CME Margin Hike Is 4th AND 5th - Charting The Parabolic Rise In CME Silver Margin Hikes

Tyler Durden's picture

Remember when earlier we said the CME had hiked silver margins for the 4th time in 8 days? We lied. In fact, what the CME did was to hike margins for the 4th (effective May 5) AND 5th times (effective May 9). That's right, dear reader, in one release, the CME has performed two concurrent margin hikes, which means today's action is the 5th margin hike in 8 days, a previously unheard of event! As of May 9th, the initial margin is $21,600, or 11% of the contract value, while the maintenance is $16,000. This is nothing short of sheer panic at the CME. At this point we can only wonder if the FDR-style precious metals confiscation executive order will come by way of the CME or the FBI. And for everyone asking, below is the chart of recent CME margin hikes in silver.

Spot the parabola:

Oh, and another thing: today (or technically yesterday) there was another drop in COMEX registered silver, with 4,758 ounces of silver withdrawn from Brinks.

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Turd Ferguson's picture


Frankly its amazing that silver is only down 20%.

McPoopypants's picture

Funny how spot stayed stable today. Bottom?

Thomas's picture

Didn't respond cause the big guys got a tip before it happened.

Stormdancer's picture

Aaaand, it's gone.....

For posterity :):

by FunkyMonkeyBoy
on Wed, 05/04/2011 - 19:00


Your followers will be glad to hear those words i'm sure.

Sorry turd, i read all the self-gloating on the way up... but any credibility is shot to pieces in a few days as call after call goes amiss now. Anyone following you now is following a headless chicken. Anyone would have to be mad to press that 'feed the turd' donation button now.

BTW, i buy precious metals, but i don't get caught up in all this precious metals blog hype, sheep to the slaughter those things, seen it time and time again.

  • **JUNK** (52)
  • Stormdancer's picture

    LOL...riiiiiight :)

    You demand 100% accuracy from everyone but yourself.  Real honest.  When you put yourself out there and have the guts to take a stand as opposed to railing against those that have the courage and knowledge to do so...I'll consider "honest" in a different light with reference to you :)

    And now I go to work seeing if we can junk this post into oblivion as well :)....just for giggles.

    Ura Bonehead's picture

    Come on, Storm.  Don't you see the sign?  "Don't feed the Monkey!"

    Stormdancer's picture

    Of course you're right.  Sometimes boredom gets the best of me :)

    Michael's picture

    This is great. Silver will be the first commodity item in history not to have a gambling component factor influencing the price.

    We should do this with every commodity.

    Teamtc321's picture

    I don't recall you monkeyboy posting prior to margin hikes hitting, did you? If so I must have missed it, if you did, your a fucking prince.

    Goldman leaking it is hard to borrow silver and last thursday London floor close leak with CNBC on site saying silver was selling off was my clue.

    I sold my calls and bought more physical. Man monkey boy, wish we could have all seen it coming like you did.

    Pegasus Muse's picture

    I took advantage of JPM's Silver Sale today.  Bought more physical at 22% off. 

    Bet the Asians did too.  Did you?

    Ahmeexnal's picture

    Guess who's buying PMs with both hands while dumping greenbacks in the process?

    That might be the REAL reason the US has no currently defined ambassador in Mexico, and not the Wikileaks falseflag:

    savara's picture


    I went to one of the India's biggest bullion market and people buying physical silver like crazy. FYI Indian's don't buy Silver in ounces, they prefer in KG's    

    goldenbuddha454's picture

    As the article states, there's probably an executive order somewhere down the road to confiscate all gold and silver should our debt obligations become unmanageable.  Its been done before by FDR in 1933, google it.  I believe strongly in gold and silver in the physical form, but with this administration do you think they would hesitate to take what you have by executive order?  I don't.

    TwoShortPlanks's picture

    Hey, when you Homos have finished man-raping each other, I'd just like to point out that as of yesterday morning, the Perth Mint has only three 10oz Bars of Silver left.

    Hello, lot's happening people!

    donpaulo's picture

    homos and manraping aside

    I bought at spotmex today


    Kopfjager's picture

    Spotmex aside, there's a lot of homos and manraping here.  

