Case Closed: CME Hikes Gold, Silver, Copper Margins

Tyler Durden's picture

And there you have it: CME just hiked gold margins by 21%, silver by 16% and copper by 18%. Mystery solved.

Gold Margin Hike 9.23

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speconomist's picture


Oh, wait, actually applying some empathy it makes quite a lof of sense.

XenoFrog's picture

oh for fuck's sake... What a rough week for us pm longs.

Idiot Savant's picture

Is there some way to determine who the big liquidators were today? It would be interesting to see who's getting insider information from the CME.

macholatte's picture

It would be interesting to see who's getting insider information from the CME.


Give that Idiot a silver cigar!

phyuckyiu's picture

Laugh a 20% hike across the board. I wonder how many times they can pull that bullshit off? SPOILER ALERT: maybe twice more then game fucking over.

Lord Blankcheck's picture

need to kill OBL one more time or will Khadaffy do?

eisley79's picture

Tyler(s) should always list the absolute margin in addition to the hikes, so we can watch the slow progress towards parity(no margin).

VegasRage's picture

The banks are desperate, God forbid the canary in the coal mine dies and lets everyone know they are screwed in fiat gas. What's next? The kitchen sink? 

eisley79's picture

For Gold


700 rising to 850 to carry 16,500ish, still aint nothing for margin.  They have many MANY 20% raises left to use...


that's still almost 20:1 leverage to carry




Silver is

18,500 to carry around 155,000

more on the order of 8:1 leverage to carry


strannick's picture

That came out like bits and bytes from the matrix. Heres the link


Following are the percentage changes in the COMEX 5000
silver futures (Tier 1) maintenance margins since 2009 (in U.S.
dollars per contract).
26 Sep 2011          $24,975         $18,500             15.6
09 May 2011          $21,600         $16,000             14.3
05 May 2011          $18,900         $14,000             16.7
03 May 2011          $16,200         $12,000             11.6
29 April 2011        $14,513         $10,750             13.2
26 April 2011        $12,825          $9,500              9.2
25 March 2011        $11,745          $8,700              5.5
21 Jan. 2011         $11,138          $8,250              6.5
17 Dec. 2010         $10,463          $7,750              6.9
16 Nov. 2010          $9,788          $7,250             11.5
11 Nov. 2010          $8,775          $6,500             30.0
01 Oct. 2010          $6,750          $5,000              0.0
07 June 2010          $6,750          $5,000             17.7
30 April 2010         $5,738          $4,250            -15.0
02 March 2010         $6,750          $5,000              0.0
12 Feb. 2010          $6,750          $5,000             11.1
15 Dec. 2009          $6,075          $4,500             12.5
21 Aug. 2009          $5,400          $4,000            -33.3
26 June 2009          $8,100          $6,000            -14.3
28 May 2009           $9,450          $7,000             16.7
22 Jan. 2009          $8,100          $6,000             -6.3
08 Jan. 2009          $8,640          $6,400               --

eisley79's picture

26/09/11          $24,975.00          $18,500.00               16.15%                      11.96%
09/05/11          $21,600.00          $16,000.00               13.97%                      10.35%
05/05/11          $18,900.00          $14,000.00               12.22%                      9.05%
03/05/11          $16,200.00          $12,000.00               10.48%                      7.76%
29/04/11          $14,513.00          $10,750.00               9.38%                       6.95%
26/04/11          $12,825.00          $9,500.00                8.29%                       6.14%
25/03/11          $11,745.00          $8,700.00                7.59%                       5.63%
21/01/11          $11,138.00          $8,250.00                7.20%                       5.33%
17/12/10          $10,463.00          $7,750.00                6.77%                       5.01%
16/11/10           $9,788.00          $7,250.00                6.33%                       4.69%
11/11/10           $8,775.00          $6,500.00                5.67%                       4.20%
01/10/10           $6,750.00          $5,000.00                4.36%                       3.23%
07/06/10           $6,750.00          $5,000.00                4.36%                       3.23%
30/04/10           $5,738.00          $4,250.00                3.71%                       2.75%
02/03/10           $6,750.00          $5,000.00                4.36%                       3.23%
12/02/10           $6,750.00          $5,000.00                4.36%                       3.23%
15/12/09           $6,075.00          $4,500.00                3.93%                       2.91%
21/08/09           $5,400.00          $4,000.00                3.49%                       2.59%
26/06/09           $8,100.00          $6,000.00                5.24%                       3.88%
28/05/09           $9,450.00          $7,000.00                6.11%                       4.53%
22/01/09           $8,100.00          $6,000.00                5.24%                       3.88%
08/01/09           $8,640.00          $6,400.00                5.59%                       4.14%          

eisley79's picture

added it with the absolute margins, using a current price of silver in USD of 30.93....

Divide the percentage by 100 to get the leverage ratios i mentioned before....

AldousHuxley's picture

Gold Silver started to tank full 2 days ago since 9/21.

Who got to front run this?

Where is the source of the rumor?

Some trader is making a killing with insider knowledge.

