Precious Metal Margin Warfare Jumps The Pacific, As Shanghai Hikes Gold Margins For Second Time In A Month, Prepares To Crush Silver
Wondering why gold dropped by almost $100 today? Wonder no more: today the Shanghai Gold Exchange lifted gold margins for forward contracts the second time this month to 12% beginning on Friday, in a move that is starting to resemble the CME's vendetta with silver back from May. Should we expect 3 more SGE margin hikes in the next 2 weeks? Or will the CME rightfully accept the baton and do everything in its power to dent the parabolic rise in the alternative reserve currency? We are cautiously looking at what the CME will do today and will advise readers. In the meantime, here is what else happened in Shanghai: "China’s main precious metals exchange will also widen daily trading limits for those gold contracts to 9 percent, up from 7 percent, the SGE said on its website on Tuesday. The contracts to be affected include Au(T+D), Au(T+N1) and Au(T+N2). This is the second time the exchange has raised collateral requirements on gold forward contracts this year — both times in August — as international gold prices hit a series of record highs over the past few weeks, boosted by a flight to safety on worries over a stalling U.S. recovery and crippling sovereign debt in the euro zone. Shanghai Gold T+D contract lost half a percent to 387.8 yuan per gram, or $1,884.47 an ounce, down from an intraday high of 391.9 yuan when the market opened."
More from Reuters:
“Gold prices on the global market have been rallying strongly and at an increasingly faster pace. The margin hike is a pre-emptive move in case prices crashed and caused great volatility in the market,” said Li Ning, an analyst at Shanghai CIFCO Futures.
At a time of market turmoil, exchanges routinely increase the margin requirements to cover the risk of a default.
With the SGE’s margin requirement exceeding its daily trade limit, the hike seems aimed at squeezing some speculative froth out from the market, some traders said.
The Shanghai Futures Exchange could raise margins on its gold futures contract soon too, said Li.
The new margin would require an additional 490.4 million yuan ($76.6 million) to be posted to the exchange.
Trading volume on the most popular gold forward contract hit a three-month high of 26,032 grams on Aug. 11, and eased to just shy of 20,000 grams on Tuesday as the exchange finished the afternoon session. The average volume so far this month stood at 14,999 grams, compared to a daily average of 9,138 grams in 2010.
The exchange also said it was closely eyeing silver contract price movements and would consider raising trading margins, transaction fees or costs of rolling over forward contracts should volatility persist.
At least the cause is now known. And when the effect from the SGE has been priced in and diluted, it will then be the turn of the CME. Unless of course it is much sooner.
That said, to all those who have been looking for a dip in gold, here it is.
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Volatility on silver? WHERE? It's not there. The only ones creating volatility are the bastards at CME and JPMorgue! Hike requirements on THEM...
"Hike their requirements indeed."
Anyone know how long Turd's site has been down?
Trying to protect their dollar holdings?
PM's on SALE, Bitchez!!!!!
Everything must go!
Physical Only !!! Too many HFTs manipulating everything.
The HFTs have one goal at this level. To take your money before correction. The can see every dollar going in.
Hey, anyone notice how Hurricane Katrina started out? Follow the path. Irene starting similar, no real Hurricane has hit East Coast in over a decade. Im from MA, Cape Cod. Everyone here has become stagnant in Hurricane preperation over the past decade. Im predicting another Captains Hook Dirty South style, but the East has felt invincible till todays quake so it would be ripe for the picking. Stay long insurance if you have any, and buy some supplies if youre on the East Coast JIC SHTF but dont count yourselves out in the Gulf. If youre not prepared everywhere for everything youll end up with a bloodu cum dumpster for an ass these days. BTFD.
I was in Provincetown at the tip of the cape when hurricane andrew hit in 1992. It was like the end of the world.
The site went down at approx 4:30, about 10mins after filing my latest post which discussed the impending margin hikes that I raised as a possibility last evening. Massive DoS attack. Still trying to get it fixed.
Coincidence???
Does that mean you've got CIA's attention from now on?
No coincidence Turd. The alternative reserve currency will be beat down at all costs, right to the end.
