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Interactive Brokers Warns Gold Margin Hike Imminent, CME Next?
The first shot was just fired in today's battle with daily record gold prices. IB always tends to be a few minutes ahead of the CME. And following last week's 22% margin hike in gold, we are confident the CME will do everything in its power to pull a "silver" on gold. Are we about to experience a barrage of margin hikes in gold? Stay tuned and find out.
Interactive Brokers bulletin board
To HKFE,HKMEX,NYMEX,NYSELIFFE traders:
Fri Aug 19 13:29:35 2011 EST
As a result of the volatile trading environment at the present
time, please be advised that Exchange margins and House margins are
likely to increase over the next couple of days. For exchange-
specific increases, please visit the respective websites. IB will
also be increasing the gold derivatives margin. Please monitor any
affected holdings closely and manage your risk accordingly.
h/t London Dude Trader
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I agree but for those of us without an E-trade account and only want to accumulate physical its the opportune moment.
Your point about GLD being overextended is how the banks use the swing to take delivery of a basket.
forgot to include: 80/20 phy/fut(or etf)
I entered a pretty weird custom hybrid about 3 weeks ago around the December quarterly expiration, sold 190 puts, bought 140 puts, and bought 190 calls. The put sell paid for the put and call buys and then some, and I'm pretty confident those 190 puts are going to expire worthless. Kind of a version of a vertical put spread with a call kicker. Anyways, making a shitload on it, and it's still looking like a good trade to enter.
What are the percentages now in regards to gold and silver contracts - in other words, how much more tightening can occur prior to requiring 100% of the cost of the contract to be paid up front?
Do you think the paper gold market is correctly pricing the value of fiat currency issued by insolvent states?
Make the margin requirements 100% - drive everyone out.
It's all good. I'm already on the other side of the bridge.
Thank you for the message. I was wondering when they would intensify their mainipulation....desperate times....
Have they assassinated Hugo yet? Have to send a message to all those 3rd world countries that their gold belongs to the masters of the universe. Ghadaffi and Asssad: D-Day is coming.
The Insolvent States has a tendency to freeze the assets of anybody deemed unlikeable. You can be deemed unlikeable very easily. I don't know why anybody would let this country have any control over their money.
(Boy, did I edit *that* before posting. I don't want to be deemed unlikeable...)
The last time they raised margins, gold dumped, fell apart screaming lower for about 4 dollars and 45 minutes. Makes no difference. And do we care if it moves lower over the next few weeks. At some point there will be a correction, 100, 150 or more. Have no idea, but will buy more when it occurs.
What a broken market and country. Hope Obama is enjoying his vacation. And I guess we are paying for his golf times, great.
Well, the vision of Buyers laughing at the Margin hikes to 100% and beyond while simply pushing down the buy button and making payments instantly via bank wires...
That Bullion Metals shop is going to become one of the most dangerous and unhealthy work place to humans when the Boss stomps out of the Office and starts to bellow at the poor Galley slaves rowing the cubical trying to stem the buying of metals they dont have.
Someone is going to get up on top and grab that soap while shoving everyone else down below.
Praise the internet. Praise ZH. Praise knowledge.
I hope everyone cashes out and buys silver. the real stuff.
I will use any down tick to buy more.
To all the strong hands, assay I. ooo I could crush a grape :p
Damn, if only I'd taken Leo's advice and bought those Chinese solar stocks, I wouldn't have these worries.
+1000
It's all about green (until a hurricane comes along.)
No increase in Treasury or S&P futures, just fuck with Gold and Silver. This country is run by criminals and its time to remove all of them and return free markets.
YES PLEASE!
The one-way mentality here is stunning -- gold's version of Nasdaq 5000 and housing 2006.
True believers ought to read this:
http://www.safehaven.com/article/22232/gold-overbought
I don't see him saying anything new there. Nearly everyone here is looking for a small "correction", if you want to call it that. Doesn't change the fact that gold is still going up.
