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It's Baaaaaack: Interactive Brokers Just Hiked Silver Margins
Here we go again...
Aug 03, 2011 10:43 EDT
NOTIFICATION - Margin Increase on Silver Derivatives
In light of recent unprecedented volatility in silver markets, the exchanges that offer trading in silver derivative contracts are increasing the margin requirements on these products. In an effort to adequately address the inherent risk resulting from this volatility, IB is increasing margin requirements on silver derivative contracts to a level exceeding that which the exchanges are implementing.
Please monitor and manage your risk accordingly.
Interactive Brokers Customer Service
h/t Brian
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Silver volatile? She's been asleep since May.
Exactly, what a bunch of horseshit.
Anybody not thinking that the CME is working out the details of its margin hikes on silver to be released in a few hours is in for a sore reminder of the cruelty of market regulation, again, and again, again.
Watch silver go up. Watch silver do down.
Meh. Makes no difference when you hold physical.
We all know where this train is heading, anyway.
Either I'm having deja vu, or I've seen this before two days ago when I wrote about it ;)
http://silvergoldsilver.blogspot.com/2011/07/here-we-go-again-ib-raised-...
http://blogs.telegraph.co.uk/news/jamesdelingpole/100099194/seven-types-...
2.) Failoblog Troll. Failoblog troll’s dream is to have a blog as successful as the one he trolls. Unfortunately – as you can see for yourself if you’re foolish enough to follow the link he provides to his tragically unread blog ....
Wow, you have no idea what you are talking about. Kind of typical for a ZH troll.
I read SGS' site almost every day. Look at his traffic tracker. It's buzzing.
Well, I read that blog. I think lots of people read that blog. Please quantify "tragically unread".
And when does everyone wake up and smell the desperation? If the CME starts to raise margins, it seems it ought to have the effect of shaking out the weak hands and then catapulting or slingshotting the price of silver.
And, as someone else pointed out, the PPT has just been at work. I guess there is a use for $2.5trillion to be factored into the markets. I'm smelling desperation in all the numbers, desperation in the HFT algos and the markets in general. Everyone wants to be risk off, and there is only one class of investments with no counterparty risk.
And when does everyone wake up and smell the desperation? If the CME starts to raise margins, it seems it ought to have the effect of shaking out the weak hands and then catapulting or slingshotting the price of silver.
And, as someone else pointed out, the PPT has just been at work. I guess there is a use for $2.5trillion to be factored into the markets. I'm smelling desperation in all the numbers, desperation in the HFT algos and the markets in general. Everyone wants to be risk off, and there is only one class of investments with no counterparty risk.
For all I care they can raise the margin to 100%, at which point all the crap paper "silver" burns up and the real metal goes stratospheric. I made my monthly 50 SE buy last night, paid a healthy premium over spot to get these big beauties, and have no complaints. Each one will, post Ponzi Collapse, buy about 3 days of groceries. AKA: survival. Life itself.
Like a Boehner.
I'm just taken back. Really? Where are the margin increases on gold which has gone up like 15% in just a few weeks?
I guess I shouldn't bitch, keep the price artificially low so I can buy some more.
LOL. That only shaved $.40 off the spot price... and it's climbing back to where it was.
I have to say, it's fucking hilarious that they themselves are the ones that create the volatility. If they just fucking left the goddamn margins alone and adjusted for market size similar to gold silver wouldn't be $40/oz right now. Try $150/oz or something near there I'd imagine.
This shit's hilarious because we all know it's just going to fucking explode causing silver to be outrageously expensive due to those pesky facts and fundamentals.
"You're doing it wrong" comes to mind.
That was my thought as well. I half expected it, but it's a pretty dumb move. It only solidifies the base further.
It also tells me something is going on here. Why silver and not gold? Because it's a TINY market. Because there's NO inventory. Because there's buckets of depreciating $$$ and €€€ in bank computers trying to find some material form other than excrement. Because the chinese opened up shop and are ehm.. shopping.
Ratio is just below 40.