However, what I like about these margin increases is that each progressive increase leaves stronger and stronger hands in the game, and each progressive increase has marginally less and less of an effect. It will go to 100%, for certain.
At any rate, since I don't have a bucket of cash, as I accumulate FRN's, I hold and wait for times like these, then buy and stack. Like I said before, the Blythe monkey machine is wholly lacking any long term vision. For that, I am grateful.
I like what Nope seems to be saying.
Parabolic prices are dangerous, not only because prices move too fast and gets overbought, but more importantly, it allows the weak hands to stay in the game and clusters stone cold killers on the other side of the trade.
When anyone says gold prices are parabolic, and imply they are dangerous, point out that margin hikes don't factor into the usual trader's rule of thumb. These are not speculative parabolic prices, regardless of the price curve.
Correct. Been watching the manipulation for some time. I was at my terminal watching PM prices that Sunday night in May when markets were closed and the raid began. Of course, markets needed to be closed. Can't have an open market to operate within, that wouldn't be fair capitalism, now would it?
Of course, many were kicked out of PM's that night. But only kicked out of the paper game that Comex was trying to control. My physical PM's went no where. In fact, I bought more, as did others I know. The manipulation and margin increase mantra is having the opposite effect of what is desired, as it only enables the strong hands to acquire more. I know one individual who sold all his gold after that raid and replaced it with silver, reversed back to gold, then back to silver......
There are many out there smarter than the CME and JPM. Manipulation will only work if you aren't in the physical game, and actually helps those who are in the physical game.
BTFD. They are getting desperate.
"There are many out there smarter than the CME and JPM. Manipulation will only work if you aren't in the physical game, and actually helps those who are in the physical game."
Dats a fact ;-)
Yup! Raising margins just forces the trade into stronger hands. Where's the problem? Nary a peep of this on CNBS today, just a bunch of yelling about how gold is getting crushed. No real explanation of why other than its "parabolic moves" being unsustainable. That's code for "bubble".
It's a momentum play. The only way to get it to show momentum down is to let it fade up or run up quickly. Which they do. They keep trying to focus the momentum in a downward stage but to do it they have to let the upward stage have it's show. They have to make it bigger and bigger. I mean look. Get people to buy at 1900 and then wake up next day to 1840 gold. They'll be doing it bigger. Get peope to buy 2300 to wake up next day to 2180 gold.
"Where's the problem?"
Dead on, center mass Rocky...lol.
I'm comfortably in the black (in their fiat terms)...they never ask, how did the dollar fare today? ;-)
sucks
Thanks Turd, I was starting to go through withdrawal. I dont believe in coincidence anymore, keep up the good work!
Maybe its not an DoS attack, just plenty of people informing themselves ;- )
Congrats, your blog is important enough to target now! Really doubt it's a coincidence.
this article is nonsense...gold was technically overbought and there were a number of us looking to short it. I had planned to enter short today but the drop began overnight and I just couldn't find my price
Agree. Did you catch that turn of phrase: "the CME's vendetta with silver ...." ?
While I was expecting you to blame the gold drop on black people, I was pleasantly surprised to see you didn't.
Yes, indeed, this article is utter nonsense.
This article also flies in the face of all the doomer goons who claim that gold is going parabolic due to a loss of faith in the currency. If/when gold is being hoarded because people are loosing faith in their currency, then the price cannot be easily manipulated by crushing specs with stupid Shanghai margin hikes. When that news was released, gold only fell $30, then it consolidated in a range for 9 hours, before falling as the day was closing.
http://www.marketoracle.co.uk/Article30030.html
i blame black people for things they are to blame for, moron.
As far as faith in the currency, that's horseshit so far. I expect that somebody has been printing somewhere, explaining gold's strength in all currencies. Or maybe everyone is.
Hahaha black people are so fucked up! Never will they get their shit straight.
Anyone name ONE country that has a successful black population?
South Africa.
80% black African, and an incarceration rate less than half the US.
Was white first. Been downhill since Mandela. Just because the police are ineffectual is no reason to tout a hell-hole. Just ask my new Afikaner new neighbor.