Yep, because the deficit issues will SUDDENLY disappear, which will MAGICALLY cure the values of the declining fiat currencies, which will cause gold to drop IN AN INSTANT.
I personally expect the tooth fairy to solve my financial problems.
I agree with machineth, I cannot understand why someone sitting on a huge gain would not consider spending a hundred bucks or so to buy cheap OTM gld puts or gll calls, it's not that difficult, and the potential return could cover someone all the way down to the 1500 level.
but what do I know........I'm just a fan......
Cute charts. here's another one for you..
http://research.stlouisfed.org/fred2/graph/?id=AMBNS
And a leaping high five to you sir. And yes, yes this does imply a "fair value" for gold priced in dollars at $2700+/oz..
$14Trillion+ reasons why there's NO GOLD BUBBLE!
They told me it was "too expensive" at 800. I bought.
They told me it was "starting to look like a bubble" at 900. I bought.
They told me "It's $1000 !!! Are you crazy ?!??" at 1000. I bought.
They told me "Too high" at 1100. I bought.
They told me "It's just a barbaric relic" at 1200. I bought.
They told me "You can't eat it" at 1300. I bought
They told me "It's *definitely* a bubble now" at 1400. I bought.
They told me "Correction inevitable at 1500". I bought.
They told me "You're crazy if you buy now" at 1600. I bought.
Fucking 1700 went by so damned quick, I didn't have time to buy (I buy on the same date every month - it's when the paychecks hit).
At 1800, it's now "overbought". I will buy again at the end of this month.
I buy, every month. Up. Down. Overbought. Bubble. Correction. Dip. Rise. It doesn't matter.
Yeah. They've been telling me this for 4 years now. It's now over $1,000 *over and above* what my first ounces were bought at. Kiss my ass. I'll keep buying. Every month.
Sgt Sausage: "When I tell you to jump Private Gould, what do you say?"
Private Gould: "Sir, how high sir?!"
"When I tell you to buy that metal, do it."
"How much Sir?"
Allofit.
Fast forward to Court Martial...
"Sargeant, did you order the buy?"
"You cannot handle the price sonny"
Did. You. Order. The. BUY!
Total
Economic
Collapse
hikes bitchez...
To criminalize? Or to monetize? That is the question.....
Seeing marginalize is sinking fast........
Rick "Did I you tell you how much I love Jesus?" Perry will get the trailer park vote. If he can get Huckleberry to agree to be his running mate they can pick off the over 300lbs vote. Granted their's gonna be a lot of overlap but that's still a huge demographic here. No wonder Band of America is sniffing around. They like what they see. Perry/Huckleberrry 2012 Dream Team. 2 pathetic harlot sellout establishment types. Can't wait but if it came to a choice like them or Mit Romney or listening the the "Straight Talk Express" dinosaur I'd just prefer to write in Ron Paul.
I'm voting for Jeff Davis . . . again. There's more life in him after all these years than in any of these present candidates.
Dr. Gonzo,The Dems are HOPING Perry is the Nominee, as they think he will be easier pickens than Romney, or Bachmann..............
They are fools, they just telegraphed who they really want to face, Bachmann, or Romney.
They do not want to face Perry.
Trust me.They are so inept at telegraphing their real intent, it's laughable.
Most folks in the South(Red States) are not aware of all his shenanigans................and they will vote for him.
Hell they would vote for ME, if I was running.Single digit approvals do not bode well for Der Fu**herr Golf"O" Matic.
Fundamentally, we're witnessing a war between real money (PMs) on one side and fake money (paper fiat currencies) on the other. The Establishment is committed to the latter and will do ANYTHING to perpetuate the fraud. So why is anyone surprised when they continue to attack gold and silver? But in the end, PMs will win out . . . and the banksters and their ilk will be dealt with properly and finally.
To scare weak holders of Gold - before it was "IMF gonna sell Gold", now it is "CME margin hike", next what is it going to be - "Uncle sam is going to confiscate your Gold" ?
