BoycottTheday
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- Jul 3, 2011
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It might be more interesting if they bothered to tell us what the new rule is, don't you agree?
Higher collateral requirements for trading gold futures are aimed at protecting investors and are in response to rising volatility, exchange operator CME Group Inc. (CME) told Dow Jones Newswires Thursday.
CME spooked gold investors with a late-Wednesday announcement it was increasing the amount of deposit required to trade a number of its gold futures products, including the benchmark 100-troy-ounce futures.
CME Group: Comex Gold Margins Raised To Protect Investors - WSJ.com
It might be more interesting if they bothered to tell us what the new rule is, don't you agree?
This.This "new rule" was already applied to silver traders back in May. The result was an approximately 35% drop in silver spot prices in a short period of time, but silver has rebounded nicely and is less volatile than it was when the carpetbagging margin speculators ruled the day.
For COMEX to change the margin requirements for gold is a GOOD thing. It will chase away the speculators who don't have the cash to pay the higher margin down payments.
Silver is the much better long term (and short term) buy. Silver is vastly undervalued in comparison to gold, and gold is always vulnerable to government "intervention". It only takes an act of Congress to force everybody to trade in their gold for "equal" amounts of U.S. paper and ink promises.
"Gold fever" is fine if you are a millionaire, but the "average Joe" should be buying as much silver as they can afford, since their 401Ks and mutual funds and all other stock market holdings are going to nosedive in the next several months.
It might be more interesting if they bothered to tell us what the new rule is, don't you agree?
Soooooo... they're trying to eliminate the small investor? Am I reading this properly? They only want bigger orders?
Changing the margin requirements only succeeds in knocking down the price for a short period of time. The same thing was done with Silver a few months back that caused it to fall but now it's back to where it was.
The same will happen with Gold.