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CME Margin Hike Is 4th AND 5th - Charting The Parabolic Rise In CME Silver Margin Hikes
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thing: today (or technically yesterday) there was another drop in COMEX registered silver, with 4,758 ounces of silver withdrawn from Brinks.
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Something is bothering me about this margin hike nonsense and the price of silver...just how much of an effect, or, I guess, what percent of the market price of silver is derived from levered futures contracts? And what is the 'spot' price, the Kitco quote? Where is that derived from, an actual buy/sell physical market? I doubt that anyone who owns physical sold enough to cause this correction. And if the CME and it's leveraged products has that much influence on world prices, what is the real price of anything traded in their market? Shit, if they want to move a price one way or the other...JUST CHANGE THE MARGIN REQUIREMENTS! If that isn't frontrunning, collusion, fraud, manipulation, whatever...I don't know what is. Combine that with the power the Fed has over margined securities accounts and the ponzi picture becomes much, much clearer..and ripe for an eventual crash.
Picked up more gold miners today and a little more gold. If we dump tomorrow will pick up a little more. If we dump.....well, you get the picture. I do not care what happens this month or next. Sure it is nice to be green but red is just part of the game and the last few days have been down days for me. So what. I never use margin, deal in quality both large and small and, well lets just say the last few years have been kind to me. We here know what is coming down. And my safe looks great.
And let those who think we are idiots post. As long as there are those who think all that glitters is heading much lower, that makes me feel good. Lots of ignorant people out there.
When there is a gold machine in every Starbucks, holler at me. Than I might sell my gold. It is good all. It is good. We have worked hard for our dollars and to see the likes of Geithner, The Bernank and the whores of wall street try and take away their value, we fight back.
Let the brillant ones ramble on and advise what they think is going to happen. They will soon know, what we know. But I am the first to admit the Dark side worked well the last week. I just wish they were not such ignorant morons foaming at the mouth and had some class and a small amount of respect for others. Oh well.
Welcome to the manipulated version of free trade.
Math Man is a pathetic creature.
Tyler, where is the god damn ignore button. I cannot find it!!! :)
I be sitting back, physical locked away, watching the carnage unfold. I expect I'll be buying more gold and silver fairly soon, but I don't feel rushed about it. I don't feel the need to be in the battle, I'll wait until the weak hands are slaughtered, then I'll claim some of the booty.
While everyone is looking at Obama does Osama jibberish, the Comex is running out of silver and the dollar t'aint getting any stronger. So I'm figuring something must be going on that all this noise is distracting us from.
Dear Crimex,
http://www.youtube.com/watch?v=CQfBGrfIaMc
Sincerely,
Physical
When you're beating the **** out of somebody...that was intending to do the same to you...you would be unwise to take a break from smashing them...and allow them the chance to recover and get back up and get back into the fight.
The small speculators had the "Shorts" on the ropes in the March delivery month....however, the "Shorts" finally cleared them out with only one day to spare in the allotted 30 days timeframe from 1st day notice. I think their failure (Longs) resulted from too many contracts (from the original 4k+) clearing out too soon in the month and not letting the price rise a bit more and the shorts a chance to "sweat" their situation. Their battle plans were a bit flawed....and now, the shorts have figured a way to test how fat their wallets are with fiat. It would only take a "turn-coat/traitor" or two...within the ranks of the small speculators (longs) to feed needful info to the Shorts as to how many plan to stand together and stand firm for delivery.
Their pockets seem to be not deep enough to accomplish anything besides a good bashing into the later rounds of the fight. It will continue...but if they don't deliver the knockout punch in the primary month of July...they'll most likely have to fall back and regroup for a better tactical assault at December.
As much as people wanna think there's a disconnect happening in the paper and physical...I think they're still tethered at this point...and the paper traders are still in the driver's seat. The common serf has not removed enough product from the system to enable the small speculators (Longs) with the necessary ammo to unleash the "killing blow". I'm a perma bull...and a cannonballer...but I'm also a realist...and the American landscape still appears asleep and apathetic to this cause to destroy the fraudulent price discovery mechanism on the Comex. There's enough people out there to make a difference...but the hard times have not been severe enough to snap them outta their slumber....they require a Black Swan with some serious "Shock Value". It may come sooner or later...but which one is anyone's guess.
