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Despite Preemptive Gold Margin Hike In Shanghai, Gold Is Poised To Close May Near Record On Sovereign Risk Worries

Tyler Durden's picture





 

After a near epic margin driven collapse in silver, which appears to have been largely forgotten as the metal has resumed it upward climb, it is gold which has once again regained the crown in the fiat substitute race. As Reuters reports: "The speculators are coming back, mainly driven by the European debt crisis," said a Singapore-based trader. "Gold is likely to slowly move up during the summer unless we see big headlines, such as the U.S. raising interest rates earlier than expected." Of course, where some see "speculators" others see rational investors who are already discounting the inevitable next step by the central planner cartel, which forced to deal with a slowing economy will have no choice but to inflate the global adjusted monetary base (and dilute outstanding fiat) by another several hundred billion. Elsewhere, in preparation for another gold breakout, the Shanghai Gold Exchange hiked gold and silver margins once again, this time preemptively. "The Shanghai Gold Exchange said
on Monday it will raise margin requirements on gold forward
contracts to 12 percent from 10 percent from the June 2
settlement, a move to help ward off excessive volatility in
global markets during the Dragon Boat Festival holiday on June
6. The bourse will also hike silver forward contracts to 17
percent from 15 percent. It will also set gold daily trade
limits to 9 percent and silver at 12 percent from June 3."
Still, the gold fixing at the close of NYMEX trading was $1,539.1, $30 away from all time nominal highs. Incidentally, would it be too much to ask of the exchanges to provide the general public with just what the formula is that they use to make their margin hike (and, reduction) decisions? They would be amazed how quickly any allegations of collusion with the administration would disappear if only a little transparency was introduced to the "system."

And while "speculation" is always a great strawman to explain buying interest in precious metals, a far more realistic one would be that the world is once again bracing for the completely unpredictable domino effect associated with yet another spike in Greek insolvency sentiment (predictably capped by yet another Greek bank run, which is no surprise to anyone following the recent records in the CHF which has surged as more Europeans deposit funds in number Swiss bank accounts), in which the only flight to safety would be that which is not printable by global central banks. Even Kitco agrees:

“I think we’ll test the $1,600 mark sometime in the next two weeks,” said Zach Oxman, managing director of TrendMax Futures. “There are worries about the Eurozone and concerns about China slowing down. Despite the fall to $1,480, gold didn’t take the hit that silver and crude oil did.”

The debt crisis in the southern-tier European nations remains a significant factor for the markets. Greece is at the forefront of the most recent problems as concerns flared that it would not receive its next tranche of payments from the International Monetary Fund and the European Union. There are also some thoughts that China’s attempts to slow its economy are starting to take hold.

Jimmy Tintle, analyst at Transworld Futures, said the trend for gold for the past two weeks has been solidly higher and prices could easily test $1,560 next week provided there is no big news to change the trend. He is a little cautious about the markets because both the U.S. and the U.K. have three-day weekends ahead of them. Markets are closed on Monday in the U.S. for Memorial Day and in the U.K. for a bank holiday.

If prices do rise to $1,560, then gold is in striking distance of taking out the all-time nominal highs set at the beginning of the month, $1,577.40 for June gold and $1,577.70 for August gold.

Charles Nedoss, senior market strategist with Olympus Futures, said he’s “very bullish” on gold going into next week, especially given the poor performance by the U.S. dollar. The sovereign debt issue in Europe is the main support, he said. Still, he said, targeting the recent high of the $1,577 area would be “a lot of work for gold to do,” but doesn’t rule out $1,550.

As for silver, the next resistance level appears to be $40. The last time it was taken out, it took 3 weeks for the metal to make the 20% jump higher to the Hunt Bros nominal high. Any announcement out of Europe indicative that things are once again spinning out of control should be a sufficient catalyst to prompt the move higher.

