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Second Silver Margin Hike In One Week... Is Now Priced In

Tyler Durden's picture




 

As vaguely rumored earlier, and largely anticipated, the CME instituted another margin hike, presumably for a broad swath of commodities but apparently focusing on one particularly: silver, this time 10%. This is on top of the 9% margin hike from Monday. If anyone was wondering the reason for silver's swoon earlier (and subsequent jump) was, now it's clear. By now it is becoming rather clear that all the CME does is provide ever better reasons to BTFD. As always, we continue to hold our breath until there is a comparable maring hike for the ES. We may soon run out of oxygen.

cme 4.28

 

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Thu, 04/28/2011 - 20:08 | 1218462 mynhair
mynhair's picture

Margin this, assholes!  (upraised middle finger)

Half life is down to what,  2 hours?

Thu, 04/28/2011 - 20:13 | 1218486 Turd Ferguson
Turd Ferguson's picture

If that. They might as well go to 100% now and get it over with.

Thu, 04/28/2011 - 20:11 | 1218493 mynhair
mynhair's picture

No shit.  This is beyond ridiculous, Turd.

Thu, 04/28/2011 - 20:25 | 1218544 nope-1004
nope-1004's picture

Dip or no dip, I keep buying.  I don't really care anymore about these day-to-day gyrations.  The news coming out of this criminal syndicate and Benocide answering questions in tongues gives me ZERO confidence in this circus act.  As I acquire more fiat savings, I transfer it to silver.  Done and done.

C y'all on the other side.

\

 

Thu, 04/28/2011 - 20:39 | 1218600 mynhair
mynhair's picture

As no pawn shops are open this time of nite, I hope you mean you keep buying miners.

Thu, 04/28/2011 - 20:44 | 1218630 nope-1004
nope-1004's picture

Physical only.

Thu, 04/28/2011 - 21:00 | 1218666 apartofthings
apartofthings's picture

Agreed, price is no object, I buy when I go to the dealer, if price is up, fine. I pay that price.

And yes physical only -- stocks only if you want to speculate, by which I mean gamble, and there's nothing wrong with that if you're prepared to lose all your money.

Thu, 04/28/2011 - 21:09 | 1218701 Problem Is
Problem Is's picture

The Joy of Physical Silver -- <TING><TING>

Fri, 04/29/2011 - 03:33 | 1219445 Ratscam
Ratscam's picture

There is a financial product called JBSICA in Switzerland which is backed by 30kg bars of silver. The fund has a size of 600 Mio. USD. Out of curiousity I yesterday demanded physical delivery just to find out that I was the first person doing so.

Their gold fund roughly 1.8 bn USD only saw 8 redemptions of 12.5kg gold bars.

This seriously worries me!

 

Fri, 04/29/2011 - 05:10 | 1219506 Urban Redneck
Urban Redneck's picture

Why would anyone pay the higher redemption fees to Julius Baer on 1000 oz bars now?  It is  cheaper to pull 1000 oz silver bars from the Comex, while they still have them.  You go to Baer to collect physical or fiat profits once the Comex busts and the value of physical Ag soars.  I hold both the Ag-CHF and Au-USD funds, and I sleep fine at night. 

Fri, 04/29/2011 - 06:06 | 1219535 Ratscam
Ratscam's picture

When the Comex goes bust how easy do you think it is to get to any physical silver!

Careful, if you hold JB CHF AU they represent 12.5kg gold bars! No physical delivery unless your shares match roughly CHF 540K!

MGMT fee is 0.5% p.a. A bank vault costs you 100 chifs p.a. instead of the 2'700 MGMT fee

Silver I agree is a crazy idea, physical gold however I keep at various vaults, this is still the cheapest and safest method.

 

Fri, 04/29/2011 - 08:19 | 1219788 Urban Redneck
Urban Redneck's picture

The Baer prospectus is pretty straight forward, and I asked several friends at Baer if I was missing anything in my reading of it.  If Comex goes bust my holdings won't match exactly but as the fund has the physical- the paper should retain most of its value and there would probably be secondary market in small lot aggregation for the remainders.  The JB management fee is larger than I pay for rental of my bank boxes and safe insurance riders, but it's significantly less than what I would pay for Sprott or CFC paper, and it's simpler and cheaper than trading physical from my core PM position.  Plus, if the TSHF and I'm in Brazil or the US instead of Switzerland, it is a lot easier to get hold of a bank wire than a safe deposit box in Zurich.  

Fri, 04/29/2011 - 09:56 | 1220159 Ratscam
Ratscam's picture

Update! Because JBSICA is USD/CHF hedged I pay no redemption fees and VAT (which I can deduct ;). I should be getting 1024 ounces on Tuesday. So far it looks that it will take 4 days! (during normal times) to get a hand on my silver.

Fri, 04/29/2011 - 08:17 | 1219783 Canucklehead
Canucklehead's picture

Did you ever hear of the phrase "Banking Holiday"?  Do you know what FDR did when he took office? 

I hope you have the customer relations number for your Ag-CHF and Au-USD funds.  It would be important to be on a first name basis with those people as your plan calls for split second execution of your sell order moments before 4 or 5 other guys phone them with the same request.

If the Comex is about to go bust you should expect a banking holiday.  Why would the powers that be spend all your hard earned tax money in propping up the market, only to have it go down the toilet "when" the Comex goes bust.

Think of Julius Baer redemption fees as an insurance premium.

Fri, 04/29/2011 - 06:37 | 1219584 longorshort
longorshort's picture

Interesting, what is the minimum delivery size and costs with them.  Is their rules as screwed up as COMEX on sellback rules?

Fri, 04/29/2011 - 10:02 | 1220183 Ratscam
Ratscam's picture

delivery size of JBSICA is +/- 1000 ounces, due to ounce differences of the silver bars.

In gold and platinum standard bars are 12.5kg.

In Switzerland you pay 8% VAT on white metals, gold none.

Thu, 04/28/2011 - 22:15 | 1218913 Hugh G Rection
Hugh G Rection's picture

It's not gambling when you piggyback Turd's option plays ;-)

Thu, 04/28/2011 - 20:48 | 1218637 Montgomery Burns
Montgomery Burns's picture

I guess you've never been to Las Vegas.

Thu, 04/28/2011 - 21:01 | 1218658 Texas Gunslinger
Texas Gunslinger's picture

Can someone explain to me what a margin hike is, and why this is relevant to the silver eagles I bought last month? Can I assume that margin means "profit margin" and those people who sell silver are now allowed to make more money?

 

 

Thu, 04/28/2011 - 21:01 | 1218676 narapoiddyslexia
narapoiddyslexia's picture

You're the troll tmosley branded, aren't you? Go fuck yourself.

Thu, 04/28/2011 - 21:12 | 1218702 topcallingtroll
topcallingtroll's picture

Give him a break. He is buying silver.
He is on your side. Treat your allies with more respect.

Thu, 04/28/2011 - 21:15 | 1218718 tmosley
tmosley's picture

No, he isn't.  He's a caricature.  He has branded himself as the sole arbiter of God on Earth, and has denounced anyone who disagrees with his religobabble as a homosexual liberal blah blah blah.