*snap*
It solidifies the base of those who own paper silver and/or do not have physical possession.
...and that's the majority of PM 'owners'.
When the SLV breaks and the COMEX delivers 100% premiums in FRN's to those who cannot get their silver, the value of their rewards will be nominally higher with a substantial real loss.
Canada and US are ass-buddies... painful to say, but I'd even watch out for my fav PSLV.
Hold the real, or you will squeal, Hook Line and Sphincter says hold the real deal.
IF COMEX defaults (a big IF), it remains to be seen who's left holding the bag.
I haven't seen any hard guarantees that both the trustee (Mellon Bank) or custodian (JPM) are responsible for the inventory. But I'm not a legal expert, so perhaps someone can point that out. (?)
http://www.theundergroundinvestor.com/2009/07/the-gld-and-slv-legitimate...
http://seekingalpha.com/article/265086-what-s-in-the-ishares-silver-etf-...
As for solidifying the base, I threw in physical with SLV shares, because both (in title) should mean physical, and are governed by the same price (spot). Hope this clears up what I meant.
Of course I bought the real thing. I'm not a trader, just an investor.
Because it's too expensive to silver plate tungten.
Didn't they have to hammer silver like 5+ margin hikes in a row in rapid succession to get it going in the direction they wanted (down). That they had to do it so many times over a short period reaked of desperation. Might play a repeat this time around.
Facts DO NOT conteract manipulation.
100% reserve requirements for silver a coming? Bullish for physical, bearish for paper silver?
All I know is that I am very happy to see this. I have 5,000 Federal Reserve Notes burning a hole in me pocket. Would love to convert that debt into traditional money next week at $35 an ounce.
I like where your head is at on this one.
Would love to convert that debt into traditional money...
Classic..
and remember... there is no such thing as a premium. Fiat trades at a discount to Silver, NOT the other way around.
Wish I could properly credit the guy who said this but I don't remember his name.
"Any day you can trade fake money for real money is a good day"
Hiking margin requirements is like lowering interest rates. The closer they get to 100% margins the less effect is has (or in the case of interest rates, the closer they get to 0%). Once the margins get above a certain level, they have lost control.
As margins go to 100%, the opportunity costs of holding physical approach zero.
Party on.
Very, very true. That beeping sound is me backing up the truck. Lift gate is down, boys...load up.
If you start from the premise that this action is about managing volatility then, of course, it makes no sense.
It's not about managing volatility though, is it?
No it isn't. And no effect on the market.
Yes, but they're using JP Morgan SSRI refills as a proxy.
I wonder if this is contagious for Gold...
Translate: Blythe sweatin it.
JPM 39.52
Silver 41.85
The PPT just kicked into action as well.
$2.8t is going to buy a lot of equities.
Ensign, MOMO drive warp 9, ENGAGE!
i'm not entirely convinced that this is their goal.
after this "dip" everyone will BTFD in preps of the QE3 pump to the moon whereby the "boys" will be selling into the pump and then retail is the equity bagholder. the real game will be FX, USTs and AU.
Classic intervention.
Now if only the family intervention with my brother-in-law goes half as well. :)
Good luck with your "surprise party". Typically, folks make a dash for the exits. (I don't think silver scares so easily these days.)
Did the PPT get new funding from the debt deal?
Remember a couple of weeks ago Timmy had to cut off funding to the Exchange Stabilisation Fund to keep under the debt ceiling limit?
Interesting how since then Gold has rocketed higher, and the stock market has headed lower.
With a new, improved debt ceiling now in place, I guess the ESF can be reloaded to provide the PPT with more firepower.
I should think they'll be quick off the mark to reverse the 'Damage' done to them while they were unable to intervene.
PPT = China.
Market recover almost 100 points in few min?
Any news? Or just PPT pushing few buttons?
Half life prediction - 3 hours.
You really think it will last that long?
wankers!
That message was delivered to IB customers yesterday, about 24 hours ago.
GG
Volatility....WTF.....what volatility?