 


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Mon, 05/30/2011 - 15:56 | Link to Comment emsolý
emsolý's picture

There's a good talk on gold as a wealth preserver between James Turk and Egon von Greyerz on Goldmoney.com:

http://www.goldmoney.com/video/greyerz-interview.html

Mon, 05/30/2011 - 16:32 | Link to Comment JW n FL
JW n FL's picture

if the Fed Printed $3 trillion in debt.. and another $15 Trillion in Loans (this does Not! include swap windows and TARP / TALF and so fucking on...) over three years..

 

$18 Trillion divided by 3 years ='s $6 Trillion in New Supply is Printed a Year!

 

$6 Trillion Dollars divided by 365 days ='s $1,643,835,6164 a Day in in New Supply is Printed a Day!!

 

$1,643,835,6164 Billion a Day divided by 24 hours in a Day ='s $684,931,506 an hour in New Supply is Printed an Hour!!!

 

http://goo.gl/FnxBZ  Treasury Direct $14 Trillion Debt

http://goo.gl/TMl74   $15 Trillion in Loans

http://goo.gl/EXzal  / ='s $29T

Mon, 05/30/2011 - 16:37 | Link to Comment JW n FL
JW n FL's picture

http://www.youtube.com/watch?v=CmD0s3us_vA&feature=player_embedded

 

Keiser Report: Gold Stands Rock Hard (E150)

Tue, 05/31/2011 - 00:15 | Link to Comment jeff montanye
jeff montanye's picture

as jesse notes, deliverable silver on the comex has fallen from nearly 37 million ounces to barely 31 million in the last month.  july open interest is about ten times that.

Tue, 05/31/2011 - 00:47 | Link to Comment AgShaman
AgShaman's picture

Hahaha....I hear the Bullion Banks are contracting the Edmund Fitzgerald to deliver the big bricks of silver about the land. They'll be taking the main routes thru the Great Lakes....so no worries mate!

Mon, 05/30/2011 - 16:02 | Link to Comment Bubbles the cat (not verified)
Mon, 05/30/2011 - 16:44 | Link to Comment Cynthia
Cynthia's picture

I'd like to know if Gold Bugs think that having gold in your pocket will give you a Heart of Gold:

http://www.youtube.com/watch?v=Eh44QPT1mPE&feature=related

Mon, 05/30/2011 - 19:43 | Link to Comment Al Gorerhythm
Al Gorerhythm's picture

Depends upon what criteria you use to measure a golden heart. I didn't junk you but WTF are you on about?

Tue, 05/31/2011 - 04:02 | Link to Comment Bubbles the cat (not verified)
Tue, 05/31/2011 - 09:05 | Link to Comment Bubbles the cat (not verified)
Mon, 05/30/2011 - 16:09 | Link to Comment alangreedspank
alangreedspank's picture

 

Can't remember the exact logic behind it, but some gold bug recalled gold and inflation going UP as the interest rate were being increased in the early 80s.

It takes sometimes then for inflation and gold to chill in this high interest rates environment.

 

Mon, 05/30/2011 - 16:12 | Link to Comment trav7777
trav7777's picture

depends upon if the banks are charging a higher rate than the background.

That sucks debtmoney out of the system.

The problem we face is that our currency is backed by debt, but the debts are unpayable and defaulted.

Mon, 05/30/2011 - 16:16 | Link to Comment HamyWanger
HamyWanger's picture

Actually, the only way to beat inflation is to go ahead of it. Nothing will happen if the FED does a 0.25% hike. 

The nightmare of deflationists, stock market shorters and PM haters is far from over. It has just begun. 

I expect that 100 dollars of 2015 will buy around 20 dollars of now. 

Mon, 05/30/2011 - 16:19 | Link to Comment trav7777
trav7777's picture

that would be $500/bbl oil and $7500/oz gold...against wages still paid as if $20 was still $20

Mon, 05/30/2011 - 16:29 | Link to Comment HamyWanger
HamyWanger's picture

Yep, and so what? 