And this was while talking to Col. Cooper.

Thu, 04/28/2011 - 21:13 | 1218713 Texas Gunslinger
Texas Gunslinger's picture

Who the hell are YOU?  WTF is "marapoiddyslexia"? If you've got it, perhaps you should put some creame on it. 

Why is everyone so damn rude and arrogant around here?

I don't know as much about economics, commodity trading or Wall Street as you guys, and I openly admit that.  I was referred to this site by my coin dealer, who told me this was the best information source on the internet - so I joined. I'm just here to learn, and you guys continually sling insults at me.

There was absolutely nothing in my post that was inflamatory, anti-silver or troll-like.  

Sorry if my questions aren't as brilliant as all you guys. Sorry I didn't get a chance to go to Harvard like everyone here. 

Tough crowd around here.  Maybe I should just act like I know everything. 

 

Thu, 04/28/2011 - 21:18 | 1218729 Hephasteus
Hephasteus's picture

Go fucking run through a sandblaster and jump in a vat of lemons and then roll around in salt and pepper spray.

Thu, 04/28/2011 - 21:27 | 1218758 Texas Gunslinger
Texas Gunslinger's picture

What the hell is Hephasteus? Why do you guys pick such large words for your avatar?  Maybe I should get a dictionary, find the largest, most bizzare word I can and hide behind it so everyone thinks I'm smart. Will you guys accept me then?

What is wrong with you people, and why are you so rude?

 

Thu, 04/28/2011 - 21:34 | 1218790 Big Corked Boots
Big Corked Boots's picture

http://www.justfuckinggoogleit.com/

You serve as a prime example of why New Yorkers dislike Texans.

Thu, 04/28/2011 - 21:51 | 1218840 Texas Gunslinger
Texas Gunslinger's picture

Well, I can tell you that my friends in Texas have absolutely no problem with New Yorkers. Great city, great people.  

It's a shame that you are so full of hatred to say something so rude about your fellow countrymen. You hate me because I live in a different state than you?  Pathetic. 

 

Thu, 04/28/2011 - 21:57 | 1218858 jm
jm's picture

Just ignore it and do your best to hang in.  ZH needs decent people.  It's to your credit that you ask for help.

Everybody is wrong at times in their lives, so just ignore the crap.

 

 

Thu, 04/28/2011 - 22:05 | 1218874 Burnbright
Burnbright's picture

Well Tex, I don't know what you said to get everyone so hot and tempered but a margin hike by the CME increases the cost of purchasing a silver contract for 5000 ounces of silver. See silver contracts are bought on margin, so they pay a much smaller fraction than the actual cost of 5000 ounces of silver, and the margin hike has to be covered if you own a contract. If you can't cover it I imagine you have to sell before it takes effect. I think currently its roughly a little over 12k to buy a 5000 ounce contract, this doesn't mean you can have it delivered for that price, just that you can trade the contract for that price, if you want delivery you have to have the rest of the cash in an account you purchased the contract with at options experation which is why you can usually see a right before as the shorts try to drive out the weak hands from collecting delivery.

Thu, 04/28/2011 - 22:08 | 1218889 cowdiddly
cowdiddly's picture

Just ignore the assholes and never compromise your principles my friend.

Thu, 04/28/2011 - 22:48 | 1219024 Dangertime
Dangertime's picture

That's the creed of the libtards TG......They do nothing but project.

The claim your guilt of a crime right before they commit the same heinous act.

Thu, 04/28/2011 - 23:06 | 1219060 akak
akak's picture

The troll giveth (dissention, dishonesty, division and diversion), and the troll taketh away (peaceful and honest, rational discourse).

Fri, 04/29/2011 - 08:32 | 1219826 Canucklehead
Canucklehead's picture

Tex, this website is everything in tmosley's life.  It's important to him (and others like him) to be seen as the "big dogs" even though they really don't know anything other than slogans.  If you want to see what I mean, pull up a few articles and search for tmosley (in your browser).  Within a few minutes you will get the flavor of the man.

The short answer is you ignore tmosley and his ilk.  It's a free world out there and unfortunately personal circumstances cause many people to be rude.

Keep asking your questions and use google at times to find answers.  The truly knowledgeable people here will answer you eventually.

Thu, 04/28/2011 - 23:04 | 1219085 DraginDickHedge
DraginDickHedge's picture

You are a total shit for brains no good idiot.  Gee, now I sound like you, but my IQ is twice yours as your's can't be above 70...Get a life and stop these vile posts!  You typify the national view of NY City, for sure.  Rude, self absorbed hate-mongers. 

Fri, 04/29/2011 - 03:13 | 1219425 strannick
strannick's picture

 

 

 

 

 

And why everyone despises NYers.

Thu, 04/28/2011 - 22:07 | 1218876 terryg999
terryg999's picture

Futures Commodities ( Gold, Silver, corn, wheat....  ) are bought on margin.  The set margin is the amount of money you have to have in your trading account to buy one contract of that commodity.

The margin for silver was raised $14513 per contract.  A contract of silver is 5000 ounces.

So, if you $14513 in your trading account you can buy one contract of silver ( buy in the hopes that the price of silver will rise - you can also sell if you feel the price of silver will fall ).  If the price of silver goes up $1 and you decide to sell to take profits you make $5000 and you now have $19513 in your trading account - less commissions.

Simplified, but basically it.

 

/fuck all these other assholes!

 

 

Fri, 04/29/2011 - 08:20 | 1219794 tarsubil
tarsubil's picture

Do I have this right? You need $14513 to buy a roughly $250,000 contract of 5000 oz of siver? That's roughly 6% and you are leveraged 1 to 16 roughly?

Thu, 04/28/2011 - 22:25 | 1218959 Hulk
Hulk's picture

"What is wrong with you people, and why are you so rude?:

We were un-loved in our youth...

Thu, 04/28/2011 - 22:51 | 1219045 A Nanny Moose
A Nanny Moose's picture

I call it post traumatic verbal stress disorder. It sets in after continually engaging trolls/astro turf-bots for so long in the anonymity of the cybersphere "battlefield" that one becomes numb to the feelings of others, and is only capable of a digital 1000 yard stare.

Fri, 04/29/2011 - 08:20 | 1219798 tarsubil
tarsubil's picture

I have this.

Thu, 04/28/2011 - 21:22 | 1218743 ncdirtdigger
ncdirtdigger's picture

Investopedia is a decent source for learning about margins and commodity trading accounts.

Thu, 04/28/2011 - 21:22 | 1218744 DavidPierre
DavidPierre's picture

remember...

jezuus h christ loves you!

Fri, 04/29/2011 - 09:57 | 1220167 GoinFawr
GoinFawr's picture

so goddamn much!

Thu, 04/28/2011 - 21:24 | 1218747 EscapeKey
EscapeKey's picture

Nah, just keep the religious argument to yourself, and stick to financials while you're here. Go elsewhere for your religious debates.