Your pussy is awesome, I hope it continues to grace this blog with its presence.
I'm going to delete my own comment, Missy, in deference to your more awesome reply.
And where every white family has a razor wire fence around their house.
Try again, I have been to South Africa.
What WilliamtheBastard fails to mention is that EVERY nation on earth has an incarceration rate well less than half that of the USA (shocking, but yes, it is true). In fact, the incarceration rate in South Africa is above the world average.
William, you truly are a bastard. Now go change your handle once again so that you can pretend you are a new poster, and not the same old piece of shit posting under his 14th name here.
.....EVERY nation on earth has an incarceration rate well less than half that of the USA (shocking, but yes, it is true....
Not true. Russia is quite close to US rates, ~85% there. And Russia is virtually all white.
Secondly, I'm not "WilliamTheBastard."
You guys really are a despicable, loathsome group of people. Bigotry, racism, and bloodlust is just part of the doomer goon culture, isn't it?
So I failed to remember the ONE exception to my earlier claim about the shameful and shockingly sky-high US incarceration rate, which is only the exception that proves the rule. That still takes nothing away from the fact that your statement regarding South Africa's incarceration rate was disingenuously misleading, as is virtually every one of your truth-twisting and hate-filled comments here.
Go tell it to the the guy yelling at pigeons in the park --- we all know just who and what you really are, you vile, despicable, statist, lying, pro-Establishment sack of shit and hate-filled troll.
If you are really trying to fight racism, I think it would be best to do it without all the hatred. Why should anyone listen to insults and heckling?
I don't approve of the stance of many here regarding race. But many have their reasons for it. Maybe they have been hurt by someone of another race and they over generalized. In my case my family is racist and it does not matter how much I argue. I still love them, no other way to be.
I'm not suggesting you have to love people here (fuck, I can be a real bitch at times) but you would be more convincing to someone like me if you were not spewing hatred all over the screen when you type. People come to the conclusions they come to. Until you take the shame away, there is no chance to heal it. In dissecting my own beliefs, I had to see I inherited it from my family, and it did not mean I was evil. Once the shame is off it, I can look soberly at my beliefs and see what is true and not true vs. blindly defending a point of view I had years invested in.
Of course it helped that I had the priviledge to have people around me from other races that loved, accepted, and at times defended me.
Love does that.
You ole softy. I knew it.
UR2SWEET!
MsCreant
On virtually all occasions when someone presents an argument or facts which run counter to the ZH groupthink, it is met with extreme hostility and antagonism. I'm not sure if this is a "doomer" thing, or a libertarian thing, or just a "ZH fight club" thing, but it can't be denied. Almost without exception, opposing viewpoints are met with vulgarity, hostility and narrow-minded fanaticism which discourages anyone from making counterpoints, unless they're looking for a fight. Say one thing critical about silver, gold or Ron Paul and watch the sneering jackals circle you with foaming mouths and shit in their palms.
Besides, do I really care if I offend a bunch of racist and bigoted pigs? Do I really care if I offend doomer goons who take delight in watching the world burn? Um, NO - I don't.
Now, I happen to remember ZH from the early days when the community here was full of incredibly intelligent people. In my opinion, when Tyler started pandering to the silver goons last summer, the intelligent ones got replaced with doomer neanderthals who operate mostly with their lower brain stem. And this place hasn't recovered since.
All I'm trying to do is make it increasingly difficult for the goons and super-pigs to post their tripe around here. Perhaps, then, it'll make room for the smart folks who got chased out by the jackals. If Tyler tells me to tone it down, I'll respect it and comply. Until then, I will continue to call out the bullshit.
No, you lying shit. You get attacked when you LIE about those things. You are a known liar. When you aren't lying outright, you are warping the truth, like trying to claim that Ron Paul was somehow owned by the banks, even though they contributed less than a quarter of a percent to his 2008 campaign.
You can get the fuck out of here, you pro-tool using motherfucker.
What a loathesome, illogical and hate-filled perversion of a human you are.
There is NOTHING in your posts but blanket generalizations, implicitly pro-Establishment biases, and a rabid and blind hatred for those who are willing to challenge and fight the power elite and their innumerable lies.