If you had said to your great-grandfather that an average car would cost $10,000 in the near future, he would not have believed it. 

Each new generation unconsciously adapts to the new nominal prices. And the wages will surely do it too. 

Nominal prices in Japan and in Italy before the euro did not use to be that ridiculously high. But people have adapted, and begun to consider them normal, with new points of reference. Earnings always follow mild inflation, with a 6-month lag at worst.  

Mon, 05/30/2011 - 17:09 | Link to Comment Fiat2Zero
Fiat2Zero's picture

Well other than people can't afford to eat.

"Bringing the Middle East uprising to a US city near you"

Mon, 05/30/2011 - 17:20 | Link to Comment topcallingtroll
topcallingtroll's picture

I am going to ballpark that as a sustained inflation rate of forty percent for four years. Not going to happen.

Mon, 05/30/2011 - 17:26 | Link to Comment trav7777
trav7777's picture

wages haven't kept up for the past 40 years, dipshit

Mon, 05/30/2011 - 22:12 | Link to Comment JW n FL
JW n FL's picture

maybe longer than 40 years.. the American worker bee / debt slave.. has been being slowly boiled for at least 40 years!

 

whomever junked him needs to grow a set and speak up.

Mon, 05/30/2011 - 18:40 | Link to Comment Al Gorerhythm
Al Gorerhythm's picture

"Each new generation unconsciously adapts to the new nominal prices. And the wages will surely do it too."

Oh? Just like since the start of this current paper money system, perpetrated on us since 1913? You neglect the destruction of savings in your theory. Each new generation is asked to take up the yolk of indebted servitude, to carry the load for the past generation. The past generation, slipping quietly into retirement, discovers that its saved wages of 40 years, hasn't the purchasing power of yesteryear. Your observations are blinkered. The new generation is born into their situation and know no other normal. The older generation discovers too late, that their normalcy bias anchors them in a romantic period of purchasing power long gone. 

Think back Hamy. Draw on your memory powers. Can you see that guy in front of you holding a fob watch, saying: "You are getting sleepy, you are getting sleepy".

Mon, 05/30/2011 - 19:19 | Link to Comment HamyWanger
HamyWanger's picture

I've never said wages were to keep up exactly with inflation. I'm totally aware that inflation disrupts capital allocation. 

There will a few deaths by hunger and some chaos for 2 or 3 years, but in the end it is a small price to pay to avoid a deflationary spiral and a government default. 

Mon, 05/30/2011 - 19:23 | Link to Comment Al Gorerhythm
Al Gorerhythm's picture

Oh, yes you did. It's the new normal, you know.

Each new generation unconsciously adapts to the new nominal prices. And the wages will surely do it too. 

Mon, 05/30/2011 - 19:56 | Link to Comment Al Gorerhythm
Al Gorerhythm's picture

"There will a few deaths by hunger and some chaos for 2 or 3 years, but in the end it is a small price to pay to avoid a deflationary spiral and a government default." 

May you live in interesting times. What a complete CUNT. As long as you are insulated, huh? May some lucky bastard step over your near-lifeless body and opine "Looks like this guy needs help. Oh look, a rainbow!"

 


Tue, 05/31/2011 - 13:12 | Link to Comment Bob Sacamano
Bob Sacamano's picture

So any steps you are taking to "insulate" yourself would be hypocritical?  Ready to distribute "your insulation" equally to all below you?

Mon, 05/30/2011 - 18:44 | Link to Comment Muir
Muir's picture

@Hamy

"Yep, and so what? 


If you had said to your great-grandfather that an average car would cost $10,000 in the near future, he would not have believed it. 

Each new generation unconsciously adapts to the new nominal prices. And the wages will surely do it too. 

