CME Hikes Gold Margins By 22% Which Gold Ignores Completely Resumes Climb Above $1800

[Ares]

Just after hitting a new all time high of above $1815 in spot gold, the CME immediately sent out a notice to members advising that gold margins for Tier 1 members were increasing by 22% for both initial and maintenance positions, from $4,500 to $5,500. Unfortunately for the CME, this predetermined move was telegraphed to the market weeks ago, and with rumor 57 out of 22 finally turning out correct, this latest move only managed to push gold down modestly, and at last check was once again trading above $1,800. Just like all central bank interventions, which now have a half life between 1 hour and 4 days max, so this latest exchange attempt to subdue prices will fail spectacularly. Naturally, just like in the case of silver, this will merely embolden the CME to proceed with hike after hike, which in turn will kill speculative elements while merely reinforcing the strong hands. End result: in one month gold will be above $2,000 with almost 100% certainty.

In addition, the CME also hiked CHF futures by 443%, Yen futures by 25%, Ruble futures by 36%, as well as TEN, UBE and I3. The only margins that were cut were those of Uranium which dropped from 1320/1200 to 990/900 for initial/maintenance.

CME notice goes out at 6:31 pm, and gold promptly resumes upward climb:

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2011/08/Gold%208.10-2.jpg

http://www.zerohedge.com/news/cme-hikes-gold-margins-22-which-gold-ignores-completely-resumes-climb-above-1800

[Serpo]

End result: in one month gold will be above $2,000 with almost 100% certainty. quote

[JohnQPublic]

They did succeed in the short term with silver. It took several increases, but they finally put a temporary damper on the POS. There is so much momentum and SHingTF that it may not succeed with gold. I was wondering when they would start on gold.

[wrs]

Gold is up $150 in three days, the shorts are the only ones hurt by a margin increase. In London the shorts were wiped out on Monday morning.


London Trader continues:

“The physical buyers still have not been filled and they are getting nervous. The buyers in size have not been filled and they are underpinning this gold market. If gold pulls back the buyers will get some fills, if not they are going to have to start chasing this market. In fact, don’t be surprised to see a $100 move in gold if they lose patience.”

When asked about shorts who have been badly mauled he responded, “Well what’s happened with the shorts that were in there is they were absolutely crushed on that overnight rise on Monday. There were some margin calls on some serious players. There were some anguished faces on Monday.

These guys in London woke up with their asses handed to them and I don’t think some of these guys will ever be short again, if they are still in business. So some of these perennial shorts that have always joined in the party got screwed, I mean literally lost everything. For the ones that didn’t lose everything, they certainly lost an awful lot.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/8/10_London_Trader_-_Many_Gold_Shorts_Wiped_Out%2C_Lost_Everything!.ht ml

[Twisted Titan]

Mark my words:

The suppression of Silver is so violent that when it finally unwinds ....there will come a day when those two metals are at parity with one another.

Silver will trade at the gold price one day.


And you can take those words to the Hard Currency Bank and cash it

[ximmy]

I had read that one of the reasons TPTB held silver down was the attempt at preventing Gold from rising, (they have less control over gold) kind of relying on the historical ratios to keep the metals in check... Now the 45:1 spread is crazy... Gold cares not for ratios, margin hikes, nor the pride of men... :p

At the historical ratio of 16:1 silver should/could be $112.50... Nuts huh??

[Libertarian_Guard]

End result: in one month gold will be above $2,000 with almost 100% certainty. quote




http://i53.tinypic.com/2echpw7.jpg

Commence Countdown

[solid]

http://i53.tinypic.com/2echpw7.jpg

Commence Countdown

Countdown? I'd say the launch already happened. The rocket is gone...this ol' girl is going to run!

Exciting times, indeed. Let the gold rush gain momentum!

[Libertarian_Guard]

http://i54.tinypic.com/24o2buu.jpg

[solid]

Come on guys with the rockets!

Don't jinx this! As one fat finger can crash the dow...one asshole can post a rocket and crash the gold run. Don't Post Rockets. As tempting as it is..:)

[JohnQPublic]

Gold is crashing, $1784. Down $11.

Crashing? Let's not get too dramatic.

Ok guys, knock it off with the rockets! ;)

[beefsteak]

Gold is crashing, $1784. Down $11.

Crashing?

Okay, let's all have a whack at the "Crashing PiÑata"

I'll go second since sas has already posted their guess:

My definition of a crash would be down to $1460-$1480.

Next?

[ximmy]

everybody flee... come on boys... back to the dollar... ::)

[Neuro]

Crashing?

Okay, let's all have a whack at the "Crashing PiÑata"

I'll go second since sas has already posted their guess:

My definition of a crash would be down to $1460-$1480.

Next?
Yes, that is where I would put it too. Used to think a crash down to 1250 was a possibility when gold was around 15-1600. But cash shortage is coming, so I think it is likely gold will go below 1500, with silver below 25. I think G/S ratio around 60 would be a good place to trade gold for silver, but I may start already at above 50.

[Libertarian_Guard]

Gold is crashing, $1784. Down $11.

Today could have gone in the books as 'Black Thursday' but who cares? It's the Friday close that counts, the rest of the week is just noise, (except when a new high has been made) common Friday, ride'em Cowboy! YeeHaa!

[osoab]

http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv11-279.pdf

The pdf of the release is above.

The margin requirements went into effect after today's close.

Could we consider today's action (coupled with the CHF blitz) as a temporary bottom and the new margin requirements are now priced in?