The CME has just announced a cut of both initial and maintenance gold margins, effective after the close of business Tuesday 5/29.

Initial margins were cut from $10,125 to $9,113, and maintenance margins were cut from $7,500 to $6,740.

From the CME:


  1. Interesting development.  One contract 100 oz of gold.  worth about $155,870.  That’s 17 to 1 leverage or 5.8% of the contract in cash.  Is that correct.  How much could gold have to drop to get this contract called?  

  2. hmmm mkay…so why do I keep reading about Central Banks buying Gold like crazy
    and how China keeps buying too. Somebody is adding, so somebody else must have
    less and less…..right??

  3. AGX: I believe it would be $1151.85 or roughly 75% of the current spot. I wonder if Margin Maintenance has been dropped for JPM’s Derivative Bets?

    Oh Well…We Do Know One Thing:

    What’s That Jake?

    JPM’s Losses Now Exceed $8,925,000,000

  4. Yes 4 OZ. Somebody has less and they are hating it. They sell because they have no choice (Greece?) Keep on stacking because we may all find ourselves in this postion at some point or time. Again, the more we accumulate the better prepared we’ll be even if we have to get rid of a little. Hope not.

    That’s a lot of mullah, dinero’s, Lyra, green backs, Jake. Hmmmmmm!


  5. WOW!: I Just Found This Story:

    Kansas City Fed President Esther George Sort Of Calls For Jamie Dimon To Leave New York Fed

    The Huffington Post

    By Mark Gongloff

    Posted: 05/24/2012 4:38 pm Updated: 05/24/2012 5:17 pm

    Don’t worry, Jamie Dimon. Even in the Facebook mess, you are not forgotten.

    Kansas City Federal Reserve President Esther George on Thursday said in a press release that bankers who failed to uphold the “integrity, dignity and reputation” of the Fed are required by the Fed’s standards of conduct to step down from the board of the New York Fed, a key regulatory hub for Wall Street.

    Though she didn’t call Dimon out by name, her statement comes at a time when several people have called for Dimon to step down from the New York Fed, including Democratic Massachusetts senatorial candidate Elizabeth Warren and, sort of,

    Treasury Secretary Tim Geithner. READ MORE

  6. Jamie Dimon Poll and Follow-Up

    Thu May 24, 2012 at 05:11 PM PDT

    by Kenneth ThomasFollow

    The poll results are in on whether Jamie Dimon will resign from the
    board of the New York Federal Reserve Bank. By a 53%-40% majority, with
    7% unsure, readers thought that Dimon would not step down in the wake of
    the huge supervision failure at JP Morgan, which led to its $3 billion
    and counting loss.

    Meanwhile, the pressure is building for him to resign. Simon Johnson,
    whose article I first cited on this issue, has written new articles
    calling for an investigation into JP Morgan, calling for Dimon’s
    resignation, and taking on arguments defending Dimon. Johnson has also
    started an online petition calling for Dimon’s resignation or ouster. READ MORE

    My response to this is:

    1. How can anyone, (much less 7%), have no opinion?

    2. It’s old news that the loss WAS $3 billion. The current Losses now exceed $9.45 Billion

    3. Why is the margin (53-40%) not 100%?

    Okay–Let’s Start a Poll Here Now

    I Vote That He Be Removed From Every Important Position and Be Forced to Flip Burgers not at McDonald’s, but at Foster’s Freeze, Or Dairy Queen.

    He’ll Be Welcome Here

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