Nominal prices in Japan and in Italy before the euro did not use to be that ridiculously high. But people have adapted, and begun to consider them normal, with new points of reference. Earnings always follow mild inflation, with a 6-month lag at worst.  "

__

exactly!

and even though some behavioral finance types have dared to call this a bias, others, most notably Gerd Gigerenzer, have pointed out the great survival benefit to such discretionary perceptions.

Mon, 05/30/2011 - 18:37 | Link to Comment duo
duo's picture

In the '70s everything essentially tripled in price but wages went along with it. Since 2000 prices have doubled (except by BLS standards) but wages have barely moved.

Expect another 3x-5x increase in prices without wages (except for bankers) increasing this decade.  Vietnam caused the '70's inflation, Iraq/Afghanistan/Libya will cause '10s inflation.

Mon, 05/30/2011 - 18:49 | Link to Comment Al Gorerhythm
Al Gorerhythm's picture

Money printing, compound interest mumbo jumbo and credit creation causes inflation. Persistently, insidiously. Hamy World.

Mon, 05/30/2011 - 16:19 | Link to Comment Bubbles the cat (not verified)
Mon, 05/30/2011 - 16:05 | Link to Comment legal eagle
legal eagle's picture

Kids should be taught to buy one ounce of silver from every paycheck until they get full time job, then one ounce of gold (or 10 grams if all they can afford) each month. Better than any retirement plan available.

Mon, 05/30/2011 - 16:20 | Link to Comment Alpha Monkey
Alpha Monkey's picture

Not sure where you think kids work at part time, earning enough to buy an ounce of gold. Even back in the mid 90's when I was just starting work, my paychecks were only 300 or so every two weeks.  And, I might add, this was working 40hrs+ as a 16y/o at McDonalds. 

So, if minimum wage has roughly doubled since my time, these kids are only working half my hours, and the price of gold has has roughly quadrupaled.... You do the math.

 

Also, wtf is going on in gold?

Mon, 05/30/2011 - 16:40 | Link to Comment Jendrzejczyk
Jendrzejczyk's picture

"Kids should be taught to buy one ounce of silver from every paycheck..."

Mon, 05/30/2011 - 19:07 | Link to Comment Al Gorerhythm
Al Gorerhythm's picture

Kids should be taught to save from each pay cheque, a portion to be set aside to buy eventually one ounce of silver.

Mon, 05/30/2011 - 19:38 | Link to Comment knowless
knowless's picture

the tradition was to give the child a silver coin, and tell them to never spend it, just keep it unless their life depended on it, in the pocket, always, they used to sew it into clothes, when people only had one change of them. it instilled a sense of value, a notion that in times of trouble, you would have a way to avert crisis.

 

Mon, 05/30/2011 - 17:53 | Link to Comment knowless
knowless's picture

holding pattern again, last time i saw it was:april 21st right before the fifty sky.  not gonna really predict anything, but maybe a big spike this week?

 

http://www.zerohedge.com/forum/what-gold-chart

http://twabbler.net/images/35340770006840958880.jpg

today:

http://i.imgur.com/6nLK9.jpg

Mon, 05/30/2011 - 16:12 | Link to Comment Sudden Debt
Sudden Debt's picture

It's pretty clear they can't keep it under control forever.

Today, while driving to work I was wondering: A average house is worth 10.000 ounces of silver. If you think about it that only 1/10th of a ounce of silver is mined per person on earth, a house is worth the silvermining for 100.000 people.

Put in this calculation the fact that industrial demand is bigger than the mining for year now and that deficit keeps on rising, this will eventually boost silver into the stratosphere.

 

Mon, 05/30/2011 - 18:01 | Link to Comment Hansel
Hansel's picture

Same thinking applies to gold.  There is roughly 0.85 oz gold per person on the planet, and also about 0.85 oz gold in America's reserve per American, yet in the U.S. the average price of a new home is $268,900, or 174 oz of gold.  No numbers make sense right now when calculating gold as money.

