With Now Daily Margin Hikes In Silver, Is The SLV ETF Itself Next?

Tyler Durden's picture

Following relentless margin hikes in silver on various exchanges, here are some thoughts on what may happen as the "regulators" do everything in their power to bring down commodity prices down as the broader population increasingly creates their own gold (and as the case may be silver) standard.

From Shortetflist

Could FINRA raise the margin requirement on the Silver ETF (NYSE: SLV)?

Absolutely.

After trading 200 MM shares per day, along with outpacing the daily
volume in the SPY, it is safe to say that the Silver ETF is leading the
futures at this point so here is the question I pose.

When is Finra going to raise the margin on the SLV ETF like it did on all the leveraged and inverse products a couple of years ago?

Right now to buy the SLV etf eats up about 22K in margin buying power,  imagine if this were doubled?

FINRA and other folks are keenly aware of this trading vehicle,
particularly when an unhealthy market exists.  Now if the Silver ETF
trading settles down to normal levels, probably not much will happen but
if it keeps this crazy pace up,  it is very difficult to rule this out.

Just some food for thought on where this thing could go.

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vast-dom's picture

help -- is the SLV etf going to tank???

topcallingtroll's picture

I can tell by your comment that your money are belong to me now.

In Amerika you dont own SLV. SLV own you!

TruthInSunshine's picture

OT, everyone, but is The Bernanke really feeling the heat and wrath?:

05-03 12:10: Fed talking about exit strategy from QE2 according to CNBC
earnyermoney's picture

More jawboning to prop up the dollar, IMO. Watch what they do,

Johnny Lawrence's picture

If that happens, kiss the stock market goodbye. 

trav7777's picture

another lemming who got sucked in by the idiot pumpers...silver to 60 by "next week" buy buy buy buy...even with an RSI of 88, buy buy buy

Bay of Pigs's picture

I used to enjoy some of your posts, but now you're just a bitter asshole looking to hammer on those who disagree with you.

So when silver comes back up I'm sure you'll be there to congratulate the people who actually buy and hold long term?

No doubt Trav...

What does it all mean's picture

It's the otherway around with Trav777, ZH and its silver bugs are not being realistic....  

eisley79's picture

yes, its fallen all the way back to when again?  10 years ago? 5 years ago? 2 years ago? 1 year ago?  6 months ago?

What is it, remind us again lol.  I went on vacation for a month and just got back, what happened?

jesse livermoore's picture

it fell all the way back  to last weeks levels.... hahahahahahahahaha

LudwigVon's picture

CLEARLY WE ARE NOW ENTERING THE BEAR MARKET.

ruffian's picture

have you never heard of CEF? do some homework................

Saxxon's picture

vast-dom; yes.

Now I understand the old-timers pounding the desk the last ten years about owning physical.

That hyperbolic spike chart was there for everyone to see.

HAL 9000's picture

I expect it to fall to $32-34 for next support - just an educated guess.

John Hussman has been warning that this parabolic move would end.

(www.hussman.net)

Also significant, Eric Janszen (www.itulip.com) sold all his Silver last Friday. He's still holding gold as I understand. 

I follow a momentum system on commodities and rode SLV from 33 to 47, got out along with Janszen last week.

 

 

 

 

 

20smoney's picture

yes Janszen bought silver at $4.50-ish and sold all at $48-ish for something like an 11x gain.  His target for gold is $5000/oz.  Guy's track record is excellent as he bailed completely in stocks in 2000 and went gold/cash/treasuries and rode it for a decade.  is exciting treasuries and silver.  Holding gold which he says is a much more larger position than he had in silver.

HAL 9000's picture

Thanks much I hadn't seen his gold price target or had forgotten it. 

Johnny Lawrence's picture

I like Hussman a lot.  I respect any money manager who doesn't buy into the groupthink.

fiddler_on_the_roof's picture

Just sell your silver and move to Gold - you will get better peace of mind.

looks like JPM pumped silver to $50 and are now dumping it. Gold unmoved

because giants(CB's who are buyers) will not allow shorting of Gold.