    TwoShortPlanks's picture

    Spotmex, homos and manraping aside, can anyone remember what the hell are we discussing? Oh-yes, Silver...there's bugger all left dudes!

    angrybill's picture

    ....and as of today...


    No Oz coins...(well a few 2008 lunars but I can't be fcuked wasting the phone call))

    lawrence1's picture

    What a piece of shit you must be.

    JW n FL's picture

    Only $7.99 per coin over spot!
    Unopened "Mint Sealed" green monster box! No MS-70s have been graded at PCGS!! These Millenium boxes are tougher to locate.
    APMEX stands behind every product it sells with a satisfaction guarantee.


    $39 looks a lot like $47 for bulk pricing! and this is the low side the others are $30k(ish) a box.. which is $60 per oz / coin!



    tmosley's picture

    Hell, look at the 1oz bars.  $4 over spot.  Absolutely nuts.

    Hearst's picture

    On June 1, 1955 The Wall Street Journal reported that the US government had a “useless” stockpile of about 3 billion ounces of silver, and blasted the Treasury for paying the outrageous price of 90.41 cents for an ounce of silver.


    Great article if you haven't read it yet.  But doesn't that quote just pretty much sum up where we are at today?  Even back in the 50's when Silver was still legal tender and the US had 3 Billion ounces the propagandist MSM was badmouthing Silver.  Why?   Well one reason has to be because Silver is honest money and those greedy evil selfish cocksuckers at the top don't want that.  Why?  Because they want it all for themselves.  They have the sickness of utter greed and it is fatal.

    So there, 56 years later & 3 Billion ounces, gone!  I'm not old enough to have been around for the 80's turmoil so I can't speak with as much knowledge as some here.  But how can anyone view these actions as anything but unprecented and desperate on the part of the CME & bullion banks?

    Goldenhands57's picture

     Well.. not saying I know shit, cause I don't, and God knows I've had the crap stomped out of me in the Markets before like everyone who's been there any time at all..BUT.. the fact is I was there in the 80's and in physical metal (to the tune of about 40 pounds in 90% AG and around 5 lbs Gold..mostly in 18kt class rings I'd been buying since my late teens and early twenties..since 1975 when I graduated). The Hunt Brothers MAY have been immoral in what was SAID to be an act of trying to corner the Silver Market, but the Goovernment did a very illegal thing and pretty much destroyed the confidence in Free Market trading by barring them forever. BUSTED! They were pretty much fried at the stake. When Citi was on the ropes..and I mean..on the Friday they were down to LESS than $10 a share and looked to be definitly crashing in flames like Lehman and Bear Sterns had done, I entered in front month Put Options at a .60 Delta Strike to the tune of over $69K worth. Guess what? That bugprick Hank stepped in on Sunday and opened up the US Treasury (OUR Treasury...NOT his!) to all of the Mega Crooks including Citi (the Anti-Christ along with GS if there ever was one)..saying "too big to fail" in a flash on Monday that 69K Trade pretty much was zip.  Ok..yes,it sux bad..but that is part of the risk we deal with ('s not fair). My point is this younger guys. These bastards will do ANYTHING to keep this cluster THEY created and allowed to happen pushed down; and also want to make it look like YOUR the bad guys for "speculating". Don't be surprised to see when this latest attempt at crashing the AG Market fails they step in just like 1933 and pretty much put us all out on the street. They CAN do it..and all it takes is a signature from Bambi saying they can. What is going down now in Margins is like NOTHING I've ever seen, there is real fear out there by those that have the power to change the game in a flash. Be careful and a very watchful eye on what Congress did (and does) from here on...there is only ONE form of Physical Silver exempt from reporting (unlimited exemption too) beyond a sale ceiling. Why that one coin? You guys check it out and you'll see why the premium for those green Monsterboxes is worth the privacy.    