September 19th, 2011 at 10:46 am by Philip McBride Johnson

Here I am, sitting on the trading desk or in the back office of a major bank or brokerage. I hear about the Commodity Futures Trading Commission’s new “whistleblower” program that could pay me from 10% to 30% of any fines it collects if I am first to expose hanky-panky to the Feds. I know of an internal plot to manipulate the price of a commodity or its futures contract.

bid the soldiers shoot's picture

"Some trader is making a killing with insider knowledge."

I'm shocked, shocked to hear that traders make killings with inside info.

e_goldstein's picture

Rumor has it Blythe just put a down payment on a new yacht.

Hephasteus's picture

Good thing GLD did the vault fiasco to make sure the smash had a nice whipped credibility topping.

gunsmoke011's picture

Exactly - which is why this "Strategy" will inevitably fail. The CME is making it so there is no more leverage - so why not just buy the physical outright - rather than paying parity to get paper? When the people wake up to that fact - they will demand the physical - which will be a real problem because there isn't any -- or at the very least - there is not nearly as much physical as there is paper.

toady's picture

I'm starting to think they will start charging a premium when they can't hike anymore.

CompassionateFascist's picture get the real stuff..."they" already are charging a premium. AND the (paper) oz.'s of SLV are falling further and further away from the spot on phys. I feel like a sub commander who keeps raising the periscope and seeing the target on a converging line with the spread of torpedos I just fired. Again, CME (and friends): keep up the good work!

C_Monster's picture

No. Regulators are too busy conducting important research on the mating habits of midgets and fist f@%&ing.

jekyll island's picture

It's the CME board members.  Probably the same people who blew up the Hunt brothers.

Thomas's picture

I must say that the stealth bull market was more fun. You all of a sudden find the speculators in the pool, they start defecating, and next thing they have to charge the pool with big boluses of chorine. My leasurely swim got taken over by the Marco Polo crowd. Hike the margin requirements some more and get the specs outta my pool.

mayhem_korner's picture

@ silver shield


Great post - thanks.

Frog-And-Toad's picture

I've got 38 calls for Nov... Think that the Bernank will print about a month before then?


(And just so you know I bought those around Feb. and was pretty new to pm investing.  I've since bought several 10oz bars and a couple of 100oz.  I'm looking to add to my collection, but was wondering if anyone could recommend silver or gold accumulation since I already have about 300oz of silver in various forms)

agent default's picture

I've got calls for 41 43 and 45. I think we are both hosed here I think. 

But after this let me tell you this market is fucking bullshit.

Frog-And-Toad's picture

I still am a firm believer that the price of silver will be upwards of $50oz by jan 1, but after this blow I will NEVER trade the paper again.  

I'm through with this bullshit market.  It seems like even when I play the fundamentals, I lose the house money and barely manage to get out with my own skin.  It's put me through some sleepless nights, as I have a 9-5 job and try to do this on the side.  I am about a year our from University, and I have to tell you that I am ready for the coming collapse.  This system is rigged to the point where the average everyday person knows it.  

Sustainable and self-sufficient neighborhoods and towns IS the future.  Fuck all this petty bullshit around us.  I'm tired of walking to work and hearing marketer's wet-dream people talking about buying this fucking thing or that.  I'm tired of people not understanding that they are getting hosed.  I actually had a co-worker tell me that he wants a government job because they make so much, and when I tried to tell him that if everyone did this, you may make $50,000 a year, but your purchasing power  would drastically shrink.  He said "but I'd make more money though".  This kid went to college for fuck's sake.  

This whole culture is a fucking joke, and I say good riddance to it.  People need to start actually living, and not acting like fucking pathetic children.  When I walk down the street, I can't tell you how many people I see that just have hopelessness and scaredness in their eyes.  This is not what our past generations had fought for!  I am called non-American because I want us to be humble and value the TRUE American dream, that everyone is entitled to THEIR verision of success.  You have to WORK for it though, and it will not be given to you, and nobody else should be able to tell you if it's right or not.  That's irrelavant.  It's YOUR DREAM! IT'S YOUR LIFE! DON'T BE A FUCKING MATERIALISTIC ZOMBIE! LIVE, AND BELIEVE IN YOURSELF. If you fail, so be it. Simply move on and redefine the dream.  Life is a journey, and it's not always comforable. If your life is comfortable or easy, and has been your whole life, then you're not challenging yourself. You are the GREATEST thing this world has ever made, so find and embrace who you are.  Challenge yourself constantly so you can find out who you really are! 

Sorry for the rant, but what is happening in this country is dispicable.   

honestann's picture

You are right on, but the biggest practical problem with the "american dream" is that... people need to actually produce something --- something real, something physical.  While that should be "no problem", most people today are utterly unprepared to produce anything real.  Poke keys?  Sure.  Push paper?  Sure.  Actually produce something real?  Forget about it!  And most people know this, which is why they are so depressed and so hopeless.  They've been screwed by the schools, colleges and everything else "official", and they didn't bother to "get real" on their own initiative.  The fact is, it is "game over" for human beings, because they bought into all the lies and soundbites the predators-that-be and predator-class handed them.

