CME Lowers Gold Margins, Hikes Corn, Hogs

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Thu, 06/16/2011 - 17:40 | 1375924 DNB-sore
DNB-sore's picture

title says it all

Thu, 06/16/2011 - 18:10 | 1375974 Vagabond
Vagabond's picture

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.

Thu, 06/16/2011 - 19:29 | 1376155 gmrpeabody
gmrpeabody's picture

I didn't know you could speculate in corn dogs.

Thu, 06/16/2011 - 20:59 | 1376317 mynhair
mynhair's picture

corn gold dogs....

Thu, 06/16/2011 - 19:32 | 1376161 JW n FL
JW n FL's picture

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.



Thu, 06/16/2011 - 19:40 | 1376168 JW n FL
JW n FL's picture

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.

Thu, 06/16/2011 - 20:16 | 1376246 Pegasus Muse
Pegasus Muse's picture

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. 

Thu, 06/16/2011 - 20:34 | 1376290 Rynak
Rynak's picture

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.

Fri, 06/17/2011 - 00:22 | 1376699 tiger7905
tiger7905's picture

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.

Fri, 06/17/2011 - 00:25 | 1376700 tiger7905
tiger7905's picture

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.

Thu, 06/16/2011 - 17:41 | 1375928 tmosley
tmosley's picture

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.

Thu, 06/16/2011 - 20:41 | 1376295 Rynak
Rynak's picture

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.

Thu, 06/16/2011 - 17:46 | 1375931 TheGoodDoctor
TheGoodDoctor's picture

Did they ever pull back on silver?

Thu, 06/16/2011 - 17:48 | 1375938 LongBalls
LongBalls's picture

I don't know if they will. The inventory is dropping like a rock.

Thu, 06/16/2011 - 17:57 | 1375952 Long-John-Silver
Long-John-Silver's picture

That's what happens when you put something on clearance sale.

Thu, 06/16/2011 - 21:00 | 1376320 mynhair
mynhair's picture

Higher margins a'coming...

Thu, 06/16/2011 - 17:50 | 1375941 NotApplicable
NotApplicable's picture

Anybody else read that headline as corn dogs?

For a second, I thought things were getting serious.

Thu, 06/16/2011 - 18:06 | 1375968 Dr. No
Dr. No's picture

people would grab their "sticks" and head for the streets!!

Thu, 06/16/2011 - 21:01 | 1376322 mynhair
mynhair's picture

Dam Weiner jokes....

Thu, 06/16/2011 - 17:47 | 1375942 I think I need ...
I think I need to buy a gun's picture

dollar devalution shortly....gld had formed a pennant(for analyzing purposes only) to the moon

Thu, 06/16/2011 - 17:53 | 1375944 gnomon
gnomon's picture

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).

Thu, 06/16/2011 - 22:32 | 1376486 DoChenRollingBearing
DoChenRollingBearing's picture

"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.

Thu, 06/16/2011 - 17:59 | 1375945 TruthInSunshine
TruthInSunshine's picture

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.

Thu, 06/16/2011 - 18:18 | 1375946 swissinv
swissinv's picture

maybe the starting point for a continious controlled increase of gold price

Thu, 06/16/2011 - 17:55 | 1375948 unky
unky's picture

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.

Thu, 06/16/2011 - 17:59 | 1375962 onarga74
onarga74's picture

I heard that Paulson got on the blower today and told em he needs to find a home for his gold tonnage

Thu, 06/16/2011 - 17:51 | 1375949 Quinvarius
Quinvarius's picture

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.

Thu, 06/16/2011 - 17:57 | 1375953 ReallySparky
ReallySparky's picture

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.

Thu, 06/16/2011 - 17:57 | 1375960 richard in norway
richard in norway's picture

only if you have gold


do you punk do you have gold


i mean the US govt, not you personaly

Thu, 06/16/2011 - 18:30 | 1376015 Greeny
Greeny's picture

Yeah, punk, if 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*

Thu, 06/16/2011 - 20:32 | 1376277 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

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

Thu, 06/16/2011 - 22:36 | 1376496 DoChenRollingBearing
DoChenRollingBearing's picture

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.

Thu, 06/16/2011 - 18:45 | 1376058 Quinvarius
Quinvarius's picture

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.

Thu, 06/16/2011 - 18:07 | 1375969 Dr. No
Dr. No's picture

which is why i encourage the gov to sell all its gold now!  get that gold into the hands of the people!

Thu, 06/16/2011 - 20:25 | 1376272 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

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

Thu, 06/16/2011 - 18:42 | 1376046 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

this is absolutely not the plan...but I wish it was because I'd be rich, rich, rich richer than my wildest dreams!

Thu, 06/16/2011 - 20:11 | 1376236 gall batter
gall batter's picture

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?  

Thu, 06/16/2011 - 20:22 | 1376263 JW n FL
JW n FL's picture

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.

Thu, 06/16/2011 - 20:30 | 1376285 gall batter
gall batter's picture

plus loving and being loved.

Thu, 06/16/2011 - 20:29 | 1376282 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

yeh but at least I'll be turning high class whores every night

Thu, 06/16/2011 - 19:08 | 1376111 Shell Game
Shell Game's picture

Quinvarius may be on to something....


Thu, 06/16/2011 - 22:39 | 1376506 DoChenRollingBearing
DoChenRollingBearing's picture

Shell Game

+ $1530 today on FOFOA

+ $55,000 in 2 - 3 years?

Fri, 06/17/2011 - 00:41 | 1376719 Dagny Taggart
Dagny Taggart's picture

55K is a bunch of coconuts...

Thu, 06/16/2011 - 17:52 | 1375950 ReallySparky
ReallySparky's picture

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.

Thu, 06/16/2011 - 18:00 | 1375967 swissinv
swissinv's picture

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.

Thu, 06/16/2011 - 19:05 | 1376108 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

its a lock

Thu, 06/16/2011 - 22:42 | 1376519 DoChenRollingBearing
DoChenRollingBearing's picture

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).

Thu, 06/16/2011 - 17:57 | 1375961 Long-John-Silver
Long-John-Silver's picture

Keep stacking the physical.  Party is almost over.

It's so nice of them to put physical Silver on clearance sale, BTFD!

Thu, 06/16/2011 - 18:00 | 1375966 rayban
rayban's picture

If I recall correctly ES margins were lowered at the end of May...

Thu, 06/16/2011 - 18:09 | 1375973 user2011
user2011's picture

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.

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