silver gets a 5th margin hike!

[Large Sarge]

effective 5/9/11

trying to put out the silver forest fire, using a few garden hoses and plastic buckets..... expecting Comex to replenish itself

http://www.zerohedge.com/article/cme-margin-hike-4th-and-5th-charting-parabolic-rise-cme-silver-margin-hikes

[steyr_m]

effective 5/9/11

trying to put out the silver forest fire, using a few garden hoses and plastic buckets..... expecting Comex to replenish itself

http://www.zerohedge.com/article/cme-margin-hike-4th-and-5th-charting-parabolic-rise-cme-silver-margin-hikes


I'm not understanding what's going on. what is a "margin hike"

[madfranks]

effective 5/9/11

trying to put out the silver forest fire, using a few garden hoses and plastic buckets..... expecting Comex to replenish itself

http://www.zerohedge.com/article/cme-margin-hike-4th-and-5th-charting-parabolic-rise-cme-silver-margin-hikes


I'm not understanding what's going on. what is a "margin hike"


Let's say you have $100,000 in paper silver, and on paper you control much, much more silver than the $100,000 could buy you in physical. The Comex responds to the higher prices of silver by raising their margin, or price, on your paper silver. You get a call saying "give us an additional 12.5% ($12,500) to keep your account current". You don't have an extra $12,500 laying around, so you can't meet their "margin call" and are forced to sell your paper silver. Lots of selling pushes the price down, which is what we're seeing.

I know that's probably a very crude manner of explaining it, but I hope that helps.

[steyr_m]

effective 5/9/11

trying to put out the silver forest fire, using a few garden hoses and plastic buckets..... expecting Comex to replenish itself

http://www.zerohedge.com/article/cme-margin-hike-4th-and-5th-charting-parabolic-rise-cme-silver-margin-hikes


I'm not understanding what's going on. what is a "margin hike"


Let's say you have $100,000 in paper silver, and on paper you control much, much more silver than the $100,000 could buy you in physical. The Comex responds to the higher prices of silver by raising their margin, or price, on your paper silver. You get a call saying "give us an additional 12.5% ($12,500) to keep your account current". You don't have an extra $12,500 laying around, so you can't meet their "margin call" and are forced to sell your paper silver. Lots of selling pushes the price down, which is what we're seeing.

I know that's probably a very crude manner of explaining it, but I hope that helps.


yeah, that helps.... Thank you; and there's supposed to be another margin hike on Mon? Time to buy will be Mon/Teus.....

[ximmy]

effective 5/9/11

trying to put out the silver forest fire, using a few garden hoses and plastic buckets..... expecting Comex to replenish itself

http://www.zerohedge.com/article/cme-margin-hike-4th-and-5th-charting-parabolic-rise-cme-silver-margin-hikes


I'm not understanding what's going on. what is a "margin hike"


http://www.youtube.com/watch?v=iUSaMYqDPJg

[JJ.G0ldD0t]

yeah, that helps.... Thank you; and there's supposed to be another margin hike on Mon? Time to buy will be Mon/Teus.....


Ohhhhh man

I hadn't heard about that one- I was headed to the coin shop this afternoon.
I was hoping 37 would be at least a soft bottom. Guess we're looking at 33-35 then huh?

I'll put that trip off then. thanks.

[Son-of-Liberty]

There is still another margin hike coming? WTF

Just hope there is still physical silver available when the price bottoms out.

[Neuro]

Mindblowing, any crazy conspiracy theorists out there, that thinks they are out to protect JPM and the other huge shorts... The longs are getting grilled! Soon time to start buying! ;D

[Son-of-Liberty]

Mindblowing, any crazy conspiracy theorists out there, that thinks they are out to protect JPM and the other huge shorts... The longs are getting grilled! Soon time to start buying! ;D


This is obvious manipulation. They are trying to flush out all the longs and it seems to be working.

It may be time to buy soon but will there be any physical silver available?

I noticed Kitco's stock is being rapidly depleted, my local dealer has a 4 month wait for delivery. Not too many other good options for silver here in Canada.

I decided to pull the trigger on a little last night to make sure I could get some before stocks were depleted. Will buy more if price continues to fall and there is any to be had.

