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« What drives silver prices | Main | Endeavour Silver Corporation: Q1 Silver Production Up 19% »
Thursday
Apr122012

CME Lowers Silver Margins (He's behind you!)

While it is unknown if this is merely a bull trap to get yet another bubble going, then to slaughter everyone with the same relentless barrage of margin hikes as we saw in the spring of 2011, or simply volumes in commodities have gotten so low that even the CME is willing to allow a little price appreciation in exchange for participation is unknown, but as of April 16 silver initial and maintenance margins will be 12.5% lower, while copper margins are declining by 20%.

For the full list of margin changes among electricity, agri, coal, crude, freight, metals, nat gas, and refineds, see here.

 

Well, this looks like a case of once bitten twice shy, Zerohedge are right in that temptation returns, but who would load up on silver now and on margin to boot! As we see it most retail investors will tread very carefully here and make their acquisitions in a 'layered' but steady fashion. For the record margin is something that we don't use, when we want leverage we use options and then we are certain about the amount we can lose if all goes pear shaped.

Regarding www.skoptionstrading.com. In 2011 we outperformed

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Our model portfolio is up 445.53% since inception

A success rate of 90.72%

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Average return per trade of 36.17%

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Reader Comments (4)

There's a promo on TV in the US that has a sports anchor on ESPN walking down the hall in the ESPN offices when he stops to ask a famous cage match fighter, who just happens to occupy a cube in the offices and who's office is fenced in like a match ring (That's what makes it funny.), if he can borrow a sticky note.

The cage fighter says, "Sure" and pushes the note pad just far enough toward the guy that he'd have to enter the ring to get it and the fighter gestures to him with his head in a kind of "come get it punk" kind of way.

The guy says. "Oh, uh, thanks, actually I think I'll just write it on my hand" as he walks away.

Well, thanks, CME, but I think I'll just "write it on my hand" by buying physical.

April 13, 2012 | Unregistered Commenterfallingman

Its hard enough when silver is getting battered without having to face margin calls by those who have you over a barrel! Buy the physical, sit tight and stare them down.

April 13, 2012 | Registered CommenterSilver Prices

they are doing it , so you think its normal behavior that they go up and dowm, so when they smash you again, there won;t be such an uproar

April 13, 2012 | Unregistered CommenterCarlos

Leave it up to the regulators to lead the sheep to slaughter.........

April 13, 2012 | Unregistered CommenterDon

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