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"CME confirmed silver margins raised from $5000 to $6500 (30%) effective 11/10 settl - no other metals affected"

 

Presumably, this affects the maintenance margin. And is a lovely way to kill paper longs.... but not shorts, of course.

 

This is also the last remaining self-regulating way for the market to tell the genocidal lunatic in the Eccles building to go fornicate himself, and his excess liquidity.

 

 

more info:

http://www.cnbc.com/id/40095040

The reason cited for the increase was a “…normal review of market volatility to ensure adequate collateral coverage…

 

Michael Shore, a spokesman for the CME, said the exchange evaluates margins from time to time and they often change—nothing unusual. :lol:

 

New Tier 1 “Spec” Positions will require an initial margin of $8,775, up from $6,750 currently. New “maintenance” margin calls for those positions will rise to $6,500 from $5,000 currently.

 

Margins on Tier 2 and 3 “Hedge/Member” Positions will go from $5,000 to $6,500 for both new “initial” positions and also, for ongoing “maintenance” margin calls.

 

Margins on e-mini silver futures have also gone up across the board, from $1,350 to $1,755 for “initial” positions for “Spec” traders and from $1,000 to $1,300 for “Hedge/ Member” positions. “Maintenance” margin calls for all have gone up 30% from $1,000 to $1,300.

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"CME confirmed silver margins raised"

 

Can someone please explain what this actually means?

 

Thanks!

 

If you want to buy a futures contract you have to put down an initial deposit in order to initiate the trade. The deposit is called margin in industry parlance. So whereas the previous deposit was $5000, it has been increased to $6500. This ties up more working capital of those that are trading, and can have a dampening effect on prices and volume. Interestingly enough I was considering buying a mini future contract in silver just before it took a tumble today. I don't normally trade futures and I sure am glad I didn't make a special exception this time!

 

Just when it started to look like a penalty kick with no goalkeeper...

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If you want to buy a futures contract you have to put down an initial deposit in order to initiate the trade. The deposit is called margin in industry parlance. So whereas the previous deposit was $5000, it has been increased to $6500. This ties up more working capital of those that are trading, and can have a dampening effect on prices and volume. Interestingly enough I was considering buying a mini future contract in silver just before it took a tumble today. I don't normally trade futures and I sure am glad I didn't make a special exception this time!

 

Just when it started to look like a penalty kick with no goalkeeper...

 

Probably a stupid question. What system would you trade that over?

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I make that about an 8% swing over the trading day.

Pretty volatile!

 

 

The market set the price of silver at around $30 per ounce. The comex then manipulated the price down. There can be no arguments. This was open interference with price discovery. Can you imagine the outcry if this was done to key stocks?

 

But I don't think it will work this time. The huge number of naked shorts shows us that the price rises were not caused by a credit fueled bubble. No, this has all the hallmarks of a short squeeze. In fact it looks like it could turn out to be the mother of all short squeezes.

 

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i've seen these sort of bars before and they are always fake - avoid stuff like this from china.

 

A bit of info for GEI on fake silver, ebay and China.

 

http://www.china-mint.info/fake-coin-images.html

 

http://www.china-mint.info/fakechinesecoinsellers.html

 

http://chinese-coins.blogspot.com/2009/01/...-with-only.html

 

Finally images of fake bars can be seen at

 

http://about.ag/LeadFilled100OunceBars.htm

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Just bought another £10k of silver.

Guaranteed for the rocket to turn into Challenger :)

In time I am sure you will feel fine about your purchase. I would prefer to see if we don't have a correction around these levels. Maybe average the 10K in over a few weeks?? I think silver is more like the Big Dipper rather than Challenger. :) Pick your moments and you won't end up puking up. Still the overall direction is upwards, I hope...

 

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In time I am sure you will feel fine about your purchase. I would prefer to see if we don't have a correction around these levels. Maybe average the 10K in over a few weeks?? I think silver is more like the Big Dipper rather than Challenger. :) Pick your moments and you won't end up puking up. Still the overall direction is upwards, I hope...

I'm also not interested in selling for at least 10 years but I might exchange some for gold along the way!

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In time I am sure you will feel fine about your purchase. I would prefer to see if we don't have a correction around these levels. Maybe average the 10K in over a few weeks?? I think silver is more like the Big Dipper rather than Challenger. :) Pick your moments and you won't end up puking up. Still the overall direction is upwards, I hope...

 

£10k WAS my averaging in :)

 

Anyways, my personal contrary indicator is working fine. A healthy 6% off since purchase!

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Blimey! Obviously we are in different leagues! I haven't had that kind of money to average in for a long time.

Wow! Despite recent fall in silver I just popped over to CID for a look around and 1Kg coins are 689 quid tax incl!! Used to be 245 a few years ago.

Ho hum...

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Wow! Despite recent fall in silver I just popped over to CID for a look around and 1Kg coins are 689 quid tax incl!! Used to be 245 a few years ago.

Ho hum...

 

It's interesting. There does seem to be an increasing premium for physical (both gold and silver). Unclear if this is a supply fundamental or just profiteering. I guess time will tell.

 

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