Thu, 04/28/2011 - 21:37 | 1218776 Texas Gunslinger
Texas Gunslinger's picture

Good advice!

I will never instigate a religious conversation ever again around here. Now I understand that it's one of the rules, and I simply didn't know it because I'm new. I absolutely regret that whole discussion, and if I could take it back I would. On the other hand, though, I will not allow someone to slander Jesus Christ.  I just can't let that go. 

Don't swear at Jesus, and I promise never to bring it up again.

So...that topic is done.

Let's move forward... 

 

Thu, 04/28/2011 - 22:22 | 1218952 akak
akak's picture

TG, I don't want to expand on anything extraneous here, but in the other thread today I at first took you for just a purposely antagonistic troll, then as somebody just feeding us a line for laughs --- but if neither are truly the case, then I want to apologize for my harshness towards you.

Thu, 04/28/2011 - 22:45 | 1219013 WonderDawg
WonderDawg's picture

That's called "contempt prior to investigation". You seem to make a habit of it, akak.

 

Thu, 04/28/2011 - 23:00 | 1219028 akak
akak's picture

Speaking of actual antagonizing trolls ....

Thu, 04/28/2011 - 23:00 | 1219073 WonderDawg
WonderDawg's picture

Thanks for making my point.

I'm not sure exactly what constitutes a "troll", but if it means popping off about shit you don't know about, I'd say that makes you one.

By the way, care to discuss the nature of the monetary system again? You do any reading up on it yet, or you still confused?

 

Thu, 04/28/2011 - 23:13 | 1219089 akak
akak's picture

Buzz off, you clueless idiotic troll.

Go pick fights with others vastly more knowledgeable than yourself elsewhere. Intellectual gnats like you are not worth the time or effort.

 

PS: Thanks for taking a big steaming dump on a sincere and honest gesture of reconciliation on my part towards TexasGunslinger over an earlier misunderstanding ---in which you were, curiously, in no way involved.  I am sure that your action in that regard does not go unnoticed by others here as well.

Thu, 04/28/2011 - 23:31 | 1219147 WonderDawg
WonderDawg's picture

If you hadn't popped off before you knew what you were talking about, you wouldn't have to constantly be apologizing to people. Here's a suggestion: read the person's entire post, and think it through, before you pop off. It must suck to be constantly wrong about people. But I give you credit, you did recognize your mistake and apologize. Shows a glimmer of character, so maybe there is hope.

Thu, 04/28/2011 - 23:32 | 1219156 WonderDawg
WonderDawg's picture

By the way, that's not me junking you. Not that you care, but it's not my style.

Thu, 04/28/2011 - 23:06 | 1219092 tmosley
tmosley's picture

7 weeks 6 days.

Fri, 04/29/2011 - 00:41 | 1219272 R Man J
R Man J's picture

Hey Texas,

You can learn a lot about precious metals at Turd's blog. And they are more tolerant of all religions there, and people are respectful enough to keep it real. www.tfmetalsreport.blogspot.com

Believe it or not people there won't excoriate you if they sense that you might believe in God.

Thu, 04/28/2011 - 21:27 | 1218756 augie
augie's picture

don't let the bullshit get you down brother.
http://www.investopedia.com/terms/b/buying-on-margin.asp

great resource i use it often.

I assume you understand the concept of margin, when a margin hike is initiated, the bank increase the amount of necessary capital within its customers accounts. So if i could buy 100 apples at 10 dollars with one dollar of my own money and the bank essentially lending me the other 9 dollars, when a margin hike happens the bank no longer lends that 9 dollars to me, they may only lend 8 or 7. In order for me to purchase those 100 apples for 10 dollars i would need to increase my investment from 1 dollar to say 2 or 3 or whatever the bank necessitates to meet the market price.

 

Hope this helps man, keep asking questions its the only way to learn.

 

feel free to flame me if i fucked this explination up.

Thu, 04/28/2011 - 23:15 | 1219111 DraginDickHedge
DraginDickHedge's picture

I used to recommend ZH to intellignet people who might be interested in non-maiinstream-media views of thes neverending insane market events of recent years.  I observed for a long time prior to joining and one could actually find intelligert and witty comments to issues. The intelligent people have mostly left ZH or just read the articles now ~ largely due to sub-humans with anger issues polluting the comment section.  Just read the articles Tyler posts...Ignore the idiots.  Many thanks to those below who answered your honest question.  ZH has lost its edge and its worth to people with IQ's over 90 who actually have relevant experience and knowledge because of these people vomiting out their hate speach to whomever and whatever...

Fri, 04/29/2011 - 00:55 | 1219299 redpill
redpill's picture

Well if it's such a let down now please fuck off and don't insult everyone else who enjoys it.

 

Fri, 04/29/2011 - 01:36 | 1219330 DraginDickHedge
DraginDickHedge's picture

Ahh yet another intelligent ZH post.  ZH is still my homepage.  Your comments usually are not as off topic as the uaual Troll bashers, Red Pill.  Why do they bother.  Make an intelligent counter point, ignore them, and let the topic discussion go on, but stop the juvinelle junior high level rants.  I see yopur point, Red Pill, but honestly, don't you think the site has been hijacked by sub-literate bashers of late?  Perhaps the hijack will continue unless others stop them and call them out.

Fri, 04/29/2011 - 02:01 | 1219340 akak
akak's picture

A minimal amount of moderation would handily deal with the problem, common to ANY online forum, of purposely antagonistic and instigatory trolls.  Lacking that, it is naive to expect them to just disappear, and although you might blame me for taking on the trolls and not allowing them to endlessly propagate their disinformation and lies, I share your concerns, as I have seen several online forums utterly destroyed by trolling.  If some measure of moderation cannot be instituted here, I predict the same eventual outcome here on ZeroHedge as well. 

Your suggestions to "just ignore" them patently does NOT work --- I have seen it tried before, with disastrous results; it only enrages them and eggs them on to further heights of insanity.  The situation is analogous to setting up a perfect garden, and then expecting it to stay that way forever, with no weeding or other maintanance. It's basic physics, actually: the entropy ("disorder") of any system always tends to increase over time, unless energy is added to the system to fight that disorder or decrease it.  What energy is being added to this system to minimize or decrease its entropy, other than that of posters such as myself?

I am not criticizing Tyler here, merely stating a fact: any forum with zero moderation inevitably destroys itself, or is at least reduced to a just a shadow of its former self.

Fri, 04/29/2011 - 02:41 | 1219394 augie
augie's picture

Is regulation really the answer? why not just make the Captcha a cashflow question having to use npv's or a dividend growth model question...

 

In all honesty i think the more people who entertain these childish arguments the more we will have. All of us, myself included need to just let shit go.

Fri, 04/29/2011 - 03:16 | 1219432 akak
akak's picture

I actually really like your idea about enhancing the Captcha to reflect some level of knowledge other than 34 + -45 = X.  Although, I can see how such a system might be very difficult to establish ---- computers are not known for their language interpretive skills --- and a determined troll (as some of these truly are) could still probably get past any such system, unless it were so involved and advanced that it would essentially be impossible to set up in the first place.

