"New Rule Could Tarnish Gold"

[BoycottTheday]

New Rule Adds Uncertainty to Volatile Picture for Gold - Barrons.com

 

[editec]

It might be more interesting if they bothered to tell us what the new rule is, don't you agree?

 

[FuelRod]

As long as gold and other commodities are traded at value of the US dollar they will continue to go up for quite some time.

 

[Valerie]

It might be more interesting if they bothered to tell us what the new rule is, don't you agree?

It has to do with the margins traders are allowed...

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

 

[BoycottTheday]

It might be more interesting if they bothered to tell us what the new rule is, don't you agree?

Oops sorry, i was reading the long version and dint realiZe they dint include the meat in the link.

 

[TruthSeeker56]

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.

 

[Mad Scientist]

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.

This.

 

[Quantum Windbag]

It might be more interesting if they bothered to tell us what the new rule is, don't you agree?

I was thinking the same thing.

 

[Big Fitz]

Soooooo... they're trying to eliminate the small investor? Am I reading this properly? They only want bigger orders?

 

[TruthSeeker56]

Soooooo... they're trying to eliminate the small investor? Am I reading this properly? They only want bigger orders?

Read my previous posting on this topic. You'll find your answer. This has NOTHING to do with the "small" investor. It has to do with the LARGE investors who want to take minimal risk.

 

[Mad Scientist]

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.

 

[TruthSeeker56]

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.

Actually that's not true. Silver was almost at $50 an ounce when the margin requirements were changed. Silver is now ranging between $38-$41 an ounce. The difference is that today's silver price is not as a result of speculators buying on margin. Today's silver price is much more of an "honest" price.

I predict silver will be DOUBLE the price it is now by early next spring, at the LATEST.