I actually think it's better this way....the "Have Nots" are always encouraged in our society to foster hatred and angst for the "Haves"....and at 1% exposure to PM's....the "Haves" are grossly outnumbered and well within the minority. Our sleepy brethren could use a bit more time to come around and gather unto themselves a bit more of the cheap "precious". I don't hope for an ugly and financially destitute landscape in the world of us commoners should things start to unravel and times turn truly dark. At present....most are "voting" their normalcy bias and letting their chips ride in their 401k's and Pensions as well as other trading accounts at the bigger casino halls...they are assuming the gubmint's politicos and the central banking shylocks will fix things and they can get back to their daily Starbucks lattes and white picket fence "house flipping" dreamworlds.
A bit more time will no doubt bring us the tale.
yes, the elites foster hatred (even indirectly, eg first IGNORING Afghanistan after "our Mujahadeen allies" ousted the Red army... then doing a 180 & whipping up the ham-fisted cheney-rumsfeld-wolfowitz occupation of Afghanistan), and we HOPE it doesn't lead to a twisted, blackend, wasteland landscape here in America (you know - like anything within 50 miles of Fukushima).
the regulators & politicos WERE (literally!) IN BED with the big businessmen (doing drugs & sleeping with oil & mining execs in that Dept. of Interior scandal in last year(s) of Bushco, much less w/ big finance ceo's) before candidate o promised us "change" - but the only real "change" since then, is the shylocks have moved directly in to the white house!
Well said
+plus'...all around
never forget those getting by by other means.
the bottom doesn't have 401k's, they have drug money and welfare, things can escalate faster than the "economists" may like, when there are already plentiful black markets...
If the landscape gets ugly enough...and the puppet masters think they will lose control...they will search out more onerous ways to remove the lynch-pin (PM's) from the equation and try to keep it out of reach of the serfs.
Then...you'll have a black market for sure
The only way to beat the predators-that-be and predator-class (JPM, GoldmanShafts, government, etc) is to sell all our paper assets and invest everything we have in physical silver and gold (and guns, ammo, survival goods and equipment and supplies to produce basic goods).
There is no way to beat predators who can create unlimted fiat, fake, fraud, fiction, fantasy, fractional-reserve debt-based funny money... and apply that to manipulation of just about everyone and every thing.
The one thing they can't do is increase the supply of physical silver and gold [very much or very fast]... so that's the way to defend ourselves and stick it up theirs.
SLV + GLD ETF's exposed on CNBC! wtf!
http://www.youtube.com/watch?v=Gm72UYgEarw&feature=player_embedded
Next time read the fine print carefully. If you're sitting on SLV, you signed: "YES, PLEASE" to being tied up, gagged, robbed, groped, shot and thrown into the river by JPM & Friends. I'm guessing you're not Michael Phelps. Harry Houdini and ObL are dead, the latter was killed TWICE.
In my estimation the plunge in silver has more to do with the SLV than anything else. As stated in your linked video the volume was around 30-40 million shares and from mid April on it quadrupled or quintupled. Somebody was shitting their pants and it's not the PM bulls.
"Mexico, Russia and Thailand added gold now valued at about $6 billion to their reserves in February and March as prices advanced to a record, the dollar weakened and Treasuries lost investors money."
http://www.bloomberg.com/news/2011-05-05/central-banks-expand-gold-reser...
Gracias, Spasibo, Kob kun ka
Silver and gold are money, everything else is credit
You're welcome. And if it's a consolation to anyone, not that they need it, the last time it was reported that CBs were buying was India at around $1035. The price never crossed under that again.
From the article:
"“Central banks have good reason to buy gold,” said Peter Morici, a professor of business at the University of Maryland in College Park and a former economic adviser to the U.S. government. “The dollar is no longer a safe asset for backing currencies. Treasuries are not a sound investment” and budget and debt issues mean central banks should buy gold, he said."