Maybe they just need to reduce the number of junks that any post receives from 51 down to, say, 20?  Only the most egregious trolls almost ever get that many, and it might better allow us to self-police.  The problem there, of course, is that posts could be eliminated for merely being unpopular, rather than for being truly divisive or antagonistic.

 

Fri, 04/29/2011 - 07:44 | 1219698 augie
augie's picture

i never considered the language barrier for computers so i guess we can scratch that one off. I think you're on to something with the number of "junks." If we could implement a reputation points system (like other forums) where posters give each other positive points given the merit of their posts (capitalism at work is a beautiful thing) and have the same weight applied for positive reputation as "junks," I think those who have been around ZH a lot longer than me would be able to rule out the need for moderators or even a CAPATCHA.

 

forgive me if this is unclear i'm working on three hours of sleep.

Fri, 04/29/2011 - 03:20 | 1219436 OldPhart
OldPhart's picture

Man, I don't do those calcs every day...I'd be digging through old textbooks and would still come up wrong.

Fri, 04/29/2011 - 03:46 | 1219454 DraginDickHedge
DraginDickHedge's picture

Well said, akak, although I disagree I understand your thinking.  I failed at ignoring the trolls and the troll bashers who often incorrectly ID honest posters as trolls.  IMHO, It is the troll bashers who have ruined ZH the most.  What is your definition of a Troll? It seems as though there is a group of you people competing for some weird recognition for calling out trolls.  Why?  Even a group set out to opine differently than the ZH Sheeple talking points [I admit, I think like a ZH Sheeple minus the bashing] are less harmful than the basher posts.  I think  anyone who deviates from the subject and starts personal rants against other posters does not server to protect a site they vomit on it by hijacking it off topic and getting personal.  Who cares if RoboTrader or Harry get a charge out of yanking our chains?  Let that stuff go.  The rest of us aren't stupid you know.  It isn't necessary for you to call out anyone, is it?   I do admit to doing what I hate in this thread tonight as I am just fed up.  Sorry.

Fri, 04/29/2011 - 04:25 | 1219473 akak
akak's picture

I appreciate your concerns and opinions, DDH, and your posts are certainly food for thought.  As much as I have allowed myself at times to get sidetracked by those whom I would designate as "trolls", I always feel soiled and unhappy with myself afterward, and truly wish there were some magic formula to rid these online forums of unwelcome and malicious interlopers.

What is a "troll"?  I would define that as a person who engages in either one or both kinds of particular activity, one rather obvious and one less so.  The first kind would be purposeful and needless antagonism, frequently of a personal nature, although often also manifested by shallowly and repetitively attacking a shared group meme or shared identity or belief --- the former poster "JohnnyBravo", aka "MasterBates", fell into this category. 

The second sort, more difficult to judge, are those who willfully spread or repeat half-truths, lies or disinformation, almost always I have noticed in defense of the financial and political establishment, and against the ideas of reform, honesty, transparency or any other concept or movement which challenges the financial and political elite and the status-quo financial, political and monetary systems.  These can be harder to notice, as their campaigns of subversion can sometimes only be spotted after a fair amount of posting on their parts, but they also frequently give themselves away by the sheer overwhelming frequency of their comments, combined with being utterly impervious to all rebuttals, counterfacts or debate, resulting in them engaging in what can be an almost mindless repetitive drone of the exact same information, sometimes constituting a virtual blizzard of distracting and diverting comments that can utterly destroy any meaningful discourse over the topic at hand.  This used to very often be the case when the discussion involved gold, although lately, surprise surprise, it seems to be focused more on silver.

In any case, I have no doubt, none whatsoever, that there ARE certain posters here whose intent and involvement here is purely malicious, and intended to disrupt and divert conversation or debate over certain topics.  I have seen the exact same pattern in other, unrelated online forums, and the topics which really seem to bring the dedicated disinformation agents out of the woodwork are 1) gold (and lately silver), 2) the potential collapse of the US dollar and US financial system, and 3) meaningful challenges, and challengers, to the US political status-quo.  I will leave it to you and others to speculate on just why these three topics are the targets of such determined forum attacks.

Fri, 04/29/2011 - 15:42 | 1221872 DraginDickHedge
DraginDickHedge's picture

Akak...Thank you for the time you took to thoughtfully and intelligently reply to my concerns and for not junking my crabby-fed-up off topic posts in this thread.  Even prior to your response, as I scan through comments trying to avoid the muck, I have always stopped to read your thoughts which largely addvalue to the issue at hand.  I agree that there are concerted attack groups who coordinate hi-jack attacks on various sites.  Most provide their zombie followers specific talking points which they all use.  Last New Years day the open ZH thread was alarmingly divertred to bizarre Jew Bashing to a degree exceeding the most foul ZH posters on a bad day.  I Googled some phrases and saw they were attacking other sites using various avatars, but word for word spewed the same ligurgy.  Due to concerted or even lone wolf attacks, ZH threads do get diverterd off issue to the detriment of all demeaning its "brand" respect and value.  Unfortunately, many committed ZH posters have started to junk any dissent...even dissent on topic.  Dissent is a good thing and often amusing like RT and others...even spwaning loyal ZH's to create dopplegangers...fun!  The "Junk" choice is meaningless.  I suggest a -5 to +5 scale and another "oink" scale to select "Doesn't add to discussion or Off topic to [1] to hatemonger or "Swill Spewing Basher [5].  I am sure you could come up with more creative scale descriptions...Be well. 

Fri, 04/29/2011 - 16:10 | 1221962 akak
akak's picture

I thank you, DDH, for taking the time to reply --- I was hoping to find that you had.

Your idea of adding a +5 to -5 kind of scale here is a relatively simple but a good one I think, and one that I have seen on other forums used to good effect.  Instead of merely accumulating a number of negative votes, it actually allows a given comment (or user) to garner a net good/bad score, and would much better allow those egregiously trollish posts to be junked into disappearing, while also allowing posts which at least some posters find valuable to remain.  That is the real challenge: how to allow the overall forum membership to get rid of truly unwanted comments, while not being overharsh in possibly eliminating honest and sincere, but unpopular, comments as well.

Fri, 04/29/2011 - 08:26 | 1219812 tarsubil
tarsubil's picture

Don't highly junked posts get torpedoed? Why not just lower the threshold?

Fri, 04/29/2011 - 03:17 | 1219433 ZFiNX
ZFiNX's picture

You're just receiving the standard bit of hazing, you are a bit naive since you don't recognize that, perhaps you should have read through a few comments sections like I did.

Thu, 04/28/2011 - 22:22 | 1218942 Hugh G Rection
Hugh G Rection's picture

tmosley gets credit for calling him out??  

 

I was on his shit after his first post yesterday.

 

As for the definition of a margin slinger, It's that space between your cheeks that Dirty Mike and the boys use as a communal cum dumpster.  Your inflamed baboon asshole with hanging meat curtains need to be dragged off in shame again, as you retire to your mother's basement in search of another trolling identity.  Have fun crying yourself to sleep again tonight punk ass.