    Hearst's picture

    Thanks for your insight.  I have always felt that Silver Eagles (in America) cary a gravity of authentication that other buillion products lack.  Will the 1 oz SAE be destined to arise as the new Spanish Dollar of old? =  Time to start converting prices of goods into bits & ounces?




    swissbene's picture

    also burned heavily & repeatedly on short bank positions in the first crisis. usually sound bets -- just obvious & everyone else knew score.  too much bs to recount.  expensive/eventual lesson: do not trade in equities.  [although made exception for some sep 2011 spy puts]

    naive observation of pm markets from outside -- looks more crooked than stocks!  ie a handful know whats up, a handful can change the answer.  everyone else pays the machine and sometimes get lucky.  the info warfare/propaganda around silver in particular is remarkable.

    great to watch/learn.

    personally working on the lifestyle hedge: lower expectations now and discount future heavily.  ie no attachments b/c there are no rules.  i did buy some eagles just to see what all the excitement is about: admit they are therapeutic somehow.


    Snidley Whipsnae's picture

    GoldenHands... I appreciate your comments.

    Anyone that plays the bankers game will lose. A short read of the extreme measures that were taken by the then 'powers that be' is more than enough information to convince any logical person that the bankers have no intention of letting PMs become money in circulation again. Bankers will go to any lengths to prevent PMs from becoming money in circulation. 

    Buy physical PMs and place them in a location outside the jurisdiction of the bankers... and hope that the azzhat bankers crash and burn.

    Buying paper PMs is part of the bankers game and, in the long run, will be a loser for anyone that is not an insider. If you are holding a paper PM position that is subject to manipulation then you are playing in a crooked casino.

    A fair casino does not change the rules while the dice are in the air...  

    SRSrocco's picture


    If Tyler is correct in his assumption that the CME is in panic mode it must be due to the fact that Open Interest is not declining, but rather increasing:

    MAY 3 = 130,567

    MAY 4 = 131,907

    Looks like someone is coming in and buying more than overleveraged speculators are liquidating.

    Furthermore, the backwardation in silver has increased


    MAY 2011 = $39.383

    JUN 2011 = $39.387

    JUL 2011 = $39.388

    DEC 2011 = $39.396

    DEC 2012 = $39.040

    DEC 2013 = $38.651

    DEC 2014 = $38.331

    DEC 2015 = $38.071


    That's about $1.30 Backwardation going to the Dec 2015 contract.  Things are going to get a great deal more interesting if the open interest keeps rising as well as the backwardation.



    JW n FL's picture

    U.S. Silver Coins 1 oz. spot was $39.32 (same a closing, jinx) and I paid $45.82 an oz.! 16% disconnect or backwardation from paper to physical. find my post from earlier for the exacts.


    $5.50 for Certified Bank Check $6.50 for Cash per oz. for U.S. Silver from a Mint Authorized Dealer.

    Michael's picture

    This is great. Silver will be the first commodity item in history not to have a gambling component factor influencing the price.

    We should do this with every commodity.

    firefighter302's picture

    We've been here from $12 to $40.

    Where you been, you missed the triple-up?

    donpaulo's picture


    its a wonderful feeling to see a 20% drop and still be in black by a factor of 2 or 3

    Transformer's picture

    Soo, 100% accuracy is it.  That's the only thing that blows your dress up?

    Burnbright's picture

    What an ass, you can't predict 5 margin hikes. 

    Gold 36000's picture

    No but you could have predicted that everything possible would be done to prevent silver from breaking 50.  Now you know what will happen next time.  Be prepared.  I thought you already were prepared because I kept hearing this brave talk about how you expected the comex to raise margins.  Did they really catch you by surprise?  Was all that brave talk just a bunch of boys in their basements looking at their coin collections and dreaming of being the neauveau rich in a new world full of skittles and lollipops and free from the curses of fiat?  Dream on wankers.

    Gold 36000's picture

    Gold for President.  Burn everything down.

    Burnbright's picture

    Yeah only I knew we were getting a correction, it was being telegraphed from a mile away. 



    by Burnbright 
    on Fri, 04/15/2011 - 19:20


    Well most of the people on here are not traders Danger so to them the dips do not mean anything only the long term trend. Certianly people do not like to hear someone rain on their parade but as far as I am concerned you are correct, we should see a pull back before the all time High of the hunt brothers and silver will more than likely get smacked down to $40 but their is strong resistance in the $38-$42 range at that point, i would actually be surprised if it droped below $45 once it gets near $50. I think it is possible that it breaks $50 by June and trades in the high 40s to low 50s untill fall when it explodes again like it did last season.