Soros and Buffett are cornering silver market?
A gobal liquidity withdraws to bring down all markets? Big guys must buy everything cheap right now. So when QE3 announces, they can sell back to whom they bought from.
Can we change Nobel Peace Prize to Nobel bombing award or Nobel military achievement award?
I think this pretty much sums it up for most of us:
http://www.youtube.com/watch?v=sDSud7vAH_0
feck, feck me, feckin' eh
For what its worth, I guess the chopper SEAL 6 just blew up was chock full of infrared blocking silver.
Bob Chapman interview —4 May 2011
http://www.youtube.com/watch?v=_OLWdh2SwOw&feature=player_embedded
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.
http://www.apmex.com/Product/59386/2000_Silver_American_Eagle_500_Coin_Monster_Box_Sealed.aspx
$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!
Backwardation? FUCKING DISONNECT BITCHEZ!!!
Yup. Just more evidence that...
There are no markets, only manipulations.
The predators-that-be will not stop manipulating the paper markets... all paper markets. Well, the appropriate answer to their overt criminal smashdowns of silver is...
Exit all paper assets, and convert all revenue into physical silver and gold. Do that and they'll never pull these BS games again, as they want as much in paper markets as possible, and as little in physical markets as possible.
STICK IT TO THEM.
With silver at $39, this is the perfect time.
STICK IT TO THEM.
Too much to read, sorry. There seems to be way to much emotional attachment going on with this white PM anymore. Maybe a 'yea sure', but my position...
I took delivery in 2001 and buried all but one bar. I sold that bar just before Easter, seems Kitco was fine to take it. I didn't know if silver would correct after the futures expired or blow though $50, so I did a little due D and set myself up with a reasonable spread on SLV, I pulled the trigger on the puts this morning and made my sell almost close to the top on the physical. I've still got the calls, almost worthless, but we just may get a bounce off $39, and if it looks like a second test of recent highs, well...
Thing is, I've waited 10 years just to sell a piece of my action on silver and only because I think it well spent. ( We are selling this property and moving to be among our kids. ) Family, community, and doing stuff is way more important than 'money'. You can't take it with you. I think of silver as just money, a tool to produce and live. I'll keep spending it. My son wants to play the next bubble as a producer in cleantech. What more fun can an old boomer have? And so what if it doesn't become all that it can be, I'm going to die anyway.
Yea sure, if you have gold you won't starve. But if you have pom poms out for the end of the world I would think that having a solid community around you is way more important than this myopic silver is up, down, trouncing troll stuff. Because if someone thinks that keeping their gold and silver in isolation, shooting anything that moves, is a way of life...
I don't know, just some of what I think.
Best, Dan.
Why are margin hikes such a big deal?
Would you agree that one should post collateral when borrowing money to purchase an asset? Would you agree that the amount of should be a function of the riskiness of the loan?
Therefore, would you agree that as that price of silver goes up the absolute number of dollars to post as collateral would naturally also go up? And if the riskiness of that asset increases (for instance, increased volatility) would you agree that additional capital should also be posted?
Sheesh, Stockholm Syndrome strikes again.
Look at the graph. Look how often they're changing the rules in the middle of the game.
People make investing decisions based upon the rules and reality at the time they invest. Therefore, ethically speaking, margins should either be changed only for newly created futures or options or whatever... OR... when the margins change should be specified in advance by a simple rule that everyone knows in advance. For example, an lower and upper leverage (say 30x and 40x) could be specified, plus how much the margin changes when those limits are hit (say minus or plus 5% margin when hit). Then everyone knows when they buy the investment exactly what are the rules.
As it is now, the scumbag "regulators" work for the predators-that-be (JPM and government) and everything they do is done to serve the interests of the gangster banksters and politicians.
That's what's wrong. It isn't that margin changes can't be made, it is that they can only be ethically made when the rules of those changes are known when the investments are made. People can and often are financially ruined when rules are changed in the middle of the game, especially when made on an arbitrary or predator-serving basis.