The Ministry of Truth has decreed that a slow and steady upward movement of traditional money is indeed volatility, while dramatic drops in the price of silver is stability.
I believe the volatility they are referring to is regarding the US ponzi scheme more than anything else. Have to try and shake out the weak hands in silver in order to scare them into a "flight to REAL safety".
The world is upside down in the realities of the cartel. Fuck them in the goat ass.
Volatility = price increases in the PM markets. The stock market can go upup and away with no hikes...but PMs, oh no...can't have price gains in barbarous relics.
they can't stop the silver bullet train..........
hike by comex soon?
They don't have the guts. It would bring a wave of hurt down on the system.
Aren't they out of silver yet? Thought the Chinese Hong Kong exchange was taking all the action. If comics (pun intended) keeps hikin, they won't have anybody wanting to use them.
Impending takedown, bitchez!
Why is it "recent unprecedented volatility"only when going up?
Oh well someone needed to save the JPM:AG which was out of control this morning.
Why do they insist on using that excuse when most people see through it? That's the real question.
Perhaps to keep people that don't see through it (i'd wager most, because they don't understand the terminology) away from purchasing silver. If they let the price of silver rise, it gains attention. If they let it rise, then make it drop, and tell people they are doing something for some reason, then the ignorant look at it and see it's falling, but don't understand what it means to hike margins or what volatility is. They assume then, that Comex is trying to "help" because, when their attention is brought to it, the price is declining or seems unstable. Then, without further education and a few assumptions, the ignorant remain ignorant and afraid of that which they do not understand, and therefore will not be a hinderance to keeping the scam going for an indeterminable amount of time.
Forced re allocation, bitchez!
Algo pretty much destroyed any quotation whatsoever! No real time quote matches any other! it is time some one blows away those damn servers already! What a fucking JOKE this Casino has become!
PPT just recvied their new goverment purchasing cards by Fed EX P1 with whole new credlit lines, we are back!!!
OT: Deutsche Bank buys gold out of the mines:
"Aug 3 (Reuters) - Yukon-Nevada Gold Corp said it plans to enter into a$120 million prepaid forward gold purchase agreement with Deutsche Bank AG (DBKGn.DE: Quote)"
http://af.reuters.com/article/metalsNews/idAFL3E7J328220110803
My broker cant keep peace dollars in stock
As cash becomes even more worthless no one will give a shit about the size of the margins it will be buy at any cost.Until an attempt is made to fix the broken financial system nothing will work and as we all know the system is broken beyond repair.The Governments and Central Banks are full of F****n Idiots.
Gosh you were reading my mind and thx for saying what I am thinking but had some Southern politness to keep it to myself.
Let em' hike it, really in the end it will force traders OUT of the BS paper mkt, and into physical if they wanna play.
The rest of the WORLD ain't playin COMEX games, their just snagging the stuff as fat as they can.We are just small fish in the Silver game.
Governments are idiots. Central Bankers are geniuses. They make out like bandits and leave the rest of the world wondering how they did it.
Governments are idiots. Central Bankers are geniuses. They make out like bandits and leave the rest of the world wondering how they did it.
Gosh you were reading my mind and thx for saying what I am thinking but had some Southern politness to keep it to myself.
Bloomberg talking about Fort Nox - US beeing the largest owner of Gold ...want to make a tour. will most probably find out NO GOLD LEFT!
also all day long talking about Waner numbers. WHEN will they start talking about incredibly cheap gold miners. Even HUI stocks trade at 11-12 PE ratios. unbelievable
USA
ASK WHY, ASSHOLE
Fort Knox is more empty than the North Pole.
Nah. I'd say there's plenty of metal there. Some of it may even not be tungsten.
The real question is how many times over the metal has been leased or otherwise encumbered. You won't be able to tell that by walking around the vaults.
I think you're right. Most of the bars there are from melted down gold coins that got consficated in 1933. They don't meet the LBMA deliverable bar requirements, but there's alot of gold in them. Who actually owns the rights to those bars is the big Q and the best source of info on this is www.gata.org.
