And so it begins.
Those who followed precious metals in 2011 will recall this game plan all too well:
Smash gold and silver prices using unprecedented amounts of naked paper shorts, then announce massive margin hikes (due to increased volatility) to force capitulation among any longs holding out.
After large take-downs in gold and silver in thin holiday trading last week, the Shanghai Gold Exchange announced today it will raise gold margins to 13% effective Dec 28th.
China’s leading gold exchange, The Shanghai Gold Exchange said it will again raise margins and daily price moving limits for its gold contracts.
China’s largest exchange for precious metals attributed this decision on the increased volatility in the precious metal sector.
The exchange will raise margins on gold contracts, including the gold spot deferred contract, to 13 percent from 12 percent from the settlement of Dec. 28.
Limit for daily price movement will rise to 10 percent from 9 percent from Dec. 31, the exchange said in a statement on its website.