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Inflationary Guerilla Tactics Resume As Comex, Nymex Hike Margins On Gold, Silver, Cracks, Spreads And Other Products
Wonder why the smart money was rushing headlong out of gold and silver over the past few days, and especially today in the AM session? Here is your answer: in tried and true fashion the Comex just hiked margins in gold, and silver by about 6%, and threw in a few other commodities to mask things up. And unlike the last time it did it, when it could at least pretend to justify its actions with the surge in gold price, this time with the PM complex dropping, we wonder what excuse the CME will use this time. Initial and Maintenance margins were just increased in everything from 10 Tr Oz Gold Futs, Comex 100 Gold Futures, Comex Miny Gold and Silver, E-mini Gold and Silver, Comex 5000 silver futures to Silver trade at settle. Also added were Copper, Iron Ore, propane, butane, and other nat gas. Most notably, and confirming that the administration and the money printing authorities are terrified by the surge in crude, the CME also hiked margins in various refined products and coal. The official scramble to "contain" the aftermath of Bernanke's lunacy is accelerating. We wonder when REDI, Prime Brokers and E-trade will comparable collapse purchasing margin for stock trading accounts. Of course, as with all other such superficial market interventions, the impact is shallow and is overrun in a matter of days.
And no...there was absolutely no leak this time. We promise.
Report links (metals and coal/petroleum)
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thanks for the link. newt gingrich is a fountain of wisdom. he and bill clinton remind me of the old haig and haig scottie and westie.
The implication of the price dropping on the increased margin requirements is that there are more paper longs than shorts, so something doesn't add up. If CFTC Commissioner Chilton is to be believed there is or was a large paper short in silver. If that were so, why the move down on increased margin?
I believe the theory goes: because the biggest, most naked shorts didn't actually have to come up with any fiatsco's whatsoever to cover the costs of the margin hikes, they just had a decimal place moved a few places to the right on their accounts; whereas the lion's share of the longs actually have to come up with the currency, cutting into capital they would otherwise be using to buy physical, or even forcing them into selling outright if they can't make the surprise margin requirements.
Eventually, if there truly is a supply issue and the longs remain stoic on delivery, yes, the price of the commodity in question should go up even faster as a result. But in the short term it buys the shorts some time to cover, and at a lower price.
If the above is in fact true, then that is some egregious, heinous manipulation.
If you're interested you could try testing the theory yourself... guess how.
Regards
Increased margins push prices up on commodities in limited supply, as producers can no longer cost effectively hedge production.
Yah, because 'producers' are the biggest part of those using (naked) shorts to hedge, just like it is supposed to be, riiiiiiiight.
Which PM producers out there still have hedge books these days anyway? No seriously, I'd like to know if I've missed any so I can make sure I don't go near them.
Did Pt margins get raised too? No? Hunh. Isn't that, along with copper, another commodity some big 'screw you effing peons' bank was pumping not too long ago?
You know, even if it doesn't have any effect at all (which is highly unlikely if 365million ounces are taken off the table), 30 bux for an ounce of silver isn't much skin off of most peoples' noses... just sayin'; no reason.
Disclaimer: You may be even more allergic to silver than you are to a Monstrous Santa tomato. Do your own due diligence, do. Do the Dew
Regards
Rumors have China needing to get in on gold bullion and the US holing the door open in exchange for currency correction and holding US toxic ponzi bonds.
Gold popped the lower bollinger band and moved up quickly.
Its lower that the 50 dma - a tough support line
Junior miners have moved 20% down in the freak out.
Also, keep in mind the banks like to flush call options near expiration date.
So, like, they never have to deliveron anything. A crooked and wonderful scam by Wall Street.
If you are playing the long 10 year plan, gold is said to not even be near parabolic by the standards of the 70s.
Bob Hoye and Ross Clark say about 1600 by August. 2300 being high.
