In one of their most desperate acts to date, the bullion traders at the CRIMEX persuaded the markets board of directors to raise the margin requirements on Silver by 30%. This single act was the cause of today's 10% crash in the price of Silver at precisely 1PM. The damage spilled over into the other Precious Metals markets as well.
Jim Sinclair said it best in his "Thought For The Day":
The ultimate proof of a bull market is the increase of margin rates.
They are a professional tool to cover shorts and dictated by the board of directors of the exchange, which means floor traders.
The CRIMEX goons have exposed themselves via this act. They have lost control of the price of Silver, and have resorted to this last ditch effort of raising margin requirements to slow the rise in the price of Silver, and quell demand.
What a farce!
Silver is traded around the world. Do these clowns really expect that by raising margin requirements on the CRIMEX that the rest of the world is going to stop buying Silver? The realization that these goons DO NOT possess, nor can they find the physical bullion to cover their naked ass shorts is upon them. The realization is there for the whole world to see. The race to accumulate physical Silver has only just begun.
An excellent buying opportunity is at hand.
Silver Margin Requirements to Change
CME Group, the operator of the New York Mercantile Exchange and Commodity Exchange (COMEX), on which silver futures contracts are traded, released a statement to clearing member firms, chief financial officers, back office managers, and margin managers notifying them of an increase in margin requirements “as per the normal review of market volatility to ensure adequate collateral coverage.”
Zero Hedge obtained a copy of the notice, which states that effective after the close of business on November 10, 2010, the maintenance margin requirement for COMEX 5000 Silver Trust Futures (SI) and COMEX 5000 Silver Trade at Settle (SIT) will increase from $5,000 to $6,500 per contract.
Speculation has arisen that this news is responsible for this afternoon’s significant negative reversal in the price of silver. While silver did tumble shortly before release of the CME’s notice, keep in mind that it had climbed considerably in recent weeks and may have anyways been due for at least a short-term correction. Nonetheless, the timing of the market’s response is somewhat suspicious.