Smart money fading gold and rotating into silver.
Smart money fading gold and rotating into silver.
I double dog dare the CME to raise gold margins.
Sweet I can close the short side of my Jan '12 175/200 GLD call spread. And with the help of a Venezuelan dictator, ride this thing to 2500+. Can't wait to read the leaked message; "Sorry Mr. Chavez but we'll be unable to relinquish possession of your gold for the foreseeable future. In the meantime, please accept the enclosed picture of your gold in our vaults as proof that we still have it here. Sincerely The B.O.E."
BTW, been waiting for silver to break $42 and start its run up... and that starts now!
It sure looks like Gold AND Silver will both get a margin increase next week.
Both don't really seem to be sticking to Bernanke's script.
How much further can the margins on Silver be raised? Frankly I think they couls raise the margins to 100% and it would no more than a speed bump.
To 100%. But by than, the comex would be nothing more than a bullion shop selling stuff they don't have.
In those margins lies the tipping point. Once paper goes down on a silver up day, it's truely over.
These hikes are going to have to be the equilvialnt of a hypernova.
That way I can scoop silver as it falls out of the sky at 20 dollars an ounce and grab some gold as well.
I have been feeling the deer in the headlights this week unfortunately since that damn Chavez emptied the gold.
HIKE THIS .
Tomorrow morning (it’s a Saturday job), but still needs must; I have a roof problem to sort out on a retail unit.
It’s going to be a bit of a flog, but still needs must.
But here’s a view on the method of payment; I’ll be paid in ‘fiat currency’ but I can exchange it a Asda for something useful. If we ended up with total collapse, and they offered me gold. I’d tell ‘em to stuff off and ask for something useful.
The odd thing about gold is it’s only got any value if everyone believes it has.
But ultimately it’s a bit useless, because you can’t do much with it, apart from look at it and make jewellery out of it, and maybe electronic connections that work a bit better.
In any event assuming a total collapse occurred and I’m asked to sort out a roof problem, it wouldn’t be gold I wanted for doing it, I’d pick food in exchange.
Gold in my view is a bubble, because I wouldn’t exchange my grief of sorting out a roof problem for it, I’d want something more useful.
And I dutifully apologise to those financial bods that know more than me.
"The odd thing about gold is it’s only got any value if everyone believes it has. "
same thing can be said about paper money . good luck with your roof.
Looks like we have a Newbee here !
Linked-in from the Globe & Mail article no doubt.
You have a valid point Dempter, but you're looking at it from an all or nothing standpoint. We could face a currency collapse, which will bring about a new currency. The old currency will be turned in for new currency at say a ten to one ratio (just throwing numbers out). This is where gold will help you keep what you earned (in theory). But I agree, in a total collapse I would want goods or services, not paper or metal. Of course, if a total collapse comes about, most of us won't be here very long.
I have a bit of everything, such as Ammunition.
I used to say what good is 2000 rounds in your home if you will not live long enough to burn it all?
Ergo.. training. So that when they come for you you dont go all to shit and die.
Just yet.
Gold is finally showing either strength or showing just how scared the lemmings are waving cash for it. Silver will not be allowed to stay above 50. I saw that once before. Will that hold true next time?
We will see.
I don't buy gold because I think the end of the world is coming. I'm simply hedging against currency devaluation. You'd have to be pretty fucking stupid not to.
That is more true of paper money than anything else. It represents debt. Its quantity can be increased easily and quickly. What is 'odd' is that people have more faith in unlimited paper fiat than gold which is limited and proven over thousands of years to be a reliable store of wealth.
In fact you could argue that everything only has value because everyone believes it does - it is established via competing desire. How much is a boat worth .... in the desert - nothing while on a secluded unmapped tropical island it is woth more than just about anything else.