I'm pleased the HUI is lower. I haven't had the cash lately to accumulate more juniors, but thankfully the Central Committee for Cnaked Pshorts is buying me some time.
Crook bastards
This is how I see the well orchestrated raid transpiring. The order of events may be slightly out of kilter but its not far off the mark in my opinion:
Geithner talks to the Bernank, says China is flying in and we need to find some way to make the coming hyperinflation look less threatening during the visit so that we can cut a deal on letting the yuan rise against the dollar so that we can get even more hyperinflation. He then also calls his friends over at Crimex, says we need to do something to knock commodities down but especially silver and gold, but it can't be too obvious. So Crimex bosses say "done" and they RAISED MARGIN CALLS about 6% on gold and silver and a few other commodities to make the raid look not so obvious.
In the meantime the Bernank calls his friends over at the JP and their counterparts in the UK and that is the HB and tells them that Crimex will be bumping the margin calls and get ready to bump up your short positions strongly for a nice short term bump and to try to flush all the weak longs out and hopefully flush the other uncommitted and unsure gold and silver longs out. Then the other members of the team do the PR work calling in the normal shills and press people to make negative statements and certain "analysts" to make gold negative predictions.
Thing of it is, more and more investors, large and small no how this game is played and the one's who are smart, just take these major attacks as an opportunity to take delivery on more physical or buy trusted paper proxies, like PSLV and not the other one with the same letters except one and in which the JP is the custodial and which can be used in the attack on silver in the views of many.
The mainstream then does there normal in-bedded reporting saying that data supports a stronger dollar and that the "risk play is off" and there normal stream of snow and the less informed community buys it, sells it and then those who really know what is happening simply take it as another buying opportunity. No, the dollar and euro are both toast and when the Yuan starts to appreciate it that trend will accelerate the toastyness. The debt is UNREPAYABLE, and default or devalue are the choices. Default is a loss of face and so devalue is the way we are going.
Duffminster
What is Plan B if China dumps its U.S. debt?
Dumps to whom, Ben?
Any sucker who will take it; it looks like Canada will play, and cough up prime resources for the 'privilege'. That is if they don't hand over what's left of their sovereignty to the Europeans first.
Comex/NYMEX/CME whatever you want to call them are so corrupt they make JP Morgan and Goldman look like Saints.
don't know what the big deal is, just a massive long pos liquidation coming up. mind you it may blow the ETF market apart.
happened in Sept (i think) 2010 when silver margins were increased etc. Now you have major coal, oil, grain bubbles forming. oil has had it's spike up, mix that with food spikes and a coal/grain spike (aussie floods) + china interest rate spec prior to lunar yr = liquidation
No big deal,right?
$400 lower left, $1400 upper right ... ( and rolling over? )
You decide, look at the picture... http://finviz.com/futures_charts.ashx?t=GC&p=w1
Pay up today, or have another look later?
yeah that's the markets for ya, maybe you should have set a put on gld after SPDR became a super bubble.
Whoops looks like you two failed to examine the COT charts below your 'proof'... ah well, I guess people will see what they want to, or are sometimes told to.
But thanks for the pretty chart!
Last time prices where smashed this
way it didn't last very long did it?
Time to buy next few days.
It's called bargain hunting
Yippyyaheeee!!!
Let he without silver be the first to cast...
One of these times, the only ones long will be those who get the leak and dump the day before, like today. I don't play gold futures, and won't ever even consider doing so, nor will I buy any metal or stocks on margin.
It only works as long as people believe the paper is as good as real metal. Fuck them all times two.
"paper is but the ghost of money, not money itself" - Thomas Jefferson
This will boost PMs:
Policy makers are working behind the scenes to come up with a way to let states declare bankruptcy and get out from under crushing debts, including the pensions they have promised to retired public workers.
http://www.nytimes.com/2011/01/21/business/economy/21bankruptcy.html?_r=2&src=busln
The smart money rushing headlong out of gold and silver over the past few days??
