Just a little nudge…
From skwealthacademy on Twitter:
However, what I found to be very curious was that the Google search engine algorithms returned no mention of the Chicago Mercantile Exchange (CME) raising margins on gold and silver futures. Recently, the CME raised initial/maintenance margins on COMEX gold futures (100 ozs) by a considerable 11.11% from $4,950/ $4,500 to $5,500/$5,000 and on COMEX silver futures (5,000 ozs) by 4.55% from $5,720/$5,200 to $6,050/ $5,500 within the last month.
Now here is the interesting thing about this event. This event was nowhere to be reported in the mass media. Try Googling, “CME raises margins on gold futures, silver futures”, searching both the web and the “news” categories. The top search results, returned by Google algorithms, at the top of its first page of results are articles about raising margins on gold and silver futures from many years ago. There is nothing returned in Google engine search engines about this important event, as if it never happened at all. Here’s where things become even more interesting. Once aware that these margin increases occurred, I searched the CME’s website, as I was certain that I would find news about their raises of gold and silver margins on their website.
Instead, in their “media room” section, there was no press release at all regarding their decision to increase gold and silver futures margin levels in the time period if happened, even though the margin increases undoubtedly contributed to margin calls and some of the downward selling pressure on gold and silver futures prices in recent days. This is a concern to me. Gold and silver margins were still at the lower levels on 13 January 2020 and then raised to the higher levels when I checked them again on 25 February 2020. The exact details of this gold and silver margin hike should be easy available online and also available at the CME’s website, but instead, opacity, not transparency, seems to be the rule of law when it comes to precious metal markets. As the CME raised margins on silver futures a ridiculous five times by a massive 68% in just nine trading days between April 26th and May 9th in 2011 to collapse silver prices during a raging silver bull that carried silver prices to $50 an ounce, we have to be wary of the CME utilizing this tool again, should gold and silver prices start rising significantly again in future months. And always know, that when gold and silver prices reverse and continue to rise in price, this rise will not be predicate upon coronavirus fears, but due to continuing Central Banker destruction of fiat currencies’ purchasing power all around the world. And if any further precipitous drop in gold and silver prices happen moving forward, check to see if the CME has raised margins on gold and silver futures significantly.