Get physical and consider goldmoney.com. Viamat vaults are audited to make sure the metal is really there and it's in LBMA good delivery quality. Also visit www.FGMR.com.
Fuck paper.
.
probably about effective as todays SNB intervention considering amt of specs
What about the vol in stocks? Are they hiking margins on index stocks?
Wonder if they will hike the treasury margins due to the unprecedented volatility.
Go for it, you cretinous toads!!! 100% margin on silver, then die.
George Carlin's words 4 years ago are truer today
http://lonerangersilver.wordpress.com/2011/08/02/george-carlin-they-dont...
Silver down to $33 please and Gold to $1500 please, thank you JPM
If one believes that JPM collateralized their stock to fund their naked shorting campaign against silver, which I do, then JPM @ $39.81 (today's price at the time of this reply) means silver around $35ish based on the past JPM/Ag parity takedowns.
God, I'm salivating like a teenage boy about to muff dive. Mmmmmmm......bring it on JPM Fucks. These guys are cornered. The lower the paper price, the more physical I buy. The higher the paper price, the more those around me start seeing what I have been talking about for the past three years and the more they end up buying.
Actually, you summed it up rather well.
+100
I think now that there is an actual voting system in place here you will have to limit yourself to just +1. Anyways do you have some kind of crony connection with the Zerohedge admins that give you that sort of disproportionate voting?
God, I'm salivating like a teenage boy with a head cold about to muff dive for the first time.
Fixed it for ya.
Dick,
Thanks for the laugh about the teenage boy. I haven't laughed that hard in a long time. LMAO. Now pardon me while I go wipe my chin off.
From your lips... err... keyboard to God's ears!
Can't do it too often. We're going to en up with all the paper and the Chinese and Ruslies with the PMs.
remember, if tptb go back to the same well again physical buyers will overwhelm supply. the financial system as we know it is changing. central banks might be big buyers of physical on a pull back. i know the lieutenant john chard cb will be in the physical market on weakness.
Yep, the banksters have lost the PM war. Nothing but retreat and rear-guard action left for them.
true. and the banksters may have changed teams. they might be new big buyers.
Doesn't look like it did much good. They'll have to hike again this afternoon.
Okay, noob question here:
Isn't gold giving the (assumed) market manipulators a problem right now? Silver has been more or less waffling since the $50 spike. Are they trying to reign in gold levels by swatting at silver? why not raise margins on Au contracts?
The only other reason for this silver hike is .... silvre is more accessible to the general consumer? Then again, buying a gram of gold vs an oz doesn't matter. the YOY return would be the same...
Gold is harder/more expensive to manipulate via naked shorting. Dangerous.
The May 1 Massacre put a great deal of fear into the silver market, psychological damage that will take more time to repair. In addition, the margin hikes forced many traders to at least reduce or even eliminate positions. Pure manipulation, a conspiracy if you ask me. What we are seeing now is short covering as the bankers reach max pain.
Silver should be north of $130/oz (easily). Wait for it. Be right and sit tight.
imho, but never take advice from a stranger as gospel.
(I'm pretty much all in metals now, no margin.)
There is a difference between buying a gram of gold as opposed to an ounce: the markup overall per gold obtained is crazy high if on gram bars versus ounces.
Well, the comex is running on thin air right now.
And the future contracts to 2015 are still selling below spot. Like nobody expects the comex to be arround by then anymore....
Honest question: Why is my beloved Palladium (and Plat, to a degree) getting hammered while Au and Ag are doing what I'd expect in the face of the dollar plunge?
Don't get me wrong, I'm still plenty in the black, but shouldn't these havens move together?
Guess I'll buy me some dip...at least I can still scare it up in physical form.
Palladium and platinum are impacted greatly by their industrial demand, and industrial demand...
Of course, that doesn't mean they aren't money.
Thanks. Makes sense; no cars, no catalysts.
Can really only mean they don't want little people to get a hold of any more shiny stuff they will need to prop up their upside down pyramid. Guess they know more than we do about returning to barter based currencies sooner than..... woa, that was fast.