What's so smart about rolling over the governments debt? I think fools are 'selling' because they somehow think 'inflation' will be contained, as if the PBoC by raising interest rates will somehow make its 'money' better. Clueless. I bet JP Morgan is buying with both hands.
As for the margin hikes, I've said it before, the rules of the exchange explictly state that margins can be hiked at the determination of the exchange. And it works both ways, a rapidly falling price leads to the longs getting squeezed so the exchange hikes margins to make sure the exchange is covered in the event of default by the longs. No different when the commodity price rises rapidly.
Fuckin' hell people, it even states it on the letter; As per the normal review of market volatility to ensure adequate collateral coverage.
Anybody remember Don Coxe's "Midnight Massacre"??
Looks like the PigMen are executing it again, in order to bring down food prices, crush the CRB speculators, and quell the food riots.
Easy to do, just rally US$ and let bonds fall, problem solved.
What fucking rally are you talking about?
Ben bernanke couldn't orchestrate a plumbing repair.
Everybody knows what's coming and everybody knows where to park.
http://www.zerohedge.com/article/inflation-expectation-60-6-months-%E2%8...
At least everybody that reads zerohedge and doesn't try to talk to catfishmouths.
Sorry no delivering the suckers bonus for you.
Knowing what everyone knows isn't worth much but you're best bid.
My metal.. v. your paper.. dont get me wrong I am hedged in paper...
http://www.youtube.com/watch?v=AId_UiPtPpQ&feature=related
http://www.youtube.com/watch?v=2QLvXTdY3dQ&feature=related
I find it amazing that some holding gold whine so much when a normal correction sets in. Lets see, gold up 1,000 dollars the past decade and the last week or so it is down 100.00 from the high. Not even 10%. And FFIV drops 21% in 15 minutes. Does anyone really think a top is in with the insanity on this planet non-stop printing.
Ya think it is getting better out there, then AMZN CMG PCLN and BIDU are for you. I will stick with my miners. No shorts though. And yes, gold was a perfect short lately. So what.
I sold my trading positions but never give up core. Add a little bit at the end of each day. When it turns, look out.
Only $100 Trillion more?
Why not a "Bazillion"?
That's right, we "need" $100 Trillion more CREDIT over the next 10 years!
Why stop there? Actually the system CANNOT stop there, in fact if you understand the mechanics of today's fiat financial system, credit creation can NEVER EVER stop. It must continually grow and at an ever more exponentially rapid pace. Period, end of story. It can never stop, that is until it does!
In any Ponzi scheme needs new "inputs", a must to continue and can never slow down let alone stop.
The current problem is that back in 2006-07 we reached THE global "debt saturation" level and credit creation began to slow. THIS is why the Fed is monetizing debt under it's QE programs, total credit outstanding MUST expand or the Ponzi scheme is exposed.
Think back 10 or 15 years, $100 Billion was a BIG BIG number, now it is merely chicken feed!
As for thoughts of $ Trillions, it was unthinkable. Now the word "quadrillion" is used when referring to the size of the derivatives market and it will not stop there. No, unless the monetary system is changed, "millions" will become commonplace even in supermarkets, "bazillions" will eventually become a new number! Seriously, with this much "money" being talked about and thrown around, thank God for computers because the human mind is incapable of calculating nor fathoming such numbers.
The most humorous thing happening today is that investors are finally catching on and buying REAL Gold and Silver in amounts never seen before, yet the prices have gone down.
How can this possibly be?
Easy, sell futures which is exactly what is happening. It has worked in the past and is working again now, it will work until......well, until it doesn't.
When that will be? The day is coming soon!
The most important thing to understand while these "operations" to knock the price down are underway is to know "where" the road ultimately ends. It does not matter how winding the road is as long as you know the final destination. This final destination is no magical secret. The bottom line is that...
Gold and Silver have always been MONEY, they ARE money and they will ALWAYS be money.
When we get to end of the current "fiat road", it will be ounces that will be counted to calculate wealth, not pieces of paper!