[bl96S5eu]

Not too many other good options for silver here in Canada.
What are the duties & taxes on bullion ordered from APMEX? If ordering a moderate quantity wouldn't it make sense to buy from them during this dip?

[Ragnarok]

If it keeps going like this there will be an increasingly obvious disconnect between paper-silver and physical silver prices.

R.

[bellevuebully]

I think the miners are showing some resistance. Down 5%ish with silver down over 10%. Hmm. If they were overpriced they would be down 12-15.

Endeavour hit it's 100dma and bounced. Seems to me smart money is saying buy the discount. I'd like to see a down day on spot where the miners are green.....that would say a lot. I wouldn't doubt if we are close to that. We'll see.

By the time this shakes out, the only ones left in the futures will be well-funded money and users.

[bellevuebully]

Funny, the CME doesn't seem to be too worried about down-side speculation.

[steyr_m]

I guess the questions now are, how low will this go? Is it a confirmation that the hike will be in Mon? Will it be going back up? When?

[JJ.G0ldD0t]

grumble grumble... wasn't today supposta be a buy op day with that last margin hike going into effect??? :redfc

[bellevuebully]

grumble grumble... wasn't today supposta be a buy op day with that last margin hike going into effect??? :redfc


And all the bona-fide users said..."thank you!"

[Son-of-Liberty]

Not too many other good options for silver here in Canada.
What are the duties & taxes on bullion ordered from APMEX? If ordering a moderate quantity wouldn't it make sense to buy from them during this dip?


I might be wrong but I think I checked once, and they don't ship to Canada. Then again it could have been some other company.

[bellevuebully]

Not too many other good options for silver here in Canada.
What are the duties & taxes on bullion ordered from APMEX? If ordering a moderate quantity wouldn't it make sense to buy from them during this dip?


I might be wrong but I think I checked once, and they don't ship to Canada. Then again it could have been some other company.


Awoke had a post saying he got that Apmex solicitation email and he is Canuck, so they must.

[Son-of-Liberty]

Not too many other good options for silver here in Canada.
What are the duties & taxes on bullion ordered from APMEX? If ordering a moderate quantity wouldn't it make sense to buy from them during this dip?


I might be wrong but I think I checked once, and they don't ship to Canada. Then again it could have been some other company.


Awoke had a post saying he got that Apmex solicitation email and he is Canuck, so they must.


Looks like you are right just checked the shipping and they do.

[Son-of-Liberty]

I'll have to check into possible taxes or duties a bit more. It looked like bullion was GST, HST exempt but I am still not sure about duties. They did mention that silver shot was not GST exempt.

[bellevuebully]

I'll have to check into possible taxes or duties a bit more. It looked like bullion was GST, HST exempt but I am still not sure about duties. They did mention that silver shot was not GST exempt.


Have you ever looked into Wolrdwide Precious Metals that Harold Segal plugs? I think it is his company, but I am not sure. Just curious.

[Son-of-Liberty]

No never really had to look too hard to find silver.

[DMac]

If it keeps going like this there will be an increasingly obvious disconnect between paper-silver and physical silver prices.

R.


Kitco
Bid Ask
38.09 38.29

Apmex
Bid Ask
38.16 38.21
Current price for 1 SAE
$45.00

Ebay
Recent completed listing prices SAE, random years
$55.00
$46.00
$48.01
$55.99

I think the disconnect is here. $38 spot price, SAE premiums ranging from $7 - $15+.

[bellevuebully]

If it keeps going like this there will be an increasingly obvious disconnect between paper-silver and physical silver prices.

R.


Kitco
Bid Ask
38.09 38.29

Apmex
Bid Ask
38.16 38.21
Current price for 1 SAE
$45.00

Ebay
Recent completed listing prices SAE, random years
$55.00
$46.00
$48.01
$55.99

I think the disconnect is here. $38 spot price, SAE premiums ranging from $7 - $15+.

D....I've been watching the premiums at Kitco. Posted the changes about a week ago. At Christmas the premiums on Maples at Kitco were around 3%. Philharmonics were less. Last week, I couldn't compare Maples because there were none, but Phils were selling at almost +10%. Premiums are climbing substantially.