Thu, 04/28/2011 - 23:04 | 1219086 Texas Gunslinger
Texas Gunslinger's picture

Wow.

I feel like I just stumbled into the most hateful, evil place on earth.  

Thu, 04/28/2011 - 23:11 | 1219101 tmosley
tmosley's picture

Perhaps.  Sounds like a good reason to never come back.  That is, unless you want to be corrupted and go to hell with all of us liberal faggots.

Fri, 04/29/2011 - 00:27 | 1219257 Hephasteus
Hephasteus's picture

Hey give the guy a break.

He just googled how do i feed my dog if dogfood is 25 percent higher and this is the first place that popped up on search.

Fri, 04/29/2011 - 01:40 | 1219334 DraginDickHedge
DraginDickHedge's picture

tmosley...You and the others bashing this guy from texas make this less intelligent site.  Lowest of the low.

Fri, 04/29/2011 - 00:41 | 1219282 Rick64
Rick64's picture

Good thing Cheeky Bastard isn't around, you would probably think you were in hell. BTW I miss his comments .

Fri, 04/29/2011 - 01:56 | 1219346 DraginDickHedge
DraginDickHedge's picture

Well Gunslinger...you've met the usual self proclaimed liberal hate mongers who never stay on point and live here to dirty the site and love to spew personal jibes.  They are vocal, but as you've seen they get junked a lot and others have taken the time to answer your initial question.   Don't get them started on any religious concern...just casting pearls before swine.

Fri, 04/29/2011 - 02:18 | 1219368 Bay of Pigs
Bay of Pigs's picture

That isn't what he wrote at all. Go back and read his initial post. You're wrong.

Thu, 04/28/2011 - 23:08 | 1219099 tmosley
tmosley's picture

That's true, he did.  I thought he was just some old guy who was new to the whole "internet" thing, but it is quite clear that he is here to discredit the good people here by ingratiating himself by talking nicely about silver and then going full Christ-tard on random people.

Thu, 04/28/2011 - 21:07 | 1218693 topcallingtroll
topcallingtroll's picture

Dude sounds like you are interested in learning about commodities trading. Too much to post in a single answer. Google comex and futures trading and there will be some good introductory texts to help you on your journey.

Thu, 04/28/2011 - 21:40 | 1218808 gunsmoke011
gunsmoke011's picture

If he is indeed interested in learning to trade commodities - given the question asked - I would agree -- he needs to do a LOT of reading before he dabbles. If he doesn't - he won't be trading for very long - the criminals will eat his fleash and leave the carcus in a matter of minutes.

Thu, 04/28/2011 - 21:16 | 1218721 Bridgekeeper
Bridgekeeper's picture

A margin is the percentage of the total value that you have to transfer in order to get that option.

It allows you to leverage your purchasing power.  If you had to purchase 5,000 troy ounces of silver, paying market rates, that would be the spot price times 5000; right now that would be USD 48.34 x 5000 = 241,700 dollars.  On the other hand, if the margin is, say, 10%, then you can buy an option, paying the prescribed fee for the option, plus the margin, (in this case, $24,170) and have the ability to exercise that option, and buy the silver at the option price later on.  If the price of the silver goes up, you can sell the option to somebody else, reaping (most of) the profit from the rise in silver prices.

 This is all fine and dandy as long as the price goes up, but if it doesn't, for example if somebody dumps a bunch of silver, or paper purporting to represent actual silver, into the market, the price can go down, and you can lose your whole investment if the price declines enough.  Leverage works both ways.

What the Exchange has done is to increase the percentage that an option buyer has to pay to buy the option.  This decreases the profit potential for the trader, and the argument is that this reduces market volatility.  The problem is that there are some 'sellers' who are promising to deliver silver that they do not, in fact, presently possess, and as long as this is allowed, market volatility will continue.

There's a lot more to this than I've outlined, and I'm sure somebody else can do better in explaining, but I think this is a start.

Thu, 04/28/2011 - 21:43 | 1218818 Texas Gunslinger
Texas Gunslinger's picture

Thank you for a thoughtful answer without insulting me!  To be honest, I'm not sure that I fully understand it, but it is much clearer now than before. So more margin hikes means that buyers have to put up more money to buy the options, which, in turn, reduces buying pressure in the market and helps those that are short.  Right?

 

Thu, 04/28/2011 - 21:56 | 1218850 YouBetYourLife
YouBetYourLife's picture

Yes, that's pretty much it.

Margin requirements have nothing to do with people who buy physical PMs; it only comes into play when you buy options to buy PMs.  You can buy more options if you have to put less of a percentage of the option price "down" on the purchase (the "margin").  The rest of the price is financed by the broker.

The reverse is also true.  The higher the margin rates, the more you have to put down, and therefore (supposedly) the less speculation takes place. That's why commodities exchanges raise margin rates on a commodity when they feel it's overheating due to an excessive amount of speculation.

By the way, welcome to ZH.   

Fri, 04/29/2011 - 08:33 | 1219834 bud-wiser
bud-wiser's picture

I beleve also margin has a correlation with the price of said commidity. As silver goes to all time highs margin will be raised.

 

 

Fri, 04/29/2011 - 10:28 | 1220226 GoinFawr
GoinFawr's picture

Well, depending on who is net long or short, anyway. (See:Cu).

Keep in mind the small specs actually have to earn their margin requirements, as opposed to those who have the issuer of FRN's in their pockets. Though these hikes are so predictable these days they are taking fewer and fewer by surprise, much to the chagrin of some.

Thu, 04/28/2011 - 22:27 | 1218962 Hugh G Rection
Hugh G Rection's picture

don't feed the trolls

Thu, 04/28/2011 - 22:46 | 1219018 YouBetYourLife
YouBetYourLife's picture

But they're kinda vulnerable and cute.

Thu, 04/28/2011 - 23:03 | 1219078 Hephasteus
Hephasteus's picture

Watch it. That's exactly the game he's playing.

 

Fri, 04/29/2011 - 01:47 | 1219337 DraginDickHedge
DraginDickHedge's picture

Ah, yes Huge...Can't you just stay on point?  Why feed the people who vomit out personal hate bombs and dirty the site.   Geesh, how does all the bashing move the discussion forward? 

Fri, 04/29/2011 - 06:23 | 1219565 Bridgekeeper
Bridgekeeper's picture

Yes.  I'm glad that my untutored explanation was of help.

The problem with this approach in this particular instance is that the market is being corrupted by the massive unbacked (or 'naked') shorts that some few players have apparently been injecting into the market.  There has been a lot of speculation as to why such large shorts in the face of a rising trend in the silver price  (not to mention an apparent shortage of physical silver!) are a prudent move for such large entities;  to date I have read nothing conclusive on this. There is a strong sentiment among some that these increases in margins are another mechanism being used to suppress and restrain the market price of silver.  There's  support for that idea, but I don't know enough yet to come to a conclusion. 