The point is that no matter how sharp or severe this correction ultimately becomes you must believe in the math. If you have done the math and logic in your own head, please believe in yourself and do not let the bastards win with false Ponzi propaganda. Do not allow false, painted tapes and "created" reality move you from what you know!
When it costs nothing to create something (fiat paper currency) then by definition it cannot, has not and will NEVER have value, period. It can have "perceived" value but in the end it does not have real value.
Everything today is about perception which is why "they" are working so so hard to knock the metals down. In other words, if metal is bad then their freely created paper must be good, right?
It will work until it doesn't. The "it doesn't" part will happen when something breaks down such as food supply. The world stands at the abyss of not being able to feed the entire population, THIS is how perceptions get smashed.
The best propagandist who ever lived cannot make a hungry person believe all is well while his or her stomach is growling! Governments can sell all the rice futures they want to, it will not satisfy stomachs nor quell an angry population. Rice could be deemed "free" by all governments but that does not nor will not create the real supply that people actually eat. It is really just this simple, governments can sell all the "paper Gold and Silver" they want to, it will not satisfy the very real and growing physical demand!
So how is it possible that the price of Silver has dropped 10% in two weeks while at the same time the U.S. mint has sold more Silver Eagles in these same two weeks than in ANY month sice 1986? Huh, huh? Tell me how Mr. "Silver is a free market" Gensler!
People are hungry, very hungry, for the real thing! You cannot eat paper rice any more than you can spend paper Silver and therein lies the problem for those now managing "perceptions"!
Bill's presentations in Vancouver, this weekend, is why GATA has got this move so right over the last decade, while many of GATA’s critics and others in the mainstream gold world got it so wrong.
The answer is they have been working with the wrong supply/demand numbers as a result of their failure to account for the gold/silver price suppression scheme.
As you know all too well, the debacle since the beginning of the year is a forced one, which only increases demand for physical gold and silver and exacerbates the bigger picture problems for The Gold Cartel.
Anyone can be a raging bull when the markets are flying.
Understanding the real market fundamentals on setbacks like this is the key to making the big money by being there for the real big move. This is what the GATA camp brings to the table. Our acquired knowledge has stood all of us very well for a long time.
lemet.
I.....must....buy....more. Many thanks to Blythe, Gensler, JPM.
I am Jack's raging sense of frustration.
Just caught this thread. Fantastic work as always. I'm prepping for London.
I ain't selling my stash in no panic - just hoping price stays down till payday next week so I can get rid of more fiat binary digits and get me some more physical.
++ to that!!
lol @ Smart money Thanks for the discount..I threw a few more ounces onto the pile. BTFD?? no, I just buy whenever I have excess paper
Do you think the PM options traders are buying all these Silver/Gold Eagles ?
A record month and its not even over yet. ?
"Total sales of silver bullion by the U.S. Mint hit a 26-year high of 4,588,000 ounces in January"
" That buying comes despite, or perhaps because of, the near 7% slide in the price of silver so far in 2011"
http://www.investorplace.com/28828/shiny-or-tarnished-options-to-play-the-silver-trade/
This takedown is to get Ma and Pa kettle off their physical buying binge.
The Ma's and Pa's are a little smarter each time they try and quell these fevers as they are now using the power of the internet to seek the truth.
When the "Kettles" decide to invest in Gold what do they do ?
Google it !
What do they see ?
The Mcquires, The law suits, the record sales, the crash jp campaign, the printing presses and many other things that are telling them to Buy.
I think they are going to shake the "FUCK" out of this thing to "try" and get the Kettles to sell.
My question is will they sell ?
This could backfire and increase the physical demand.
The Chinese are building on a trend that’s likely to last
http://www.marketwatch.com/story/china-buys-gold-and-the-world-follows-2...
The excessive inflation is not like "guerilla", it will be like a FLOOD, spreaded into all and every home.