Obviously IB only on this move.
If it was across the exchanges the big boys would have already unloaded this morning ahead of the announcement
Gotta love it!!
Gold and Silver are on a elevator goin up. It seems this is a day that a trader cannot lose money in physical metals =)
Silver moves only 5% in one month and they increase margins. S&P falls 10% and they never touch them. Hmmmmm! Not even mentioning the 100% up move in the S&P's in one year - and no change in their margin.
Hey guys.I'm new at all this and trying to learn. Can anyone explain to me why they do this margin increase thing to silver but not gold scince the trends are almost identical? Thanks.
Comex is finding physical silver very hard to come by. Have to force traders out of thier positions with margin hikes.
Has anybody seen robo? He has been missing in this recent market "correction"
He was last seen heading to a meeting with Jim Sinclair at which he intended to offer his sincerest apologies for badmouthing 'General Jim' over the past few years and to promise never, ever again to talk shit about things he doesn't understand.
Patience Dr. Engali, it's not easy to find a stock that has outperformed XAU the last trading sessions..
he was last spotted on the corner of Hollywood and Vine wearing a tank top and tight jeans trying to raise a little cash to buy the dip on BAC and F.
Unfortunately for him, after three consecutive price cuts for his "services"...there are still no takers.
At this point, I wouldn't be surprised to see them hike margins for /ES short positions and reduce them for /ES long positions.
What the hell...why not? Let your ponzi freak flag fly for all to see.
USA cannot hinder investors from purchasing physical silver though. Price on Physical is in the 55USD - 60USD range. www.ebay.com.
Not sure where you are looking on ebay, but I've found ASEs in the 45-48 range pretty consistently over the last week or so.
Canadian Maple. Chinese Panda. Australian etc. 45USD - 50USD range is American Silver Eagle.
Use this link for some handy-dandy search algos:
http://www.24hgold.com/english/home.aspx
Chart is at the bottom of the page "Let's get Physical".
Hey guys I'm new here and trying to learn. Can anyone explain to me why they do this margin hike thing to silver but not gold. Since the trends are nearly identical.
Margin hikes aren't worried about trends. Even though Gold and Silver are trending the same way. Silver is much more volatile and has the ability to blow out more underfunded traders.
Silver is about 2x more volatile then gold and has about 2.8x more margin requiremnt
.
Double post
fixed.
Five Reasons Canada's Western Provinces are the Safest Quadrant on our Planet... http://seenoevilspeaknoevilhearnoevil.blogspot.com/2011/03/why-canadas-f... A Traumatic August in Italy and Spain ""The narrative of 1931 is already well-known to readers. France sabotaged a rescue of Vienna’s Credit Anstalt because of strategic disputes with Germany. This set off a financial chain reaction..."" http://seenoevilspeaknoevilhearnoevil.blogspot.com/ OT: Hilarious 2 Min Video... http://www.youtube.com/watch?v=W0Uju3tYS2s
Anyone still investing in Silver after May are prepared for margin hikes. May was a one trick pony.
These traders will pay the hike and demand delivery. Shorts be Damned!
Having added 60 oz to my pile @34, I should send a thank you note for the sale prices.
Once the 11Am buy programs kicked in the market has been insane . I don't want to know what the fractal algo analysis is going to look like today. The big guys must be scrabling to reprogram the systems that are buying the dips the big guys don't want to buy.
Ah haha hahahah Dow, Nasdaq, and S&P are about to break positive!!!!!! Daq down 1, Dow down 24, S&p down 2!!!!
This reject market needs to be stopped.
You ain't seen nothing yet. Looks like we are going to get more of that delicious artificial volatility leading to a COMEX default. Still a 75% chance of it happening by the end of the year.
Remember folks, higher spot prices save the COMEX, lower ones destroy it. It's simple supply and demand, and no matter what the COMEX and Co does to the paper price, the demand for physical remains high, nigh insatiable. Whether from "idiot doomers" like me, or from "idiot doomers" like the Chinese, Indians, or Arabs.