Mon, 05/30/2011 - 18:06 | Link to Comment Misstrial
Misstrial's picture

There are already places in the USA where you can buy a house for one gold coin.

~Misstrial

Mon, 05/30/2011 - 18:53 | Link to Comment Manthong
Manthong's picture

You will probably need some guns though, if you plan to move in.

Mon, 05/30/2011 - 16:12 | Link to Comment duo
duo's picture

A 1961 quarter bought a gallon of gas.  Today that same quarter is worth about $7, or almost two gallons.  Either silver is overvalued by about 2x, or $7 gas is on the horizon.

Mon, 05/30/2011 - 16:17 | Link to Comment trav7777
trav7777's picture

it's possible for you to grasp that production ratios of materials may change, right?

Mon, 05/30/2011 - 16:20 | Link to Comment HamyWanger
HamyWanger's picture

Unless there's a big technological advance in one sector and not the other, it is doubtful. 

Mon, 05/30/2011 - 16:52 | Link to Comment eisley79
eisley79's picture

Why did you pick 1961, and quarters?  How about dollars, bullion silver, and gasoline, charted for 100 years, see if there is any value in your observation.

 

Also note what the treasury was doing in 1961 'son'

http://www.silverinstitute.org/19601965.php

Mon, 05/30/2011 - 18:34 | Link to Comment duo
duo's picture

In Babylon 3000 years ago an ounce of gold bought 350 loaves of bread.  Do the math.

Mon, 05/30/2011 - 19:16 | Link to Comment Al Gorerhythm
Al Gorerhythm's picture

Yep. From antiquity to modern times, a half-wit was and is still, a half-wit. They just don't (can't) get it.

Mon, 05/30/2011 - 20:42 | Link to Comment duo
duo's picture

It's amazing that prices in gold have stayed almost constant for the duration of human history, yet so many believe that paper can for some reason render history meaningless.

Mon, 05/30/2011 - 17:24 | Link to Comment Fiat2Zero
Fiat2Zero's picture

The technological advance is called war. The government has been subsidizing gas prices in a variety of ways for a long time.

The actual cost at the pump is far more when you factor in indirect costs.

Conversely, the government has been suppressing the price of silver for a long fucking time. At least from the 60's with the introduction of the Coinage Act, when Johnson eliminated silver from our coins, threatened that the Treasury would dump silver onto the market and crash the price, and eliminated the final tie of "future exchange" with our currency.

Silver is undervalued by at least 3 times currently.

You can't make solar panels without silver (10% of the cost), a cruise missile has 500 oz of silver in it.

Industrial demand is rising, but nowhere's near as fast as investment demand.

Try telling 1 billion Chinese and 1 billion Indians experiencing super high food inflation that they shouldn't buy silver. They'll tell you silver is real money and that people in the US don't have a fucking clue.

Oh yeah, also, the Chinese and Indian peasantry (who buy the silver) do not read ZH. Therefore the Jedi Mind tricks of paid shills like Hamy Wanger do not affect them.

Mon, 05/30/2011 - 18:25 | Link to Comment A_MacLaren
A_MacLaren's picture

a cruise missile has 500 oz of silver in it.

I've heard this "thrown out there" but never seen it documented.  Got a link?

Mon, 05/30/2011 - 19:06 | Link to Comment JW n FL
JW n FL's picture

I think last year it was like 20 oz's.. and the number has grown to 500 for sure! LOL!!

 

and I Love metal! so I am no silver hater.. gold is for tungstun lovers! LOL

 

I own Gold so take it and shut it!

Mon, 05/30/2011 - 20:47 | Link to Comment A_MacLaren
A_MacLaren's picture

I'm diversified, I own both.

Mon, 05/30/2011 - 22:20 | Link to Comment JW n FL
JW n FL's picture

that was more for the idiot gold salesmen here not you bro..

 

so take your 1,000 oz silver cruise missile and...

 

j/k.. unless that your type of thing.. given the dress and all.