Like you, I'm here to learn, as I don't know enough about commodities and options trading to be comfortable risking my cash in this market, where nothing is what it seems to be.  To quote Bismark, I prefer to learn from the mistakes of others.

Thu, 04/28/2011 - 21:49 | 1218831 akak
akak's picture

Bridgekeeper,

I understand the bare-bones basics of margin requirements as you have explained them (and done so excellently, I might add), but what I do NOT understand is why they are set in nominal dollar amounts, demanding frequent adjustments, instead of as just a percentage of the spot price of the commodity being traded?  Would that not be a vastly simpler and more transparent system?

Thu, 04/28/2011 - 22:38 | 1219000 RockyRacoon
RockyRacoon's picture

 

That would be an all out admission that they are trying to stifle the trades.  At least doing nominal amounts deflects attention from the real purpose... sorta.

Thu, 04/28/2011 - 22:53 | 1219046 akak
akak's picture

Well, Rocky, what I actually meant was setting the margin requirements at a fixed percentage of the spot price --- that way, they would not really need to be constantly tinkered with and adjusted, would they?  Correct me if I am wrong, but it is my impression that margin requirements are mainly only adjusted (raised) to keep pace with a rising spot price, and only in the most extreme of cases ever raised due to volatility in and of itself, is that correct?

Thu, 04/28/2011 - 23:01 | 1219067 RockyRacoon
RockyRacoon's picture

 

I know what you meant but the idea of a fixed nominal amount removes the link from "price" directly.  Less obvious sweating is seen by the traders that way.

At any rate, I'm tapped out for insight since I do not deal in paper anyhow.  I buy/sell the real thing.   Margins are not one of my problems.

Fri, 04/29/2011 - 05:27 | 1219514 Urban Redneck
Urban Redneck's picture

If you are a producer or consumer of the commodity- it is desirable that the carrying cost of your hedge is fixed.  For example, the farmer knows it will cost a fixed $5000 to hedge the next seasons crop and budget for it at planting time, and theoretically doesn't have to have additional reserves against probable margin calls.  If the margin requirement is a fixed percentage of the cost, then the farmer's carrying cost of the hedge fluctuates with the price of the product, defeating the purpose of the hedge, reducing the ROI of the entire farming venture- since non-deployed capital is required to prevent hedge liquidation in the event of a margin call, and tilting the market more towards pure speculation. 

Thu, 04/28/2011 - 23:30 | 1219151 DraginDickHedge
DraginDickHedge's picture

Gunslinger...Be sure to tell your coin dealer to NEVER recommend ZH to anyone ever again.  Tyler does popst the best of the best articles with intelligent satire and wit...but the nature of the comment section is below gutter level of late and getting worse. I've had to apoligize to many who I recommended view the site...sad that the Hateres have taken over...ignore them or follow the people who educate whether you are in their camp or not.  There are still some here who educate and provide interesting perspectives...getting fewer by the minute, it seems...

Fri, 04/29/2011 - 00:32 | 1219262 Hugh G Rection
Hugh G Rection's picture

For the love of God he's a troll you dolt! Click his name, track, and read his posts. Maybe you feel bad for dangertime after his SLV shorts put him out on the street turning tricks for Ag fractionals...

Fri, 04/29/2011 - 00:53 | 1219293 Hephasteus
Hephasteus's picture

He's either a secondary profiler providing wingman support for dangertime or he's dangertime providing his own support.

http://www.youtube.com/watch?v=7rjoI7-esOw

The problem with it is they can't approach us with any sort of sensitivity because we are so varied in our backgrounds ranging from science/engineering, biology, psychology, astrology, financial, etc etc. So we have no manipulatable dynamic. We just can't be herded. We don't drool for each others approval and just allow ourselves to disagree about some things cause it really isn't important. So they've tried prison bitching us and now they are taking the helpless defensless looking for information route.

Though it's more likely this guy isn't dangertime but they come from the same shithole.

Fri, 04/29/2011 - 03:50 | 1219458 LudwigVon
LudwigVon's picture

LOL, clue in

Fri, 04/29/2011 - 00:34 | 1219268 Hephasteus
Hephasteus's picture

Finally we're pulling a good volume of trolls and facilitators with from the make an account during similar days list.

So let's achieve some consensus.

BTW I've had to apoligize to many people who have used your mind fuck services. I didn't recommend them to you. You just came after them out of nowhere.

 

Fri, 04/29/2011 - 03:11 | 1219427 OldPhart
OldPhart's picture

Since I'm relatively new, pretty much a dumb-ass, too, and have no knowledge of trolling activity (not too sure what it means either).  Margin is a sort of a fee charged to place a bet on futures.

I don't know much more than that.  I buy physical, for near immediate delivery (depending on when it gets here from the vendor) and toss it into my drawer with the rest of the stash.

You now have all the benefit of my knowledge.  Good luck and don't fuck it up.

 

Fri, 04/29/2011 - 04:25 | 1219479 StychoKiller
StychoKiller's picture

Buying on margin is similar to a lay-away plan, you don't pay for the item(s) in full until you pick it up.

Thu, 04/28/2011 - 21:14 | 1218715 rocker
rocker's picture

People gamble away Grandma's, Wife's and even Bride to be's diamond chip just to play everyday.

The bride will cry.  But the PM's are going up.  Sure, we have corrections. Actually, the sooner the better.

But don't bet that this is over or your a looser.  Bernanke has the put in.  Hi Ho, Hi Ho, Up We Go.

Fri, 04/29/2011 - 00:12 | 1219229 strannick
strannick's picture

Miners yet to price in silver thats not $20 an ounce and are therefore ready to roar.

SVL (Silvercrest) can be gotten for the price of its bought deal financing announced 2 days ago.

Fri, 04/29/2011 - 02:05 | 1219361 akak
akak's picture

I sure hope so Strannick --- they've been DOGS the lot of them lately!

Fri, 04/29/2011 - 03:23 | 1219437 strannick
strannick's picture

 

 

A.K. in AK.!

Mangy mutts is right, though FR.WT.B was my Lassie returning with a pot of gold.

Seems the strand is forgetting two central ZH tenets.

1. Dont feed the trolls (when you stare into the troll abyss, ...)

2. S_I_L_V_E_R B_I_T_C_H_E_Z!!!

Fri, 04/29/2011 - 03:35 | 1219444 akak
akak's picture

Good seeing you again S! 

Do you ever still hang out over in the Kitco gulag?
I was "banned for life", you know --- I still cry every night over it too!

I guess I have failed on the first count, regarding the trolls --- it's like dealing with RStones199 all over again, or having to tangle with that slippery snake Nadler and all his disingenuous BS and disinformation.  It just fires up my Polish blood and sense of justice!  Mea culpa, mea culpa, mea maxima culpa.

So when does SLW start to move again, or the rest of them, and more importantly, WHY have they stopped moving? (except downward!)  It's like for every two steps forward silver takes, they take only one step forward, and for every one step backward silver takes, they take two.  It's a conspiracy, I tell ya!

Thu, 04/28/2011 - 20:43 | 1218613 Idiot Savant
Idiot Savant's picture

and Benocide answering questions in tongues..