Idiocracy's picture

Future historians will write that America packing its factories and transferring its know how off to Asia in the 80's, 90s and 00's was the biggest strategic blunder in the nation's history.  

Free trade without free x-rates is a perversion and a path to disaster

Boxed Merlot's picture

Last time I checked, the almonds, pistachios and walnuts are getting ready for harvest.  The fruits and vegetables are well into the canning stages. The dairy cattle have their next years forage being tucked away while their milk and cheese has only been increasing.(Oh yeah, and the grapes are about ready too)  Life continues to be good in the important areas here in the central valley in CA.

Sure we have some ding bats in gov't still wanting to fool around with H2O, but events like this just show the importance of these basics in lieu of Mcmansion construction, fraudulent education "opportunities" and other worthless pursuits, including obstructionist regulatory personnel.

Money changers will continue their deviant activities as that's what they do.  Capitalizing on the poor, ignorant and weak members of society is their stock and trade.  For the rest, the admonition to seek justice and love mercy will bring greater satisfaction for our 70-80 orbits.



MrPoopypants's picture

Nice to see another central valley-an on the board. You in Modesto? Fresno? I used to live on some Blue Diamond acreage near Merced.

agent default's picture

MUHAHHAHAHA! If you take a step back from the carnage and contemplate the scale of this blatant manipulation you can tell someone big is scared shitless of a price ramp up at this point.  My bet is well above $50. by end of year.  But as Faber and Rogers say "If you can't handle a 30% down move on your holdings... " well  you know.

Abitdodgie's picture

Did anyone on this blog just go out and buy gold/silver without resercing it first , of course not , so therefor you knew it was rigged before you got into it so whats the problem . On another note . In the wizard of oz the only wepon Dorothy had were her ruby sippers (in the original book they were silver but changed to ruby for Technocolour new movies) which if you have ever seen the original story behind it ( Bankers, TIN men Tax identification number, gold paved roads  etc ) you will know that her silver slippers brought the bankers down . So sit back have a smoke and a drink because if you have stacked life is GOOD

pupton's picture

Uh, do you recommend we play dark side of the moon at the same time?

mayhem_korner's picture

I'm alright, Jack, keep your hands off of my stack

gorillaonyourback's picture

good for you,,,, remember gold and silver are not means of making money they are a safe storage of ones labor,  eventhough the manipulation continues.   the margins stuff will continue to be less and less meaningfull,  but not by if you look at todays reaction  but the 6850 intiall and 5000 maint is getting squeezed.  what will the margin mean when intiall is at 7000 and main is 6950? not much.  and they cant go any higher because pan asian comex is coming and the competition will fuckem

CH1's picture

+ a big number, FnT. Well said.

Dingleberry's picture

PLENTY OF PEOPLE OUT THERE tellin you NOT TO PLAY WITH PAPER......IT'S ALWAYS BEEN FUCKING RIGGED!!! "LBMA"....ANYTHING with "LONDON" in its title is a fucking SCAM!!!! You have to know this! Bob Chapman, MAx Kaiser, GATA, etc. etc.  Where the fuck have you people been for the last 5 years plus??? These guys are Wall Street vets and HONEST.  They have spelled out the manipulation in such detail that a second grade kid can figure it out. Take physical possession or get fucked. Period.

blunderdog's picture

ANYTHING with "LONDON" in its title is a fucking SCAM!!!!

That's so funny I'm crying.

RockyRacoon's picture

You are not alone.   There are many with your sentiments.    Just keep the faith.

Don Keot's picture

My degree in economics was in 1961 and one of the fundamental theories is that for a society to succeed for an extended length of time is that what you earn has to have a relationship to what you produce.  That theory was violated long ago and has mostly been forgotten but it is coming back loud and clear.  The parasites of society have become too much of a burden for us to survive.

honestann's picture

Just remember.  EVERYONE who has been invested in PHYSICAL ONLY has done just fine... better than fine.  And guess what?  We love this short-term take-down, because we can convert whatever fiat we accumulated recently into physical at a great price.

Give up on margin!  In one sense, those of us who accumulate physical appreciate the crowd who buy on margin, because you let (actually, beg) the predators at the big banks and regulators to screw you AND give us great buying opportunities.

Get real.  Get smart.  Get physical.

Hulk's picture

But with that said Honestann, if I were a paper trader, I would be pissed to homicidal levels. This is at least the second time they have raised margins within a week of options expiration, changing the rules mid-game and saving the commercial shorts billions. The god damn leaks piss the shit out of me too. But in a nation of unenforced laws, anything goes...

honestann's picture

Oh, I totally agree with you.  They are worse than scum.  However, when you jump into a pit full of scorpions and rattlesnakes, you gotta expect trouble.  The predators-that-be and predator-class have been doing this for a long time, which makes me wonder why people are willing to play in a KNOWN repeatedly rigged game.

holdbuysell's picture

"Get real.  Get smart.  Get physical."

I like it. You should make t shirts and billboards on that line to get the word out.