It's Baaaaaack: Interactive Brokers Just Hiked Silver Margins

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Wed, 08/03/2011 - 11:03 | 1520643 Freebird
Freebird's picture

Silver volatile? She's been asleep since May.

Wed, 08/03/2011 - 11:06 | 1520678 redpill
redpill's picture

Exactly, what a bunch of horseshit.

Wed, 08/03/2011 - 11:17 | 1520747 slaughterer
slaughterer's picture

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.



Wed, 08/03/2011 - 11:21 | 1520764 EscapeKey
EscapeKey's picture

Meh. Makes no difference when you hold physical.

We all know where this train is heading, anyway.

Wed, 08/03/2011 - 11:35 | 1520818 bankrupt JPM bu...
bankrupt JPM buy silver's picture

Either I'm having deja vu, or I've seen this before two days ago when I wrote about it ;)



Wed, 08/03/2011 - 13:46 | 1521331 eisley79
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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 ....

Wed, 08/03/2011 - 15:24 | 1521669 tmosley
tmosley's picture

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.

Wed, 08/03/2011 - 16:10 | 1521824 DogSlime
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Well, I read that blog.  I think lots of people read that blog.  Please quantify "tragically unread".

Wed, 08/03/2011 - 11:26 | 1520788 HoofHearted
HoofHearted's picture

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.

Wed, 08/03/2011 - 11:26 | 1520789 HoofHearted
HoofHearted's picture

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.

Wed, 08/03/2011 - 14:02 | 1521406 CompassionateFascist
CompassionateFascist's picture

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.  

Wed, 08/03/2011 - 15:03 | 1521599 espirit
espirit's picture

Like a Boehner.

Wed, 08/03/2011 - 11:20 | 1520758 TheTmfreak
TheTmfreak's picture

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.

Wed, 08/03/2011 - 11:38 | 1520817 tekhneek
tekhneek's picture

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.

Wed, 08/03/2011 - 12:34 | 1520977 Reptil
Reptil's picture

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.


Wed, 08/03/2011 - 13:03 | 1521113 Hook Line and S...
Hook Line and Sphincter's picture

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.

Wed, 08/03/2011 - 14:53 | 1521557 Reptil
Reptil's picture

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. (?)

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.

Wed, 08/03/2011 - 13:20 | 1521197 KickIce
KickIce's picture

Because it's too expensive to silver plate tungten.

Wed, 08/03/2011 - 12:59 | 1521088 I did it by Occident
I did it by Occident's picture

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. 


Wed, 08/03/2011 - 11:06 | 1520680 Dr. Richard Head
Dr. Richard Head's picture

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. 

Wed, 08/03/2011 - 11:11 | 1520713 augie
augie's picture

I like where your head is at on this one. 

Wed, 08/03/2011 - 11:12 | 1520717 Mesquite
Mesquite's picture

Would love to convert that debt into traditional money...



Wed, 08/03/2011 - 13:08 | 1521134 Hook Line and S...
Hook Line and Sphincter's picture

and remember... there is no such thing as a premium. Fiat trades at a discount to Silver, NOT the other way around.

Wed, 08/03/2011 - 13:10 | 1521143 Gringo Viejo
Gringo Viejo's picture

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"

Wed, 08/03/2011 - 11:15 | 1520734 midtowng
midtowng's picture

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.

Wed, 08/03/2011 - 11:41 | 1520832 NotApplicable
NotApplicable's picture

As margins go to 100%, the opportunity costs of holding physical approach zero.

Party on.

Wed, 08/03/2011 - 13:06 | 1521068 Forward History
Forward History's picture

Very, very true. That beeping sound is me backing up the truck. Lift gate is down, boys...load up.

Wed, 08/03/2011 - 11:07 | 1520686 Quintus
Quintus's picture

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?

Wed, 08/03/2011 - 11:22 | 1520768 Tortfeasor
Tortfeasor's picture

No it isn't.  And no effect on the market.

Wed, 08/03/2011 - 11:08 | 1520694 mayhem_korner
mayhem_korner's picture

Yes, but they're using JP Morgan SSRI refills as a proxy.

Wed, 08/03/2011 - 11:14 | 1520729 Cash_is_Trash
Cash_is_Trash's picture

I wonder if this is contagious for Gold...

Wed, 08/03/2011 - 11:18 | 1520748 goldfish1
goldfish1's picture

Translate: Blythe sweatin it.

Wed, 08/03/2011 - 13:07 | 1521131 Cathartes Aura
Cathartes Aura's picture

JPM 39.52

Silver 41.85

Wed, 08/03/2011 - 11:03 | 1520644 buzzsaw99
buzzsaw99's picture

The PPT just kicked into action as well.

Wed, 08/03/2011 - 11:05 | 1520660 Iriestx
Iriestx's picture

$2.8t is going to buy a lot of equities.

Wed, 08/03/2011 - 11:07 | 1520684 redpill
redpill's picture

Ensign, MOMO drive warp 9, ENGAGE!

Wed, 08/03/2011 - 13:16 | 1521153 viahj
viahj's picture

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.

Wed, 08/03/2011 - 11:06 | 1520667 Cognitive Dissonance
Cognitive Dissonance's picture

Classic intervention.

Now if only the family intervention with my brother-in-law goes half as well. :)

Wed, 08/03/2011 - 11:49 | 1520862 Miss Expectations
Miss Expectations's picture

Good luck with your  "surprise party".  Typically, folks make a dash for the exits.  (I don't think silver scares so easily these days.)

Wed, 08/03/2011 - 11:07 | 1520687 WoodMizer
WoodMizer's picture

Did the PPT get new funding from the debt deal?


Wed, 08/03/2011 - 11:21 | 1520767 Quintus
Quintus's picture

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.

Wed, 08/03/2011 - 11:10 | 1520705 DormRoom
DormRoom's picture

PPT = China. 

Wed, 08/03/2011 - 11:03 | 1520645 MoneyWise
MoneyWise's picture

Market recover almost 100 points in few min?
Any news? Or just PPT pushing few buttons?

Wed, 08/03/2011 - 11:03 | 1520647 mayhem_korner
mayhem_korner's picture

Half life prediction - 3 hours.

Wed, 08/03/2011 - 11:08 | 1520695 MsCreant
MsCreant's picture

You really think it will last that long?

Wed, 08/03/2011 - 14:06 | 1521422 Troublehoff
Troublehoff's picture


Wed, 08/03/2011 - 11:04 | 1520648 Glasgow Gary
Glasgow Gary's picture

That message was delivered to IB customers yesterday, about 24 hours ago.


Wed, 08/03/2011 - 11:04 | 1520650 glenlloyd
glenlloyd's picture

Volatility....WTF.....what volatility?

Wed, 08/03/2011 - 11:13 | 1520719 Dr. Richard Head
Dr. Richard Head's picture

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.

Wed, 08/03/2011 - 11:20 | 1520756 Ryman1075
Ryman1075's picture

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.

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