    As far as a comex default is concerned I think that is what all the margin hikes are for, eventually however if they continue to margin hike they will drive speculators out of paper and into physical so they are really screwing themselves in that regard. 


    by Burnbright 
    on Wed, 05/04/2011 - 16:00


    I never gave you shit cause I thought shorting at around the Hunt brothers high was a good move. I expected resistance and reversal around 48 and thats what pretty much happened. Didn't think it would drop below 40, thought it would show strong resistance at 42. If I recall you called for a drop to 30-34 range, heck you might even be right in the long run, I think we will know for certain after this friday where its going to end up. But having said that I think we already touched the bottom on this pull back. 

    If I were you I wouldn't wait for anything under $38. We both have our positions though and calling it to $34 is a ballsy one so I will give probs to you if it turns out that way. My guess is you pulled that number from the stronger channel silver has traded for a while.

    We shall see.

    I haven't seen you call shit so stfu troll. 



    mogul rider's picture

    you are closer to the truth than you think. Like all good runs there are winners and losers. Many here saw their dicks grow inches with each 5 bucks rise.

    They all thought they had finally figured out the mantra of Precious.

    Little did they know that they fell to the oldest trick on the book

    The pump and dump.

    The banksters are now cleaning up the walkways with dead or dying leveraged to the nuts basement traders and hedge funds who would not listen to caution.

    They are cannon fodder. Teaches you dicks for not listening. Shut the fuck next time and listen to those people who have experience in the markets. There are many here who expressed caution and were junked.

    Learn from your mistake and pay attention next time.

    Yes there will be a next time. Unlike most of you some of us have been through this before. It is ugly to watch you die but necessary.

    Yes the bull is alive, but it will clean wipe out some of you. That the Darwinian reality. Some are more fit than others.







    maximin thrax's picture

    Since the Bull is alive, as you say, what do you consider today to be a really good buy-back-in price for silver?

    sscam2001's picture

    I would wait to see if we get below $35

    JW n FL's picture

    even if you see a paper price of $35, you still will pay in the $40's for real, in hand physical!


    if you want bars you can do better, getting closer to spot.

    Snidley Whipsnae's picture

    Fuck spot, fuck paper PMs, fuck the banksters that conned people into playing the margin/leverage paper PM game.

    Buy physical and hold... You will sleep better and not be on a fucking roller coaster continuously...

    Who thinks they can beat a casino that changes the rules while the dice are in the air? ... Only a damn fool!

    Robot Traders Mom's picture

    If anyone gives you a price, they are full of shit. Obviously, we all agree that this is a manipulated market. We never know how hard they are going to fight on any given day and what day this all will end.

    Everyday is a good day to buy silver. If you are ignorant enough to believe you can time the dips, you might as well go trade something a little more predictable like tech stocks...

    Founders Keeper's picture

    [Everyday is a good day to buy silver.]---Robot Traders Mom

    Good post, Mom. I agree.

    Get rid of your FRN "investments" as fast as you can. Store that garbage in something with intrinsic value. If next week silver spot is at $49 I say buy; if $55, buy; at $75 buy. Don't be the one left holding a bag of FRNs.

    Store it if you got it.


    whoflungdung's picture

    You're smack on the button there mom! Well said.

    Stuff the guy who junked you.

    Long-John-Silver's picture

    +1 and I demand an un-junk button.

    Pumpkin's picture

    $14 trillion in debt, printing like a MF'r, Fed only real buyer of debt, 43+ million on food stamps, states are broke and must balance, silver takes a dump and you say it is a pump and dump???  Your an idiot!!!  Designed and executed.  They have unlimited dollars, unlimited silver they ain't got.  Good luck with that dollar thing.

    What does it all mean's picture

    Wow, I was fighting the good fight by my self yesterday... all of a sudden, so many supported showed.   Interesting.

    mrgneiss's picture

    I love how all the trolls masquerading as helpful financial advisors are all over the sell signals the whole way up; but seem quite quiet on buy advice when we are oversold.  Balance = credibility