Well, it's good to see that in your absence, you've come to terms with being a "doomer idiot."
You've been predicting a Comex default for 3 fucking years. Last winter, you thought it would happen in the Spring. In the Spring, you thought it was early summer. Then it was July, at the latest. Then, when everyone started calling out your bullshit, you back-peddled and gave July a 50/50 chance. And, of course, now the default will occur anytime before the end of the year. In the winter, you will push it out to Spring.
Here you are spewing the EXACT SAME BULLSHIT THREE YEARS AGO!
http://www.ronpaulforums.com/showthread.php?170701-COMEX-is-in-trouble&p...
You've had this bullshit, rolling prediction every month for 3 years!
Wow, aren't you proud of yourself, as were Noah's contemporaries.
Nice to see the fanbois are still sexually obsessed with me.
Also, nice set of lies you have there. I thought it would default three years ago, and the next time I spoke of it was last winter, shortly before they started DEFAULTING. Now they have defaulted on every single delivery month, but it isn't really a public default, as the parties being defaulted on are getting cash and not talking about it, and queuing up to do it again the next month.
But hey, you keep up your lies. If you repeat them often enough, I'm sure SOMEONE will believe them.
Also, I love how you have totally failed to mention the price action over those last three years, which have lead to me becoming fabulously wealthy. No no, don't talk about that.
Silver spot 2008 $14-$16 /oz. or (about $19/oz SAE)
Silver spot 2011 $41/oz. or ($46/oz SAE)
These numbers speak for themselves as the government continues on the exact same path that got us here. Makes predicting the future a little easier.
Overspend, increase debt, (metals go up), repeat.
There has been no volatility with the price of silver.
What there is is a naked attempt by the criminals to suppress the silver price. That is all.
Wait...Interactive Brokers has customer service? Holy shit. I've been with them for years and never noticed. Thanks for the heads up TD!
Fixed.
Tyler, Interactive Brokers hiked silver margins above the exchange requirements Sunday night 7/31, we reported this here:
http://silverdoctors.blogspot.com/2011/08/interactive-brokers-raise-silver.html
This appears to be further dissemination of this same information, or is it an additional margin hike?
The statement is the same from the one given Sunday night.
hike it to 100% i dare you
FUCK THAT!
FUCK THAT!
FUCK THAT!
FIGHT! FIGHT! FIGHT!
And FUCK COMEX fucking illegal rule-change-ups in the middle of the motherfucking game!
FUCK THAT!
Da roolz are, dey make da roolz.
Don't play their game, get physical, starve the beast.
They fuck you, you fuck them harder, where they live.
Cure for what ails ya:
Buy physical.
This isn't the COMEX, it's Interactive Brokers, FYI.
COMEX margin hikes aren't far behind.
They see the bullish action coming back into silver. It's a buying signal to me. Once silver gets past $ 50.00 oz it's going to be a race to $ 75.00 oz.
They see the bullish action coming back into silver. It's a buying signal to me. Once silver gets past $ 50.00 oz it's going to be a race to $ 75.00 oz.
Makes no difference to me, do not care about day to day manipulation. I know where this bullet train is headed.
Well, anybody who wants to buy their 'silver' through interactive brokers needs their f*cking head examined
But they'll lend you a million dollars at less than 2% if you put $100k in your account! It's practically free money! hurr...
I would be surprised to see CME hike the margin. I thought that would drive traders to Hong Kong exchange.
Bullish for JP Morgan?
JPM is busy shorting oil.
Bullish for JP Morgan?
Who cares?
Nasdaq positive!!! Go PPT GO, Go PPT GO!!!!
Green Mountain Coffee up $4.75!!!
You can't write comedy like this.
At the moment, I see 25920 initial (that's higher than comex) and 16000 maintenance (same as comex). Those seem like the same numbers from a few weeks ago. IB keeps sending out the alert on silver margins but not actually changing anything. Maybe this time will be different?
Time for another Silver Bears cartoon?