silver shenanigans

[CarlWohlforth]

Yesterday the Chicago Merc tightened margin requirements for trading silver futures. This was a move to settle frothy markets. Before yesterday you needed to have $6,500 to trade 1 silver future contract. One contract controls 5,000 ounces of silver. So you can see how easy it was to get highly leveraged.

Well now you need $8,000 to trade 1 contract. You can still get super leveraged. The markets are whipping around today while people adjust. Some were so leveraged they had to sell because they didn't have enough margin! Part of the volatility spread to other metals because traders were thinking margins might be tightened elsewhere.

Wow! Hold on to your hats. I think things will settle out by next week at about where they were two days ago, that is silver around $27-$28.

[Bubblehead]

 

I don't follow silver... Well, I don't follow gold either, for that matter....But, I thought it
interesting that a recent article regarding gold, stated that there were 170,000 tonnes of
gold mined since an apple first fell from a tree.  Kinda hard to believe; especially if one has
seen an Indian wedding, lately!