The Reason For Another Overnite Hit Job
Yesterday and the overnite hit job in the PM’s, especially Silver, was because the criminals at the CME announced yet another margin hike that goes into effect tonight AFTER Friday’s close of trading. While Gold is only being increased to 9% from 8%, Silver is being jacked up from 15% to 18%! These three sets of margin increases, have come within one week and AFTER the huge run up in the metals. While succeeding in dampening speculative fervor, they are going to drive trading away from paper and towards physical. Actually a good thing, because with prices going bonkers, premiums and availability were becoming a challenge. It will take some time for things to settle down but a slow, steady, moderate increase in prices over a long period of time, is likely to replace the wild gyrations we have experienced in the last two months. Such a development is perfect for mining shares to benefit from the steady increase in cash flow and earnings.
It is no coincidence that they did this just in front of their new 100 oz. silver contract that begins trading on Monday the 9th. While many traders may be squeezed out of the existing 500 oz. contract they will likely move to the 100 oz. instead.
Then why is Barrick which blew out earnings after the bell last night only up 2% in premarket after dropping 7% yesterday….guess the miners will become even more undervalued. I think I’m going to take out an SBA loan and buy me a 100 million dollar MCap miner..anyone want to pool their money? We only need 10% down….lol.
what about the SGE…? how do we think about the guy who shorted double the amount o silver in the world…
wild, crazy, insane metals market.
Did he short before or after the big Friday drop and did he say if it was a trade or does he think silver has topped for this cycle?