Money is simply a medium of exchange. Accepting gold as payment and using the gold to pay someone else to fix your roof is exactly the same as using fiat dollars. The difference is that the value of the fiat can more easily be reduced while you are holding them (via inflation) - thus stealing your stored wealth. In both scenarios you are ultimately exchanging your labour for the roofers labour.
You have much to learn, grasshopper.
Dempster,
There is so much wrong with your points, (and some correct), I do not really know where to start.
No matter waht all the people think, Gold has value, and is valuable, simply because of it's rarity.(leave aside any other uses.)
If you needed a repair to your roof, why not use gold(sell it) and pay for a new roof?.
If a total collapse occurs, there is always going to be many, who in foresight will have stored 1000's of times more than they will ever need, and will gladly take Gold in exchange for a set amount of food.(as it's been money since the dawn of man).
GOLD,(for the 10,000th time is not in a bubble.
The DEBT is the bubble.Gold is moving up, not because of it's inherent value per se, but because of it's one of the only things that will always hold value.
When the Market reaches parity with the cost of Gold, at ONE ounce to Market value,we will be back at true value.
Gold is seeking true value.Get rid of the debt, and the price of gold goes back into line.................
Not a financial guru by ANY stretch.
Gold is/has not even come to it's Inflation adjusted historical high yet, so HOW can it be in a bubble?.
It cannot be.
Margin hikes now translate to blue light specials and everyone that knows the PM markets knows that as well. Hike them all you want, I like buying stuff on sale.
the govie wants to push guys out of gold and into risky assets
pain to create more pain
just like madonna said>>>> lets get physical PHYSICAL
Moron; Olivia Newton John, not Madonna :)
Back in da 80's Olivia, very sexy. Madonna too with the hairy armpits.
Material Girl slippage.
Haha just make sure Chavez gets his gold delivery in a timely manner..
10 million ounces bitchez...and wrap the bars up in us dollars so they don't get scratched during transport
Living through a currency devaluation and how to cope
I was managing an American subsidiary of a successful large US Company in Mexico. It had been a financial turnaround for our team. Cash flow had accumulated in our bank in Mexico and corporate didn’t want the money repatriated to the US. Although we had already paid a 35% income tax to the Mexican government, we would have to pay an additional 30% exit tax to repatriate the money. In addition, we would have to pay high fees for the peso/dollar exchange, in order to make the transfer. The company wanted to expand our successful business and so we decided to keep the money in Mexican pesos to be used for further expansion.
One morning, as my wife and I were on a trip driving on the highway, we heard a national message from the President of Mexico in 1976, Luis Echevarria, one of the most corrupt presidents in Mexican history. “It is a lie that we are going to devalue the peso,” he said.
http://lonerangersilver.wordpress.com/2011/08/13/living-through-a-curren...
AhhhHHHHH SHIT!!!!!
Gold is gonna fall Beotchez and take silver with it!
thought bubble, "CotDAmn I want to buy some cheap PRECIOUS metals"
IT'S A BUBBLE - YEAH A BUBBLE!!!
I hear Chipotle is looking mighty cheap. And there's a butt-load of confetti-pushers pumping CRM to $400!! right? RIGHT?
Margin hikes are for bitchez!
Well, now that chavez and others are bringing their gold home, the big boys are going to have trouble selling stuff they don't own anymore, hence the margin hike
After the pigmen were out playing pattycake with margin calls Uncle Rico made 150 bucks!
The dip is after the margin call. The market will punish the price fixer.
Seeing as the price gone up, a corresponding margin increase is in order. You complain the economy is overlevered, and then you complain when the exchange prevents people from overlevering.
Price is impacting demand in India.
I think there is some confusion about the percentage of the margin, and the hike.
Simplified example : Pretend a contract is worth $100, and the margin is currently $10 or 10%. A "margin hike" of 40% is an increase on the $10 margin, to a new total of $14. The new margin is now 14%.
Please, correct me if I'm wrong. These marging hikes sound a lot larger than they are in reality. Still, if you are leveraged up to the hilt, it all gets magnified and you get you ass handed to you on a platter.