Lmao - the elite is getting really good with word play. I was particularly fond of our involvement in Libya being called a "kinetic action".

Thu, 04/28/2011 - 21:33 | 1218778 Zero Govt
Zero Govt's picture

yes we've got management-speak dribble (snake oil) coming out of every orifice of Govt haven't we... was wondering how soon they'd take to change 'declaring War' to 'kenetic action'... killing your own troops is 'friendly fire' (how is fire ever friendly precisely?) and murdering innocent civilians is 'colateral damage'

i'd like to facially manicure (ram a jackhammer into the eye sockets) of the sociopaths that invent these insidious evil words and those that use them 

Thu, 04/28/2011 - 22:51 | 1219035 YouBetYourLife
YouBetYourLife's picture

Seems like a redundancy.  What's the opposite - a "static action"? 

Thu, 04/28/2011 - 22:52 | 1219050 WonderDawg
WonderDawg's picture

My favorite is "regulatory capture". Almost sounds like a game.

Call it what it is, for fuck's sake. The banks own the guys who are supposed to be watching them. In a word: corruption.

Thu, 04/28/2011 - 23:34 | 1219163 Campagnolo
Campagnolo's picture

yup...dont even care about Comex-Bernanke-Government doing that, this....all I know is this: after summer Silver and Gold will go parabolic through 2012.

Thu, 04/28/2011 - 20:14 | 1218505 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

What about this from Harvey Organ...?

"Before beginning, Adrian Douglas of GATA and Market Force Analysis has just commented that the options exercised in gold for the month of May totalled an astronomical 18,366 or 1.8366 million oz of gold. In silver he announced that 21,721 contracts or 108 million oz of silver were exercised.

If this is true, either Blythe asks the Fed to start printing massive dollars or the Comex goes belly-up.
I am in the process of verifying this and I will inform you.  If true this is a major development."

Thu, 04/28/2011 - 20:33 | 1218580 FastBoat
FastBoat's picture

"either Blythe asks the Fed to start printing massive dollars or the Comex goes belly-up."  I'm pretty sure no one needs to ask the Fed to massively print dollars.

Thu, 04/28/2011 - 21:17 | 1218707 Problem Is
Problem Is's picture

The Bernank: "Quick Robin! To the Bat-Copter!"

Robin "Timmay" Jeethner: "Holy Fed Note Copter drop!"

Thu, 04/28/2011 - 21:36 | 1218786 DavidPierre
DavidPierre's picture

2,499 ozs deposited in the dealers (registered) category
322 ozs withdrawn from the customer (eligible) category
Total dealer inventory 1.83 Mozs
Total customer inventory 9.20 Mozs
Combined Total 11.03 Mozs
There were paltry movements of gold in and out of the warehouse but 148 kozs of gold were transferred from the dealer inventory to the customer inventory by an internal adjustment.

In silver 0.1 Mozs were withdrawn from the customer inventory. There was a massive 2.4 Mozs transferred from the dealer inventory to the customer inventory by an internal adjustment.

There are 26,890 contracts still open for MAY with first notice day on Friday!

There were 191 delivery notices issued in the APR gold contract. The APR gold delivery notice total for the month is 3,884 notices or 388,400 ozs.

There were 81 delivery notices issued in the APR silver contract. The APR silver delivery notice total for the month is 312 or 1.58 Mozs.

The OI in APR silver stands at 110 contracts (an INCREASE of 31) while in gold it stands at 382 contracts. The potential gold delivery for the month is 426,600 ozs or 22% of the registered inventory.

In a stunning development yesterday 18,366 MAY GOLD CALL options were EXERCISED for futures contracts and 21,721 MAY SILVER CALL options were EXERCISED for futures.

If these are not settled in a backroom cash deal for large premiums a default is looming!
Cheers
Adrian

www.lemetropolecafe.com

Thu, 04/28/2011 - 22:58 | 1219057 YouBetYourLife
YouBetYourLife's picture

I hope it plays out.  We've been waiting for this for months.

And usually, those seeking delivery get bought off by Blythe with hefty premiums. If there is a sufficient amount of buyers who insist upon actual delivery, COMEX will crash and the scam will be ended.

 

Fri, 04/29/2011 - 01:17 | 1219321 T1000
T1000's picture

You forgot to pay the comex bill! Blythe, do you realize what you've done! 

 

http://youtu.be/LZi2ZlHbMGs 

This is getting more hilarious by the day. 

Thu, 04/28/2011 - 20:23 | 1218531 Long-John-Silver
Long-John-Silver's picture

Hell yes MF's. 100% pay to play. You lose-you die.

Thu, 04/28/2011 - 20:27 | 1218553 mynhair
mynhair's picture

Margin suks anyway.  Just more vig to some scum bank.  Never used leverage outside of RE.

Thu, 04/28/2011 - 21:01 | 1218675 Texas Gunslinger
Texas Gunslinger's picture

Absolutely.  More margin means more profits for the banks! I think. 

Thu, 04/28/2011 - 22:44 | 1219019 RockyRacoon
RockyRacoon's picture

It appears that you have quite a fan base.

Fri, 04/29/2011 - 01:15 | 1219320 T1000
T1000's picture

Do you hear that?? It...yeah, yeah, it sounds just like a sock puppet. 

Get 'r done, Texan! 

Thu, 04/28/2011 - 21:14 | 1218706 apartofthings
apartofthings's picture

Agreed, it's one more way to cheat you out of your money. A leveraged hand is a weak hand.

Thu, 04/28/2011 - 21:55 | 1218851 ChookChoker
ChookChoker's picture

CME margin hikes make sense to me. The margins are set at dollar figures, not percentages. If the margins stayed fixed and the commodity price increased, risk of investing would lower. With the way silver is powering ahead in price (and interest) at the moment, if they it would be criminal if they didnt raise margin requirements accordingly.

What would be interesting would be a chart of margin requrements vs parcel price. In the case of silver, the contracts are for 5000 ounces. At the moment 5000 oz of silver has a value of around $240,000. The margin requirement is $14,513 initial (6%) and $10,750 maintenance (4.45%). I would like to see if the margin percentages change significantly over time.

Fri, 04/29/2011 - 00:46 | 1219285 adeptish
adeptish's picture

+++

btw, love the handle, only the Aussies here would get it, lol...

Thu, 04/28/2011 - 23:44 | 1219179 Math Man
Fri, 04/29/2011 - 00:13 | 1219206 Texas Gunslinger
Texas Gunslinger's picture

Just another Wall Street moron who thinks silver is in a bubble. I wonder what this guy's track record is like?  Anyone heard of him or know his history? This is why I closed my account with Morgan Stanley in 2008, and manage my own damn money. Who the hell would sell silver for paper?  Fucking dumb!

My coin dealer has a price target of $115. Even if he is wrong by 25%, that is still a double from here.

 

Fri, 04/29/2011 - 00:19 | 1219245 nope-1004
nope-1004's picture

You need to use Google before you post.  If you don't know who Eric Sprott is, google the name before wasting space here.

