Shanghai Gold Exchange Hikes Gold & Silver Margins Again on Forward Contracts

Wondering why gold and silver were suddenly hammered lower early this morning?
The Shanghai Gold Exchange has announced additional gold and silver margin hikes on forward contracts effective Sept. 9th.
Keep in mind that several weeks ago Shanghai hiked gold and silver margin on forward contracts by 12%, then several days later the CME followed suit with a 2-step Gold margin hike which sent gold back to test $1700. 
Clearly the cartel is panicking with the prospects of gold breaking out to new all-time nominal highs merely 2 weeks later, and silver preparing for an assault on $45-$46.
The half-life of this intervention already appears over for gold, as it is now back above $1900.
The CME may not be able to wait 2-3 days this time before they follow with their own margin hikes.

SHANGHAI (Commodity Online) : China’s largest Gold exchange, The Shanghai Gold Exchange will raise trading limits and margin requirements on its gold and Silver forward contracts on Sept. 9 to prevent excessive volatility.


In a statement, SGC said it will temporarily raise trade margins and daily trading limits for both its gold and silver forward contracts ahead of a long weekend to allow traders more latitude to adjust to overseas price movements.
Chinese exchanges are closed Sept 10-12 for the Mid-Autumn Festival.
Trading margins for the gold forward contract, Au(T+D) , will be raised starting Sept 9 to 13 percent from 12 percent, while the daily circuit breaker would be lifted to 10 percent from 9 percent.
The Silver Gold forward contract, Ag(T+D) , will also see its trading margin raised by one percentage point to 16 percent, while daily movement will be raised to 12 percent, from 10 percent.
The SGE said the collateral and daily price limits for both contracts would revert back to their pre-holiday levels on Sept. 14 if those limits were not breached on the first day of market re-opening on Sept 13.
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Comments

  1. Aren't "free markets" great?

  2. they are in with hammering silver donw!!! fuck!

  3. Pat Fields says:

    So much for the 'anti-Bankster' aura that exchange was painted with early on.

  4. Given that the Rothschilds are at the helm, it is predictable to see the margin increase. Let them continue this margin game until the margin is raised all the way to 100%. If I was in that comex game, I would be backing my account with 100% of the contract value.

  5. I still say chinese are WAY less likely to be satisfied with paper tickee. We are diseducated…. but it is normal cultural practice for them (one of my mothers was chinese) to accumulate shiny valuable things and pay cash for them.

    I do think there is a market for goldpaper there and yes it does add to manipulation via futures market but it will ultimately be undone by the physical markets. (unless we get globabl totalitarian state with money metals confiscated…but we are screwed every which way if/when that comes to pass anyway).

  6. Presumably it gets small investors into physical where they belong… and the powers-that-were seem to agree that is a good strategy too, at least for now. When Ben and the boys decide physical is a threat to them and do some sort of confiscation, they are going to find that strategy won't work like it did in 1933.

  7. I think China is trying to buy more gold to catch up with the money they lend out

  8. When citizens respected their government many still withheld their gold and that's how so many vintage coins exist today. Today people have no respect for the government, will not surrender anything which will result in the government trying to take it by force. Slight problem, people will fight back this time

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