From Harvey Organ 6/18/2011 Gold Margin Requirements Siphon Interest From Silver

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#1 Sat, Jun 18, 2011 - 4:15pm
Jake
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From Harvey Organ 6/18/2011 Gold Margin Requirements Siphon Interest From Silver

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Many of you are speculating why did the COMEX lower margins on gold with this ancient metal of Kings rising close to its zenith. Silver margins remain high despite silver lower in price

https://harveyorgan.blogspot.com/2011/06/crunch-time-for-greecegold-and-...

I really like James McShirley of GATA with his reasoning:

The latest reduction in margin requirements for gold is a blatant attempt to siphon speculator interest away from July silver prior to option expiration and first notice day. This is the clearest signal yet that they are on the ropes with silver delivery. At the prior spec margin of $6,751 for gold it already enjoyed leverage of 22.81 - 1, based on $1,540 gold. By decreasing margin requirements to $6,075 they have increased leverage another 11% to 25.35 - 1. This is totally irrational when you realize silver is mired in leverage of only 8.30 - 1, based on $35.85. Gold already had 315% more leverage than silver, yet by reducing gold margins further it now is a whopping 350% higher! This is even more absurd when you realize gold is only 2 1/2% off its all-time high, while silver is still 28% lower than its most recent top. Any CME talk of risk modeling is pure rubbish when leverage of 22 - 1 is increased further to 25 - 1, while silver is clamped at 8 - 1. All risk models must factor leverage ratios, and the CME has thrown that out the window in favor of protecting silver shorts. I'm sure they think they can better control (and rig) the new spec interest coming into gold futures. There's probably at least a few hedge funds dumb enough to pull out of silver in favor of gold. After all, they can buy 3 1/2 gold future contracts for every 1 silver contract. The CME just tipped their hand BIG time IMO, and they are pulling out all stops before the end of the month. When the silver market blows up it will then be obvious to all that the CFTC was nothing more than an illusion of enforcement, and in reality a PR division of the banking cartel.

Edited by: Jake on Nov 8, 2014 - 5:09am
Sat, Jun 18, 2011 - 7:52pm
lochsa
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Is The COMEX Manipulating Gold Margins To Mask Silver Supply Def

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Sat, Jun 18, 2011 - 8:02pm (Reply to #2)
TheGoodDoctor
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Thanks for these posts guys!

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Thanks for these posts guys! Hadn't heard about this one. I wonder what this and the main story from today mean in combination? Hmmmmm.

“Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves.” Norm Franz
Sat, Jun 18, 2011 - 8:49pm (Reply to #2)
Jake
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Thanks--This Article Goes into the Subject With Greater Detail

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Patrick Heller is One of The Few Who Are Very Well Educated on This Subject.

Hat Tip To Ya! It Makes Me Itch For More Silver!

Your Silver--I Want to Buy it! Sell Me Your Silver!
Sat, Jun 18, 2011 - 9:10pm (Reply to #3)
Jake
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What Does It All Mean?

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Well, IMO it means that there is mounting evidence that the supplies of so-called "investment" silver are dwindling and are being hoarded by an increasing number of individuals and groups (countries too, I guess). Although I don't like the terms investment and silver in the same sentence, it should be pointed out that the majority of industrial silver supplies are pretty much spoken for and are going toward those applications such as solar and electronics without a lot of diversion to destinations such as mints. All parties are competing for the available mined silver. As a result, it MEANS that getting your hands on silver coins and bars will just become increasing harder into the future.

It may not be manifesting itself at a fast enough pace to raise your eyebrows now, but it seems to me that I'm seeing more and more "delayed" and "out of stock" notices at on-line and local coin shops. 

One thing I tend to believe is that events such as runs on banks, and rushes to grocery stores to hoard food and supplies in times of panic don't happen gradually. Just as quickly as was described in Weimar, I think we'll see a rapid depletion of "investable" silver supplies one day and we won't know what hit us.

I just don't want to be caught with a wad of fiat in my hands with nothing to do except wash it down the storm drain.

Your Silver--I Want to Buy it! Sell Me Your Silver!
Sat, Jun 18, 2011 - 9:37pm
lochsa
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Mr Heller is a pro

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Thanks Jake unhappily agree with general assessment I need more silvergood luck

Sun, Jun 19, 2011 - 12:19am
mouser
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First thought that came to me

First thought that came to me as well when i read about the gold margin being lowered- It is an obvious attempt to get more comex dollars playing the gold and less on the silver. I thought they had pulled out all the stops with the mega -manipulative 5 margin hike ploy after the shortcovering had ran silver up near 50$.

But i didnt see this particular strategy being employed i must admit. What is their rational for lowering GOLD? Not volatile enuff for the banksters? Geez what next?

Sun, Jun 19, 2011 - 12:26pm (Reply to #7)
Jake
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JP Morgue/CFTC Rationale

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mouser wrote:

What is their rational for lowering GOLD? Not volatile enuff for the banksters? Geez what next?

Well, of course, the JP Morgue/CFTC rationale is to promote the Ponzi scheme for as long as possible at all costs without regard to laws, morality or consequenses as they are immune from prosecution. In the end, the devil himself will have their miserable souls. or they will be doomed to walk the earth.

Your Silver--I Want to Buy it! Sell Me Your Silver!
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