The simple fact is, WilliamtheBastard, you add nothing to any debate, but merely subtract from the levels of intelligence and civility (such as they might be) that already exist here --- just as you have done under your 12 other sock-puppet troll incarnations here.
Many different opinions are routinely responded to here with calm and rational argument. Your flaming and hate-filled rants, however, are only intended to incite similar negative emotions and kneejerk responses, and you have perfected such flaming to a fine art. You neither demonstrate respect nor do you deserve it.
Sadly he is very good at it too. Check out how much of the commentary on this post he has hijacked. The banks will give him a bonus this week and maybe send some coworkers for him, probably turning over stones to find them even now.
ZH from the early days, you say? What user name did you use then?
LOL!
WilliamtheBastard, you have just been hung by your own retard.
Come to think of it, Johnny Bravo once made a very similar comment. He sucked up to one of Tyler's responses to his nonsense saying he would "tone it down" if Tyler asked.
Makes one wonder. It certainly explains his inane hatred of me, if they are the same person.
The only thing that is regularly met with hostility is bullshit.
You made a good faith effort in your reply to me. I feel it. Thanks. I am afraid you also look like you have missed my point and you may have an agenda (conscious, as the guys suggest, or unconscious).
Sometimes you don't fight at fight club, you just watch and see where it goes.
Carry on Hitler smiley.
WTF...how about this: I was never hurt by anyone from another race. I can't see how you can say "reason" and then emotionalize in the same sentence...oh yeah, you're a woman.
I am stating FACTS, Ms. FACTS. Call them "hate facts," as I do...but they are still facts. And that is what unsettles you the most. There is nothing in error about any fact I have stated, yet they still seem rayciss. That would indicate that the problem is on your end. Facts should not cause you to have this sort of reaction.
I don't know wtf individuals or these people from other races have to do with the generalization. Individual cases say nothing about valid statistical generalizations (and the converse is true too).
Some of us DO NOT take one or two anecdotes and apply them as generalizations. In fact, I've known vastly more noncriminal black people than the opposite over the years, but this DOES NOT CHANGE the valid statistical generalization. It does not change that areas with high concentrations of blacks will have high crime rates. It does not change that black HS graduation rates are 50% or that herpes infection rates among black women are 50% despite the black women I've slept with not having been infected and the blacks I know all having graduated highschool.
It would be the height of idiocy to PROJECT (as you have done) the traits of the blacks or hispanics or asians or indians or anybody else that *I* know as representative of the larger trends of groups they belong to simply because MY situation is not typical either (nor is yours)! To understand larger trends, you must simply study them. I have known a couple of white murderers and one hispanic. Does this mean that homicides are 66% white and 33% hispanic-committed? Of course not. My personal situation is NOT representative and neither is yours.
And love got nuthin to do with that. Love away, but keep your ass out of black-concentrated neighborhoods if you want to stay unrobbed and unraped.
Says the bigot who hates all Chinese people.
Get the fuck out of here.
"You guys really are a despicable, loathsome group of people. Bigotry, racism, and bloodlust is just part of the doomer goon culture, isn't it?"
Don't be trying to make the doomer goon culture sound more attractive than it already is. It's too magnetic as it is.
"Cultured Doomer Goon", sounds like a future moniker for someone! :>D
You guys really are a despicable, loathsome group of people. Bigotry, racism, and bloodlust is just part of the doomer goon culture, isn't it?
comin' from the tool with the hitler mustache.
Don't you have another site to troll? How about Craigslist or 4chan?
Jews like to honor hitler. No other race or culture in history ever go so many miles out of one bad guy that they created. He probably killed about a million jews and starved about 200,000 and they padded the numbers like a central banker on cocaine.
Maybe all those other countries aren't overwhelmed with illegal criminal Mexican immigrants.
...because they gave up trying to prosecute rape.
I don't beleive in the race issue. It is an economic and education issue that affects social behavior for generations. Not with standing my contention, South Africa may have a low incarceration rate but they did have 17,000 deaths by handgun last year and 18,000 attempted murders which makes it #1 in the world. Watch your social stats.
then, to be blunt, you're both myopic and stupid. Both are probably willful.