Tue, 05/31/2011 - 00:44 | Link to Comment Manthong
Manthong's picture

Twenty ounces sounds about right - most of which is probably in the silver oxide aerospace quality battery.

Heavy electric torpedoes could probably have a monster box of Ag in them as they use huge silver oxide batteries that weigh near 1000 pounds.

http://www.highenergyltd.com/Silver2.htm

Mon, 05/30/2011 - 18:38 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

An increase in production due to greater technology will increase output and quicken the pace of production which will increase the time frame of the peak of each given resource.

Mon, 05/30/2011 - 19:21 | Link to Comment Al Gorerhythm
Al Gorerhythm's picture

Oh boy.

Brain, meet dullard. 

Brain: Duly noted.

Mon, 05/30/2011 - 16:24 | Link to Comment Sudden Debt
Sudden Debt's picture

in 61, oil was a pretty easy find.

If a arab empties his gun anywhere in the desert, oil came out.

But if you want to compaire something to 61 and today: 1liter of water. Back than and now.

1 liter now costs more than 1 liter of oil.

 

Mon, 05/30/2011 - 18:38 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Yet tar sand proponents want to rip aprt rain forests that produce water for an oil resource that is very finite and has a low EROEI.   The long term EROEI of a rain forest is priceless.

Mon, 05/30/2011 - 16:53 | Link to Comment cosmictrainwreck
cosmictrainwreck's picture

well...gee whiz...hmmm....... lemme see... OK, I got it! I'll take $7 gas for 200, Alex

Mon, 05/30/2011 - 23:02 | Link to Comment Manthong
Manthong's picture

Rather than consider production ratio, consider destruction ratio and use a Morgan dollar.

From 1878 until 1964 a dollar’s worth of US currency equaled a Morgan. Today, about 30 dollars of US currency is needed to exchange for a common Morgan.

In 1964 when the US went off of the silver standard, a dollars worth of currency OR a Morgan would buy 3 gallons of gas. A US dollar today buys a quart of gas, but a Morgan is worth 7.5 gallons of gas.

The ratio’s will vary a bit according to supply and demand, but it cannot be argued that the dollar will continue to be an increasingly debased paper note of debt and that the Morgan will remain an unencumbered precious metal unit of value.

Mon, 05/30/2011 - 16:13 | Link to Comment BobPaulson
BobPaulson's picture

Kitco "news" says today was an uneventful day on the gold market. 

Mon, 05/30/2011 - 17:50 | Link to Comment Bay of Pigs
Bay of Pigs's picture

Yes, a paltry $2 from an all time closing high (London PM fix) of $1541. Highest AM fix is $1546.50.

I'm sure Jon Nadler will be dead panning that as totally irrelevant tomorrow.

Mon, 05/30/2011 - 18:44 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The only thing that I understand less than shorting PM is how anyone pays for his advice.

Mon, 05/30/2011 - 19:36 | Link to Comment Coldfire
Coldfire's picture

It is incredible that Jon Nadler has not shamed himself into silence yet. 

Mon, 05/30/2011 - 16:18 | Link to Comment TempFlashback
TempFlashback's picture

The margin requirements revert to the original levels on June 7th following the end of the holiday.

Mon, 05/30/2011 - 16:57 | Link to Comment Caviar Emptor
Caviar Emptor's picture

I'll give you my gold when you take it from out of my cold dead hands.

Mon, 05/30/2011 - 16:58 | Link to Comment Selah
Selah's picture

 

I predict that Gold will be crushed tonight!

Ok, so my prediction last night didn't go so well, but if it had, I would be hailed as an omniscient forecaster of Gold prices. Unlike the rapture-dude, I can't possibly be wrong twice in a row...

 

Mon, 05/30/2011 - 17:19 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

You will be.

Mon, 05/30/2011 - 20:08 | Link to Comment lawrence1
lawrence1's picture

¨Crushed¨as in a lower fiat price, a gift to those who distinguish between price and value.