Recent new gold highs in CAD, GBP & YEN. Just off highs in USD (inc. CNY) and EUR.
This is but a temporary (and necessary) correction.
I've taken a 2x leveraged position in Ag which coincides with strong ^HUI support at 544.
Ag and Au will find and re-test their bottoms here before a strong correction rally.
(and after last night's curry, I'm off to re-test my bottom!)
I expect further weakness today and friday but this will be completed by early next week.
Now is the time to buy into positions.
Found a good article about the Silver take down on recent email from Provident Metals.
http://www.numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=19596&et_mid=426531&rid=2211723&utm_source=Provident+Metals+Newsletter&utm_campaign=eabc01f762-Newsletter_May_2011&utm_medium=email&mc_cid=eabc01f762&mc_eid=776eb5b2f3
So it is really buy silver and crash the LBMA. Love to see those pricks take a thrashing - how many times do we got to blow up the LBMA before they end their corruption?
SO the message really is - buy physical silver and leave the LBMA, JPM, CFTC and TPTB to eat shit sandwiches for evermore.
Hmmm the blatant corruption continues.
All I can say is that JPM must be very close to being destroyed by PMs otherwise you wouldn't make such insanely obvious corruption of the market.
The CFTC has to play along of course since they allowed the situation to develop (with Bear Sterns) over many years and would be made to answer if JPM fell over because they allowed them to get away with naked short selling to an extreme degree.
Personally I would be more interested in members of the CFTC being bought to justice rather than anybody in JPM and form BS - as you can only expect law breaking if the police are systemically corrupt.
If things really do blow up in a spectacular way you can bet members of CFTC will be made the scapegoats and mercilessly attacked. Banksters are protected species, no amount of corruption will be punished.
Personally I would love for the FBI to go through the CFTC like a dose of salts and put a few in anus pounding prison.
look at this. another silver post hitting 3 pages.. thats why there is a waterfall, sheeple is getting slaughtered..
thats beacuse of the blog sheeples like turd and co's who blindfoldedly analyzed the parabolic spiking market with 15 minute charts and cheerleadering other sheeple to pile in (anyone who objectively looked at a weekly chart with RSI would have seen this bloodbath coming last week). these are also the same guys who called comex "the crimex" and dont have any trust in its paper market but on the other hand playing with its futures and options and posting these trades on their blog.
Not a particularly fair comment and fairly intellectually dishonest.
Nobody at all could have predicted the insane degree of coordinated corruption that TPTB would take in order to trash silver. If anybody says that they could have predicted this I would call them a liar, unless they happen to work for JPM, LBMA or CFTC.
A normal run of the mill JPM take down as evidenced many times in the past would have had a small and temporary effect on silver and gold, the fundamentals of the econonomy not being any better and QEn always the more likely future.
So people (or the sheeple as you arrogantly call them) including TF were well aware that JPM and others were beating down silver on a regular basis, but it never had a lasting effect, the market forces being stronger.
And naked short selling massive quantities of silver doesn't mean that will be the price of physical. They are all hoping that not too many stand for delivery and those that do may have to accept a massive premium to walk away. In which case the price of silver is in fact Spot plus the premium JPM pay to walk away - in other words the price of physical silver is probably still around $50.
Everybody should stand for delivery - you will get a wonderful premium OR if they have to go out and get you the real stuff they will force up Spot in doing so - in both cases you win.
Weekly chart warned what was ahead.
April 28:
http://stockmarket618.wordpress.com/2011/04/27/thurs-april-28
Charts are meaningless when it is concentrated high level corruption that is at work. The market becomes what every they say it will be.
Was the maintenance margin really -35% back in April 2010 ?
The right hand y-axis of this chart is all screwed up.
How is it possible for JPM to have zero ounces of silver registered and to be one of the largest underwriters of silver derivatives. Too me looks like they have dibs on infinite leverage.
Paper silver to zero.
Long 24 digit calculators and wheelbarrows.