Black violence rates are higher across all socioeconomic spectra...in fact, rich blacks have crime rates (and average IQs) pretty close to lower-rung whites.
Simple facts. Economics and education? Well, you might want to look at adoption studies where ghetto kids are adopted into upper class white familes. Do you suppose they tend to do as well as their adopted siblings who are naturally born from the parents or do you suppose they trend more toward their biological heredity? And, on the flipside, east asian kids adopted into white families (again, POOR AS SHIT 3rd world asian kids) tend to do...drum roll...BETTER than the white kids! Again, nurture or nature?
I've got bad news for you: it's the latter. Maybe it is epigenetic but it is STILL hereditary.
Shit like this pisses me off.
I'm from South Africa.
No I'm not white, nor black.
South Africa is fucked ok. There are no 'successful' black people. All the blacks who fought in the apartheid years have become the new masters. The power elite. All the poor blacks in the townships continue to stay there. Power outages are more common now than ever. Crime is through the roof.
The week I got carjacked 3 other people in my department at work got carjacked. I've had my car stolen twice (over and above the carjacking), my house broken into multiple times, a friend was kidnapped (before she managed to escape). And my experience is not unique by any stretch. We joke about it because we live through it, but put th very real friends and family who die in the back of our minds to stop being depressed.
Mandela was the only effective leader we had. Mbeki, Zuma and rest of the power elite are raping the country. We had a health minister that said, on record, that onions a a good cure for HIV. Fucking ONIONS.
Inflation is over 10%. marginal tax rates at a lofty income of $50k equivalent is 42%. Mortgage rates are 15%. VAT is 15%. Unemployment is on the order of 25% before the recession hit.
Non blacks can't get jobs because they're not black. Apartheid is back, but it's reversed. Like Ron Paul says, if debt is the problem why do you want more of it, so if apartheid is the problem why do we want more of it?
Everyone is entitled to their opinion but unless if you've lived there don't talk shit about an 80% black African country being 'successful'. It has nothing to do with being black, it's about government control of the population. The man in the street in South Africa is as fucked now as 40 years ago. Only now his ruler has the same skin colour, and he can't afford his electricity bill. You no longer work for the 'baas' now you just don't work, period.
Hey "broer",
Moved down south USofA in 2004. SAers here in gulf FL took me under their wing the first week here. Met the first by happenstance, and he brought me into the fold. Springbok shots, rugby, potjie, beer. and more beer. Fine group of "mates". They all came here on a green card; first step to US citizenship. Most if not all got it. Just wanted to tip my hat. They've told me the stories.
Friend's folks came in from SA for his wedding. First thing they asked me was if I could make them some chili. For huge meat lovers like you all, it was a hell of a compliment.
Cheers,
ChewButta
ROTFL...South Africa? With a homicide rate higher than that in IRAQ during the war? WTF are you smoking, crackhead?
DeathofJohannesburg blog...look at that shit...there is your success? Where?
Incarceration rate low because the police do SHIT. Murder rate twice as high as even Detroilet, and then some. South Africa WAS a success just like Rhodesia WAS.
montgomery county maryland.....oh wait does federal employment count?
not when the federal gov't disproportionately promotes blacks on the basis of skin color. The black middle class in the USA is an artificial gov't creation. And, Obama just froze hiring for white people. Well, he didn't say that, he froze hiring until more diversity could be promoted. Simple problem though is that blacks are grossly OVERrepresented on the federal payroll. In some agencies, they occupy half the positions (inc GSEs like FNM and FRE). But Mont Cty isn't majority black...PG might be and now it's a clusterfuck
I laughed out loud at your post, you're a true modern-day minstril m'boy! Keep jiving for me, I've always been fascinated by your depraved culture.
ERITREA.
Look it up.
NE Africa.
No.
You blame black people for all sorts of bullshit, and I repeatedly called you out on it. Your response is always the same: crickets.
you keep pissing into the wind against me RNR...you had your chance with the cards and blew it; just not fast enough.
