CME Gold marginsThe cartel is pulling out all the stops to induce as much pain as possible through the highly levered paper metals markets.  Apparently a $100 smash in gold in 24 hours is not enough.
Moments ago, the CME announced a 25% hike in both initial and maintenance gold margins from $6,400 to $8,000, effective after market close Friday 6/21.

 Silver Buffalo Rounds As Low As
$.99 Over Spot At SDBullion!


From the CME:

CME Gold margins


Meanwhile 5 stories below 1 Chase Manhattan Plaza….


Perhaps by Monday the CME can just get it over with and announce gold and silver are now fully cash only markets.

GOT PHYZZ (in-hand, meaning no margin calls)?

2013 Gold Buffalo As Low As $59.99 Over Spot

  1. Wow! They must be really desperate to do margin calls now. They must really want the price to fall to Zero! If they knock it down any further their wont be any physical metal available anywhere.

  2. I have this new theory that perhaps the mines are being scared out of their hedge positions, to ensure they’ll make good LOSSES. Losses lead to loss of capital, low stocks, depressed investors, and reduced mine supply. Setting for for an even more violent up leg, when it is allowed to take place. Heck, they may put private mints out of business to reduce retail demand.
    /tinfoilhat off

  3. Although I am wringing my hands with glee, and making bwah ha ha noises, as I dip into my Fiat stash to buy precious metals, this is bad. What they are doing to the Precious metal markets, imagine what’s coming that they don’t want money to hide any place they can just grab.

  4. There is no law left, everything is controlled by these cooks. As far as the owners of paper Ag & AU. They may be stupid for buying into that casino but they nor anyone else deserves to be outright robbed like this! These bankers and politicians doing this need a life sentence of hard labor!

    • I dunno, Mary.  But if I were the miners, I would give the Crimex / CME / LBMA and all of the other paper mongers a hearty hi-ho f*** you and then sell ALL of my output to those very nice Asian customers.  At least they seem to appreciate the effort that goes into producing PMs.  The paper mongers can then deal with them if they want or need any phyzz.

  5. @mikeyj80
    Margin hikes means that the hedging will cost more money up front to sustain. They need serious cash on the sideline to be able to absolve more of such margin hikes. And they don’t want to be stopped out by margin hikes, those are always at the least convenient moment.

  6. gah, cant seem to comment on this thread, tracking now and makes sense, makes a hedge harder as costs more capital do do so.  
    i do like the margin model as it is friendly to businesses managing cash flow but still needeing to hedge a significant portion of production/use/handle… handle for the middlemen production and use for the first producers and last user

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