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
(9 votes)
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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.