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Post by jeffolie on Aug 20, 2011 9:29:05 GMT -6
One should expect gold & silver margin increases
Options expire in metals next week ... often metals gain in the trading before expiration and then a collapse or bear raid follows
Raising margins may happen next week creating yet another bear raid of deeper proportion in gold just as already has happened last time in silver
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Post by jeffolie on Aug 23, 2011 12:50:19 GMT -6
The Bear Raid is on now as expected.
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Post by jeffolie on Aug 24, 2011 8:33:06 GMT -6
The Bear Raid continues as expected ... metals options expiration week
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Post by jeffolie on Aug 24, 2011 17:30:35 GMT -6
One should expect gold & silver margin increases Options expire in metals next week ... often metals gain in the trading before expiration and then a collapse or bear raid follows Raising margins may happen next week creating yet another bear raid of deeper proportion in gold just as already has happened last time in silver As expected from my post Saturday and the title of this thread ... margins raised CME raises gold margin requirements again August 24, 2011, 5:17 PM . For the second time this month, the CME Group Inc., the parent company of the main metals and energy exchanges in the U.S., announced late Wednesday an increase in margin requirements to trade gold. It raised the amount of money needed to trade gold contracts by 27% to $9,450 per 100-ounce contract. The move comes on the heels of a $104-an-ounce drop in gold futures prices, which some analysts had blamed partly on speculation that the CME would raise margin requirement again. Gold’s approach to $2,000 an ounce “invited excess speculation and therefore margin concerns for exchanges,” said Richard Hastings, a macro strategist at Global Hunter Securities. “The quasi-exponential price behavior was dangerous and the exchanges today view this with significant concern — and act quickly.” Brien Lundin, editor of Gold Newsletter, said “raising margin requirements after a major decline doesn’t affect the speculative bulls as much as the bears.” “We may see this move help foster a rebound by forcing shorts to cover,” he said. In electronic trading on Globex, December gold GC1Z was trading $3.70 higher, after closing at $1,757.30 on the Comex division of the New York Mercantile Exchange. blogs.marketwatch.com/thetell/2011/08/24/cme-raises-gold-margin-requirements-again/
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Post by jeffolie on Aug 25, 2011 14:25:41 GMT -6
Options expiration finished with silver now at about $41 as I post this.
Next options expiration most likely will result in similar volatility.
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Post by jeffolie on Sept 5, 2011 10:37:12 GMT -6
Cental Bank Gold Buying continues plus India 24 carat pure gold jewelry sales increased.
As I post this NEW GOLD HIGHS: Gold $1,903
old BEAR RAID failed including margin jumps. New margin increases may fail unless the CME or others make bigger and more often margin increases. Gold at $2000 seems like an big, round number.
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Post by unlawflcombatnt on Sept 5, 2011 12:00:59 GMT -6
The trend continues for Gold and Silver to rise as the economy worsens. In contrast, precious metals with more industrial use are not rising (i.e., Platinum and Rhodium). Palladium is somewhere in between, though it is not rising anywhere near as much as Gold or Silver. I posted a link showing the long term trends for all 5 precious metals here.
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Post by unlawflcombatnt on Sept 5, 2011 23:05:12 GMT -6
Gold is at $1,912/oz as of ~10PM PDT (~12PM CDT)
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Post by graybeard on Sept 6, 2011 7:45:21 GMT -6
I felt pretty smug doing a stop loss at 43 on my SLV etf a few months ago, having bought at an average of below 13. I bought some back at 32-33, but not near enough, as it looks today.
There are only two days the value of something is important - the day you bought, and the day you sell.
GB
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Post by jeffolie on Sept 6, 2011 9:59:33 GMT -6
I felt pretty smug doing a stop loss at 43 on my SLV etf a few months ago, having bought at an average of below 13. I bought some back at 32-33, but not near enough, as it looks today. There are only two days the value of something is important - the day you bought, and the day you sell. GB Great, congradulations !!!!!!!!!!!!
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Post by jeffolie on Sept 7, 2011 9:05:09 GMT -6
Another bear raid?
I think not.
I think the metals decline appears to be High Frequency Trading (HFT), algorithms creating small "flash crashs" in the overnight, thinly traded, low liquidity international, Eastern metals markets. Look at the charts, they look just like HFT 'flash crashs' to me. Compare the percentage declines, they look similar as well.
Some commentators attribute they illogical declines in the face of the 'peg' of the Swiss Franc to manipulation by Central Banks or the highly concentrated short sellers such as JPMorgan Chase.
Does it matter that metals decline? Look at the Bear raid that started this thread. High volatility in stocks drove away the humans and small financial traders in stocks; high volatility with margins increased have done the same in metals. The lack of humans and small financial traders means that fewer bidders, this creates a vacuum for the HFT algos to drive through until a bidder is found at much wider, lower prices. Highly leveraged, weaker traders can not survive these moves. The HFT algos are not physical, take possession buyers.
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