This is a correction and we all having been waiting for this.
I am long gold and silver and those with cojones will
find this a buying opportunity.We are still in one of the worst
economic disaster,the fiat currency is tanking and they
will do whatever it takes to people scared and out of
gold and silver.Nothing has changed, the printing press
is still on 24/7, europe is in full blown crisis the US can never be able to pay its debts
so I am quite comfortable buying the dips.
lunacy mask; absolutely.
this is dire
whoever thinks the government will save them will die.
So is this a bottom or a top for PM's? I see some of both on this blog. Who can say for sure where the bottom or top is? Increasing the margins means they're adjusting for the impending inflation it would seem to me. There's going to be some nasty inflation at some point in the energy sector which will extend throughout causing everything to go up. Stay in PM's or stay in stocks, stay in both or dump both?
You say nasty inflation is coming? I had to run to the store today for some margarine and noticed that a pound of Land O'Lakes butter was $5.49!
I said, "You have got to be fucking shitting me." Really. I did.
I guess butter's out front on this one.
Where should equities truly be? In the PISSER (say S&P 666 again or lower).
However, $ Trillion$'s of free taxpayer gravy (future blood) will buy a lot of points in the markets thus...part of the game plan is to attempt to debase those who are going to PM's to avoid the inevitable inflation of fiat monetary hijinks.
They must make you PERCEIVE that PM's and other commodities have no value. It is about moving the water in the ocean, not just one wave. The tide, not the surf.
They are DESPERATE to stem the tide in capital going to foreign currencies and commodities; to survive, the Wall Street machine needs outside capital to go into EQUITIES because without a buyer they cannot SELL.
rahmbo deadfish emmannuelized question...
and what the fuck is fucken copper still really going to be shittin itself as a currency?
roman fuckers made bronze so what the fuck does 2011 mean for that shit?
(apparently dead fish likes profanity, but seriously, should i be saving pre 83' pennies?)
Inflation is a sure thing and they know it,so the raid
by the boys to shake out all weak longs in gold and silver.
I personally will like to hold gold and silver than have my
money in any paper investment for the time being.
Have faith gold and silver has been money for thousands
of years.
Yes the troll and bigger dickus have tried to save you. If you have too much silver to sleep at night think of ways to limit volatility because downside volatility is a bitch. Silver right now is a speculative play. Its hard to call yourself an investor if silver makes up more than five percent of your portfolio. You are just buying lottery tickets if overweight excessively. The selling decision is just as important as the buying decision if you want to avoid the elevator ride down.
SPY was around 1280 in early 2006 ( just like today ).... Silver was at $6
Silver at $30 today = SPY at 6400
Silver can come back, way back .... $20 would be a normal retrace,
Let it rain.
Wait for the carnage and buy physical.
Woohoo another new use for silver!!
http://www.gizmag.com/killer-paper-could-prolong-shelf-life-of-foods/176...
you know what would be weird, if the FRNs incorporated silver into the paper to be anti-bacterial (because we all know what has been engrained into circulated currency).
TREMENDOUS UPSIDE PRESSURE ON GOLD NOW!
Fundamentals havn’t changed that much so by manipulating the price of silver and gold down they put a lot of upsite pressure on these precious metals. Gold doesn’t have to test $1,430 oz anymore cause on Dec. 7, 2010 gold reached an all time high of $1,431.25 oz.
So with a gold at a low now of $1,341 oz we’re down $90 from this all time high. This is ridiculous of course since gold should be at $2,500 oz right now! Reflecting today's real fundamentals in today's doomed market conditions, printing money as far as the eye can see.
GOLD SILVER Sell Off THE END? Or a Buying opportunity? http://www.youtube.com/watch?v=OFicrmXIMKI
James Turk - Gold & Silver to Take Off Despite Weakness, 20 January 2011, by Eric King (King World News) http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/1/20_James_Turk_-_Gold_&_Silver_to_Take_Off_Despite_Weakness.html