 

I could be wrong, but heard silver going to 20's

Hephasteus's picture

Yep. The people who sell massivly more silver than they have are going to drive it down to the 20's. Lots of good troll traffic through here. This would be a good place to set up a troll shop. You could sell june 40 35 and 30 troll puts and june 45 50 and 60 troll trap calls.

fiddler_on_the_roof's picture

aahh. Now I am a troll heh ? Then you must be a JPM silver pumper.

Why do you think JPM removed all the silver shorts last year around oct 2010 - so that they can short it after pumping it.

Look at my posting here to see if I am a troll. Just convert your silver to Gold, that's all I say.

Bay of Pigs's picture

You obviously you don't know what JPM is doing by the sounds of it.

JPM a silver pumper? LMAO.

Bay of Pigs's picture

No, because I bought over ten years ago and haven't sold a thing.

You have trouble understanding "buy and hold" don't you?

tmosley's picture

Huffing paint thinner will do that to you.

topcallingtroll's picture

Newbie silver puke commencing in 3...2...1..

Math Man's picture

help -- is the SLV etf going to tank???

 

YES.  You should seriously consider selling your SLV or buying puts to hedge it.

 

 

Texas Gunslinger's picture

I'm not sure why everyone at ZeroHedge is so hostile towards you. Now you're proven right and everyone is even angrier with you!

????

You remind me of Gallileo and Copernicus, when they were persecuted for being RIGHT!

 

eisley79's picture

ROFL, yes, look how far silver has fallen, its all over.  US debts have been paid off, all derivatives settled, all corporate, state and muni debt paid, budget balanced, interest rates are stable.  the USD is going to SOAR.

SILVER HAS FALLEN

all the way back to...

http://www.kitco.com/LFgif/ag2011.gif

3 weeks ago...

 

i am getting tired of making Dangertime my btch, some other troll step up who wants to get slapped down, i welcome all challengers.

SilverRhino's picture

My big question for the members of this board.  I'm about to pull the trigger on another purchase.  

Just how far is this thing going to drop???  38? 35? 33?

Methman : fuck off and don't bother.  Your information is crap anyway.

Math Man's picture

It only costs five bucks to dig it out of the ground.

 

long juan silver's picture

Met man you top ticked it dude!

LudwigVon's picture

Yeah he called the top, sell at, what was it.... $34 ?

If thats the top I guess you might wanna set down that huffing habit for a minute...

akak's picture

How much does it cost to bury you IN the ground?

Johnny Lawrence's picture

I'd really wait until there's support.  Right now, it's in a free fall.  50-day MA on the July futures is 39.65. 

LudwigVon's picture

37.5 is a common level referenced, set buys there. Might not see that though, we dipped below 39 a lil ago and it came back up, its busy hitting its head on 39.75 now...

Now is a good time to add physical! Paper price is nicer and spreads will only get worse...

 

topcallingtroll's picture

Celebrate!

You are getting to buy cheaper silver!

101 years and counting's picture

where are you silver bugs buying your silver from?  APMEX?  is there a better option?

topcallingtroll's picture

I am not a silver bug.

I am more like a fair weather friend.

I always bought from golddealer.com
California Numismatics....best spreads i have found
free shipping and insurance.

espirit's picture

gainesvillecoins.com

Low premium.

ATM's picture

American Century sells bullion with a 1% mark up over spot. At least I know they sell gold like that, I think they sell silver.

Moe Howard's picture

I use Provident. APMEX is honest but higher ship & hand & premiums on ASEs.

I hear Gainsville is good too, but I have never used them.

Monarch is good for rough stuff and small lots. I have a 10 oz rough pour from them people like.

What does it all mean's picture

Buy on the dip...  same advice all the time!  LOSE MONEY!

 

All the silver bugs have been played...

 

Johnny Lawrence's picture

Yes, I was played.  I only made 70% in a few months.

Hephasteus's picture

Aren't you a big giant sucker. You willl be crying at the horrendous set up and sucker play. All the silver holders will fold and leave you hanging. You can't trust us.

topcallingtroll's picture

U r da bomb!

I always look.for your posts

What does it all mean's picture

So you sold?  Or waiting for it to go to 50%?

Johnny Lawrence's picture

Yes, I sold.  I still love the PMs on a fundamental level, but the chart looks very sick right now.  I'll look to get back in if there's support around the 50-day MA.