Re: CME raises silver margins again.
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Message: CME raises silver margins again.
May 2 - Gold $1556.70 up 70 cents - Silver $46.08 up $2.50
Here They Come
I was greeted from the long trip home from Munich with this:
Rob Kirby…
Made In America
Bill,
I dissected the data..... 12% drop over 9 minutes...... And 41/2 hours later it comes out Bin Laden was killed a week ago.... This smells.
Dave
So what happened?
You will NEVER get an interpretation from the reporters/pundits in the mainstream gold/silver world and on Planet Wall Street that there was an orchestrated effort to bring the price of runaway silver down … a runaway that has JP Morgan on the ropes with their short position. Therefore, that is the first thing I look at, ESPECIALLY when silver falls $6 per ounce so quickly.
The Gold Cartel always operates in a nefarious manner, so why should the silver bombing be any different? The background…
*As we all know, silver has been moving straight up. It appears there is nothing that JP Morgan and the others could do about it because they don’t have the goods (physical silver ) to stop it. If they did, they would have. This has been some move, to put it mildly:
Weekly silver
http://futures.tradingcharts.com/chart/SV/W
*As mentioned the other day, silver is way overbought technically, but still oversold fundamentally because the major shorts led by JPM have sold silver they cannot deliver. Therefore, The Gold Cartel, in this case JPM, needs to pull any rabbit it can out of the hat to induce the longs to pitch their positions so they can do some more covering on the break. *An increasingly alarmed Comex raised its margins on silver twice last week. But the second one was the one that set up their raid on Sunday evening, and the reason is because two firms went far beyond what the Comex set up as its new minimum requirement. The first was Ameritrade which blew out the Comex silver margin requirement to $30,000. That is a YIKES. Man Financial Global, one of the leading futures firms in the word, went almost as far: Bill, Cheers *The timing was right for The Gold Cartel to make their move, and as is so often the case, they like to act when the least amount of futures traders are around so they get the most bang for their buck. An added plus for them was silver buying China and Vietnam were closed. *The deal for the attack was totally closed when word was leaked to them about the Bin Laden killing. You know for sure JPM and Goldman Sachs got the word from high up what was to be announced later in the evening. Now, really should have no effect on the price of silver, but you know the way it is. Besides, some of the clunker reporters said just that. So, The Gold Cartel (JPM) had its ducks in order and made their move, also knowing they had some vulnerable longs with a steep margin increase by those two firms mentioned above. The silver open interest rose 2488 contracts to 132,000 after a series of substantial drops. This sudden move up suggests JP Morgan and gang, after what appears to have been some shortcovering, were in there preventing silver from taking out $50 per ounce on Friday. Those new longs, in those two firms in particular, had to be blindsided by the size of the margin increase and stunning drop in the price. Surely a number of them were forced to dump their long positions … a dumping which fed on itself in the early going.
On Friday Man Financial Global (MFG) increased the minimum margin requirement for ALL their silver futures trading clients to $25,000 per contract which is 175% of the CME minimum and there are NO EXCEPTIONS allowed. That was not manipulation this was their compliance department suddenly paranoid of default. They probably have now triggered that default unwittingly because the physical draw on the price drop will be massive.
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Adrian
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