadian Timber Wolf Coins are the best to buy right now. These coins are going to havea huge future premium because The Royal Canadian Mint issued a low mintage on them.
Dude, you don't have to shop, I'm telling you
nobody better than Tulving. huge inventory, smaller
premium over spot. Check the site first before you
post alternatives like Ampex.. And let me know..
I vote Tulving, get those Aryan junk dimes baby, he was selling them at spot last I saw. Apmex is good for smaller amounts.
Nice toys :
http://www.tulving.com/bullion/gold_bar_pamp_suisse_10oz.htm
;)
I remember just a couple of years ago I was trading corn contracts with margins of only about $800 or so.
The margin hike hasn't impacted the price of corn much. It's flat tonight. If the intent was to force some specs out of the market, it hasn't worked. Corn has been trending lower over the past week, but is still nearly twice the price of one year ago, despite that prices tend to be LOWEST at this time of year before late summer/early fall weather events negatively impact the crops. That said, the wet spring caused planting to be late, increasing the likelihood that an early or cold fall will adversely affect the size of the crop.
Best to be prepared regardless. US corn stocks are at the lowest in 15 years. "We are one bad weather event from a food crisis," according to a grain trader friend at the Chicago Merc.
This is just another attempt by government to articifically suppress food prices. It never works, in part because when prices are artificially suppressed while demand remains the same, the result is that food PRODUCERS, like farmers and large companies, simply cut BACK on production because it is less profitable to produce the product at all. Thus, these attempts to control prices/inflation cause HIGHER prices in the medium to long term. These central planners NEVER learn the lesson that their meddling is destructive and counterproductive. It literally backfires every time!
Another unwanted side effect is that by shrinking the available liquidity pool, it impowers large "blue whale" investors to more easily manipulate the market. Would you rather swim with a blue whale in the ocean or the local fish pond? But the blue whales like smaller markets because it is easier for them to manipulate prices in that environment. The greatest antidote for price manipulation is a large liquidity pool.
Prepare for HIGHER prices of corn and other food commodities as a result!
TPTB are out of bullets, as are the TBTF. Short peckers.
as with your veggies, fruit, and meat, buy PMs locally from someone you trust. pay cash.
YES!
+ $1530
I have bought only once on-line (10 oz of hard to find platinum), but every other PM coin I have bought from local coin dealers. Pay cash.
Some day you may be really glad to know your local coin proprietor(s).
How the hell do you raise margins on Rosie O'Donnell?
Better, new and improved ADA crap?
I know I have to make my bones on this board, so I am telling you right now, regardless of how high corn based futures and commodities go, the US will have a bumper crop, the floods are on the fringes and the extra water is a plus. With respect to the US, the corn crop will be bumper. Trade at will.