Increased margins and the dump last week

[bellevuebully]

Interesting development last week with the increase in margin requirements. Surprised nobody commented.

Not hard to read between the lines on that one, imo. Silver reaching for 30, and then a margin increase of 30%. Even stranger was the reason given.....silver getting bubbly. Give me a break. Gold at ~50% above nominal highs, and silver ~50% below nominal highs and silver is in a bubble? Nice of them to be so considerate to us, lol.

For anyone (Stackerken may be one) who has made purchases recently on higher prices and might be concerned if they bought on a high, I would say that the recent raising of margins and equating it to silver being in a bubble is laughable.........unless you hold a short position. :lol

Sit back and enjoy the ride. Best wishes to all.

[bellevuebully]

Ok....how long before another mid-day increase in margins occurs? :oo-->

[gunDriller]

at first it seemed like a real big deal, because the market price dropped so abruptly in silver. ($5000 to $6500)

but when they did it the second time ($6500 to $7250, i think) it didn't have such a big effect.

i was surprised by the effect it had on silver - it dropped $2.

it crawled up to $29 and then went cliff-diving.

but the dog has climbed back up the cliff.

http://i.ytimg.com/vi/3TnWlIU98f0/0.jpg

[osoab]

Ok....how long before another mid-day increase in margins occurs? :oo-->


Good thinking b.b. I would hope that those on margin would have a little more in their accounts to keep from getting squeezed now. If two margin increases in a week were not enough of a lesson, I don't know what else could be.

Now, would they raise gold before silver? Gold is getting close to the 1500 mark and the margin increase on gold was paltry compared to the increases in silver margin.

[bellevuebully]

Now, would they raise gold before silver? Gold is getting close to the 1500 mark and the margin increase on gold was paltry compared to the increases in silver margin.


To me, it is obvious what happened. Margins in any market have never been raised mid-day. That is the first flag. The second is the ludicrous notion that silver was frothy when it was lagging behind the nominally high price of gold.....gold 50% above old high, silver 50% below. I'd say someone is very afraid of having to deliver on an avalanche of deliveries. I would not doubt another rise in margins. In the long run, that will be great though, because having the price rise in the face of lower open interest indicates a market diverging from a paper trade, imo.

On another note, I can see the miners having some spectacular action over the next 2 quarters. These guys are gonna be money machines. IMO, this is a multi-generation opportunity to make money that many common people never thought they would ever have the chance of ever seeing. I can see a well balance portfolio of several seniors, juniours, explorers and specs returning (conservatively) 5-10 times. And truthfully, I think that is very conservative. Again, mho.

Have a good day.