Bring it on, I got toilet paper to spend.

Mon, 05/30/2011 - 21:06 | Link to Comment Selah
Mon, 05/30/2011 - 17:00 | Link to Comment buzzsaw99
buzzsaw99's picture

5X - 10X leverage is still insane. It should be 20% down minimum just like it should be for houses.

Mon, 05/30/2011 - 17:15 | Link to Comment Caviar Emptor
Caviar Emptor's picture

There is nothing to fear but fear itself. 

But just in case, better have gold 

Mon, 05/30/2011 - 18:29 | Link to Comment A_MacLaren
A_MacLaren's picture

Don't forget the copper jacketed lead seated in brass cases and appropriate dispensing devices.

Mon, 05/30/2011 - 22:24 | Link to Comment JW n FL
JW n FL's picture

++++++++++++++++++++++++++++++++++

and a skirt to run real fast in!

j/k unless thats your type of thing.. jogging in kilts.

or sewing... http://www.squidoo.com/makeakilt

Tue, 05/31/2011 - 00:27 | Link to Comment A_MacLaren
A_MacLaren's picture

Its not a skirt, its a kilt.  Say it, wear it, be it.  Honor and cherish Freedom.

"As long as a hundred of us remain alive we will never be subject to tyrannical dominion, because it is not for glory or riches or honor that we fight, but for freedom alone which no worthy man loses except with his life."

Tue, 05/31/2011 - 09:16 | Link to Comment JW n FL
JW n FL's picture

and you wonder why we like you so much?

it damn sure aint the skirt!

but the belief system to me, is just fucking art...

Tue, 05/31/2011 - 09:16 | Link to Comment JW n FL
JW n FL's picture

art in a God inspired way.. not in some other way that is less than. for clarity.

Mon, 05/30/2011 - 17:13 | Link to Comment Fiat2Zero
Fiat2Zero's picture

People, is this so fucking hard?

Buy gold, buy silver. Physical.

How much longer do you think the powers that be are going to give you the fire sale prices via price controls?

Price controls always hasten the scarcity of what they are trying to control. This is fucking basic econ 101. Would it help to occasionally look at history? Yes it was dusty and irrelevant in High School, but that was because you were constantly preoccupied with getting laid by that cheerleader who wouldn't have anything to do with you.

History - yes, it's relevant.

Mon, 05/30/2011 - 18:00 | Link to Comment Misstrial
Misstrial's picture

The entire boomer generation was indoctrinated into real estate as the primary asset class.

This is why its hard, imo. They have to get over the property gestalt.

More likely than not, they won't.

~Misstrial

Mon, 05/30/2011 - 20:14 | Link to Comment lawrence1
lawrence1's picture

When I write my piece on moving to a foreign country, my cardinal rule is that you should never buy real estate there until you have lived there at least a year, know the ins and outs, and are also sure that it is better than simply renting. Better almost always to have gold and silver.  Well, if you have to be involved in real estate, become a broker and sell it to the indoctrinated Americans.

Mon, 05/30/2011 - 18:44 | Link to Comment Muir
Muir's picture

"People, is this so fucking hard?


Buy gold, buy silver. Physical."

_

exactly!

I mean how many ways can I fucking say this?

Steal, borrow from you Mother, put your 14 year old daughter out on the street hustling if necessary, but just buy more!


Mon, 05/30/2011 - 19:48 | Link to Comment Al Gorerhythm
Al Gorerhythm's picture

Steal, borrow from you Mother, put your 14 year old daughter out on the street hustling if necessary, but just buy more

I don't want to adopt the moral rectitude of a modern day (any day) banker. At least you only borrowed from your mother.

Mon, 05/30/2011 - 17:15 | Link to Comment Caviar Emptor
Caviar Emptor's picture

With gold in my pockets, I said to the central banker : "Go ahead, make my day!" 