I'm not trying to come down on you or pass judgement about your Christian faith here, but you are making judgements about others that are 100% innacurate.  Maybe that's why others have come down on you so hard.  Please google Eric Sprott or Sprott Asset Management before saying he's an idiot.  He bought gold with both feet in 2001 and is not a moron.

Save the moron calling for when you know someone truly is.... like Meth Head who posted it.

 

Fri, 04/29/2011 - 02:06 | 1219360 Burnbright
Burnbright's picture

If you read the article you would realize that he was just baiting people, in the article the author describes how Sprott is selling his shares of PSLV to buy physical metal to increase his silver holdings. That is all.

Fri, 04/29/2011 - 08:20 | 1219782 Math Man
Math Man's picture

The article says he's "probably" selling PSLV to buy bullion.  But there is no proof.

 

Only fact is that based on the most recent SEC filings, Sprott sold over 1.1mm shares of PSLV for his funds, and most of it on April 21st.

 

Which is the same day the PSLV dramatically underperformed the silver price.

 

The fact of the matter is that Sprott, one of the most vocal and biggest bulls out there, is now a seller.

Fri, 04/29/2011 - 11:05 | 1220395 GoinFawr
GoinFawr's picture

`The fact of the matter is that Sprott, one of the most vocal and biggest bulls out there, is now a seller...` of PSLV, likely to buy more bullion.
Fixed it for ya (and KiddyD the SLV/JapeyMoreGun schnorrer)

OTOH I highly doubt many would begrudge the sale if he simply wanted to use the proceeds to buy his baby a new set of wheels.

Yikes MethMom, Ag 48.73 US bitz and bytes, you must be in tears, tearing your hair out, or both.

Fri, 04/29/2011 - 05:35 | 1219521 Vlad Tepid
Vlad Tepid's picture

Tex, I just stumbled into this whole maelstrom you stirred up and was feeling a little bad for you but...buddy, do a little reading first.  Who is Eric Sprott and what is his track record like?  It's a little like coming to a Bible study and in the middle asking "Who's this Paul fellow you're all so keen on?"  I agree with above advice - Google or read a bit more ZH.  Two more points. Never feed the troll known as Math Man.  He's a rare creature nowadays and we hope to bait him out only for our own amusement.  "$5 to dig out of the ground" still has us in stiches.  Finally, pious Christianity and foul-mouthed <Quote:  Fucking> swearing make strange and hypocritical bedfellows.  If you want to convince the more skeptical of us that you are not a troll do not act like one and stay consistent.

Fri, 04/29/2011 - 07:21 | 1219661 Bendromeda Strain
Bendromeda Strain's picture

I am persuaded that this fellow is a sock puppet, which ZH allows for and ignores in true Fight Club tradition. Heck, it might even be Ruprecht himself doing a little rope-a-dope for his mistress's amusement (!)

Fri, 04/29/2011 - 02:41 | 1219392 Teamtc321
Teamtc321's picture

Where you been Meth> We have been missing you on the up tick.

Fri, 04/29/2011 - 03:30 | 1219446 strannick
strannick's picture

Or just selling PSLV to pocket the premium sos to buy more silver sans that premium. Guess you forgot to mention that section of the article??

Fri, 04/29/2011 - 08:22 | 1219793 Math Man
Math Man's picture

Which begs the questions of why ANYONE would own PSLV.... 

The fund's manager even thinks the premium is too high.

Fri, 04/29/2011 - 11:16 | 1220549 GoinFawr
GoinFawr's picture

Careful MethMom, you almost made sense there. Physical is definitely the best way to go, most here will agree.

But if you are gonna buy paper, you want to buy paper actually backed by physical (rather than a license to shoot yourself in the face-like some might argue SLV is), and it may be worth a premium to you to have peace of mind that way.

Fri, 04/29/2011 - 16:28 | 1222010 GoinFawr
GoinFawr's picture

"I couldn't possible be stupid enough to fall for another bubble. I've already lost my life's saving on the internet bubble and an overpriced condo. I'm smarter now. This time is different. I'll totally be able to call the top. The 100% run in six months is just the beginning! I can't lose."

hahahaha! WB MethMom, remember writing that last month? Thanks for playing the wrong side to the trade, at least you made yourself useful to me. Best hold on tight to that pic or 'your' Ferrari, it's probably as close as you're going to get to driving one!

Thu, 04/28/2011 - 20:15 | 1218501 Ergo
Ergo's picture

I got my blood pressure up and logged in ... to see ... the same price as when I left.  huh. 

I expect some raids tonight or in the morning.  But maybe someone smarter than me can shed light on the reasons for the nonevent - so far.

Thu, 04/28/2011 - 22:14 | 1218910 Silver Bug
Silver Bug's picture

Raise it to 100% DO IT! All it will serve is to make people more aware, and scratch their heads. The game is over, they are done.

 

http://silverliberationarmy.blogspot.com/

Fri, 04/29/2011 - 05:34 | 1219520 Urban Redneck
Urban Redneck's picture

Raising the margin to 100% is NOT in the Comex's interest since PRODUCERS will NOT hedge at that cost, which leaves only banks and their paper and hastens the demise of Comex physical silver settlement.

Thu, 04/28/2011 - 22:20 | 1218945 Dr. Porkchop
Dr. Porkchop's picture

Their desperation is now just pathetic. Sadly, the cartel only knows fraud and force. Once the fraud is too obvious, you know what comes next.

Thu, 04/28/2011 - 22:52 | 1219037 bigelkhorn
bigelkhorn's picture

THis makes me mad. Such manipulation going on right now, even if you are fence sitter to the manipulation this is proof the market is one of teh biggest ponzi schemes out there..

I subscribe to the guy from australia and his FFT economic newsletter at http://www.forecastfortomorrow.com  that guy has called many big events before they have happend, including the stock market crash in 2008 and the current financial collapse of the US. (currently happening) I found him from a friend last year, and he has some important work.

His oil calls are insane, and I have been making good money with them. He is well worth a look, if you want to keep two steps ahead of the sheeple out there.

I am worried about my financial future. Is anyone else nervous out there?

Fri, 04/29/2011 - 03:02 | 1219416 uhlmant
uhlmant's picture

half-life down to 12 minutes!

after about 10 half-lives, the effect is negligible

% remaining 100/(2^n)

n=number of half lives = <1%

Fri, 04/29/2011 - 03:06 | 1219418 OldPhart
OldPhart's picture

Try it this way:

 

,,|,,

Thu, 04/28/2011 - 20:09 | 1218466 UncleFurker
UncleFurker's picture

Silver bitchez?

 

Thu, 04/28/2011 - 20:10 | 1218470 mynhair
mynhair's picture

Thanks, forgot that.

Thu, 04/28/2011 - 20:07 | 1218467 Id fight Gandhi
Id fight Gandhi's picture

Why don't they hike the es margin?

Thu, 04/28/2011 - 20:09 | 1218478 mynhair
mynhair's picture

Cuz that would be bad for pumping.

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