You call me out on nothing, boy
<removed by the administration>
Max Fischer, Civis Mundi
I'm the only one on this forum that's had you tied to a rotisserie, lathered in bbq sauce, match in hand; just because you wiggled out of the rope while I was filling the kerosene tank doesn't mean shit.
Man to man... you know I got you. Nailed you. And I'll do it again.
No tricky roadrunner shit next time, barrister.
Smiley Stupid has officially lost touch with reality.
Took a while to find it but I understand now.
http://argos.zerohedge.org/article/full-criminal-complaint-and-affidavit...
Blame is for those who are far to cowardly, to accept responsibility.
When speaking about races, time fuels irresponsible blame.
Garnered misgivings are not readily forgotten.
Wow - you are stupid and full of shit!
are you talking to ME, jackass?
Gold had a 14-period RSI in excess of freakin 80. It was making a 2nd top on clear technical divergence from the previous one. Simply a matter of moving too far, too fast. In fact, I said this on the gold thread YESTERDAY. If you were paying attention, you could have made a lot of that worthless fiat which gets you more stupid silver Eagles yesterday than today
Wow - now you are even more stupider and fullerer of shit!
Yeah, you were going to short gold and then you realized just how stupid and full of shit you are!
Do not bother Trav.....they will never get it.
However, I am not convinced this run-up is over. You may yet get your chance to short it....
Yeah Travvvvvvvvvvvvv, dont bother - you are too stupid and full of shit!
@danger---get what? that weak hands have a part in the current run up, but that over a longer period of time the true value of gold and silver will be reflected in its continued rise as more and more physical will be purchased by the awakening world?
Do not get that gold can correct, just like silver.
People get blasted for suggesting such things.....even though they are true.
But just like that disingenuous, lying, pro-bankster shill Jon Nadler, you invariably and ONLY seem to post here to suggest, insinuate and warn that the price of gold is inevitably going to fall --- even as it continues its LONG TERM upward trend, mirroring the dollar's unbroken and accelerating fall. You seem to delight in naysaying gold's potential to save one's savings from inevitable and ongoing currency depreciation, and mislead and misdirect others away from it, rather than honestly leading them towards it. You, sir, are a gold-hating troll, as any cursory search of your posting record here will attest.
"stupid silver eagles" trav? what gives?
Anybody notice that Trav is perfectly reasonable most of the time, and very sharp I might add, and then he launches into SuperTrav and releases beat down on everything and everyone? Trav cannot be controlled. He is a force of nature baby.
I love what I love too Smiddy! Have you met Chumba yet? He is like that, quarrelsome and awesome!
I've enjoyed you around here. I have been keeping your point of view on Gold in the back of my mind when I consider what to do next. Not that I am sold you are right (I am sold on very little and stay, perhaps too much so, very open), but it is one of the hypotheses I am now running when I look at the landscape before us.
Thanks for your posts.
He is a force of nature baby.
So is diarrhea.
It's all about the meds, which ones he took and which ones he missed.
LOL...I like that.
But, the reality is that I go with the TRUTH irrespective of its popularity.
Look at my junk rating for suggesting gold was technically overbought...it WAS. It's inarguable that it was. It needed to correct.
These same idiots were frothing with mosely-claven over silver and MANY of us were warning them not to jump into that pool headfirst, but to wait a bit. And they bit our heads off. And then look what happened. The clavens were wrong, and they led fools off a cliff. Had those pumpers simply said wait for the correction, they'd have gotten their lemmings WAY more physical silver for their fiatscos.
ZH has its own orthodoxy and its own set of echoes in the chamber. At times I may hold a opinion (based on truth) which is consistent with this orthodoxy and at times I may not. It is not that I am being unreasonable; it is that you suddenly do not want to hear the truth.
They can't handle the truth!
No question gold market moved "too far, too fast". Retracements are good for overall health of a bull market. Back and fill is okay. Just remember our success depends on the stupidity and evil of government. If that is not a ticket for success none exists! Tuco
put my shorts back on this morn...
Kindly remove Jamie Dimon's cock from your mouth before speaking.