It happens regularly as it gets frothy, I had found a chart going back years and just a speed bump for now, dust will settle and wash rinse repeat.Indicators were stretched, would you borrow out your house with so much risk, can’t blame them at times.
As physical availability dwindles (silver, not so much gold), the premium to hold levered paper will go up but I don’t see physical flooding into the market as a result, in fact it should dampen paper holdings and encourage physical ownership (that’s just an idea of mine, someone more knowledgeable can dispute). The tell will be from here, do physical premium’s hold up or do they fall (and to what degree) with spot.
If prem’s hold up, the bull market isn’t over (which of course most of us believe anyway).
My point was that the selloff got going before notice of the margin hikes went out (it appears).
Perhaps the increased volatility spurred the hikes. IDK.
It happens regularly as it gets frothy, I had found a chart going back years and just a speed bump for now, dust will settle and wash rinse repeat.Indicators were stretched, would you borrow out your house with so much risk, can’t blame them at times.
As physical availability dwindles (silver, not so much gold), the premium to hold levered paper will go up but I don’t see physical flooding into the market as a result, in fact it should dampen paper holdings and encourage physical ownership (that’s just an idea of mine, someone more knowledgeable can dispute). The tell will be from here, do physical premium’s hold up or do they fall (and to what degree) with spot.
If prem’s hold up, the bull market isn’t over (which of course most of us believe anyway).
Value of contract goes up so does the margin requirement. Nothing sinister about that.
My point was that the selloff got going before notice of the margin hikes went out (it appears).
Perhaps the increased volatility spurred the hikes. IDK.