Mon, 05/30/2011 - 17:27 | Link to Comment Fiat2Zero
Fiat2Zero's picture

I expect this wimpy increase of 20% for margin (from 10 to 12%) will do absolutely nothing, which must lead to more margin increases immediately.

I fully expect a smackdown from the CME, this being a holiday and silver acting like nothing has happened.  Let's see if they go full guns.

Mon, 05/30/2011 - 18:42 | Link to Comment gametracker
gametracker's picture

I fully expect a smackdown from the CME

 

That would be an awesome sign for the ongoing (10 years now) bull market in PM's.

Margin hikes are a BULLISH indicator. It's lookin like this bull is ready to roll higher again after the latest correction.

Wait until more than the present 3% of the citizens realize that the bankers will steal everything from them through inflation and other means (ex. overnight currency devaluation, pension confiscation, etc, etc). Imagine even 20% of the citizens protecting themselves from the vipers.

The similarities between the start of Argentina's grand theft in the 90's and what's happening now in America are AMAZING. Even the same vipers are involved! Absolutely amazing.

Mon, 05/30/2011 - 17:50 | Link to Comment bbq on whitehou...
bbq on whitehouse lawn's picture

You don't buy gold or silver, you cashout into gold and silver. You cash in chips at a casino for currency just as you cash in currency for gold/silver.

Just because everyone and every game in a casino wants chips, doesn't make it money.

Mon, 05/30/2011 - 19:16 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

+1, good analogy

Mon, 05/30/2011 - 18:37 | Link to Comment Muir
Muir's picture

Well fuck it, why not make it 1% margin?

Mon, 05/30/2011 - 18:48 | Link to Comment mcmoo
mcmoo's picture

I don't know if this has been posted, I have not read much ZeroHedge over the weekend. But NY times did article on Utah's egal Tender Act of 2011.

Utah Law Encourages Gold and Silver Coin Use -


Mon, 05/30/2011 - 18:59 | Link to Comment Muir
Muir's picture

_

Peace and Harmony, are you of the body?

_

Mon, 05/30/2011 - 19:18 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Wait so now all the gold markets are hiking margins together?  Yeah.....anyone want to bet China is not in on the take?  Anyone?  The New World Order includes all fascist governments.  Trust no one but tourself, and your Mama.

Mon, 05/30/2011 - 19:19 | Link to Comment Ivanovich
Ivanovich's picture

Meanwhile, EUR/USD at new highs.

Mon, 05/30/2011 - 19:29 | Link to Comment Coldfire
Coldfire's picture

Reducing wag-the-dog leverage in the short-term on the barometer of central bank policy failure will only lengthen and strengthen the bull run trend in the longer-term.

Mon, 05/30/2011 - 20:16 | Link to Comment lawrence1
lawrence1's picture

Don´t do paper of any kind, close your brokerage accounts, buy physical gold and silver. Starve the motherfuckers.

Mon, 05/30/2011 - 21:26 | Link to Comment Dolemite
Dolemite's picture

Gold to make leg higher?

http://deadcatbouncing.blogspot.com/

Mon, 05/30/2011 - 22:35 | Link to Comment joiceca
joiceca's picture

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Tue, 05/31/2011 - 01:46 | Link to Comment Mec-sick-o
Mec-sick-o's picture

Dump all above fashion BS and buy PM!

Tue, 05/31/2011 - 10:20 | Link to Comment PulauHantu29
PulauHantu29's picture

Who cares about the margin requirement when anyone can walk in and pay for their three kilo 24k physical bars with cash? I read in Reuters people in Switzerland are walking out with one ton of gold...yes, one ton!....If anything, the margin hikes will make yoru purchase more pleasurable due to a slightly lower physical gold price you will have to pay.

Only speculators and Flippers get hurt.

One "Q"...when do they raise margin requirement for AAPL and Netflix?

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