Tuesday, August 23, 2011

Gold Margins Hiked in China

From Zerohedge:

Wondering why gold dropped by almost $100 today? Wonder no more: today the Shanghai Gold Exchange lifted gold margins for forward contracts the second time this month to 12% beginning on Friday, in a move that is starting to resemble the CME's vendetta with silver back from May. Should we expect 3 more SGE margin hikes in the next 2 weeks? Or will the CME rightfully accept the baton and do everything in its power to dent the parabolic rise in the alternative reserve currency? We are cautiously looking at what the CME will do today and will advise readers. In the meantime, here is what else happened in Shanghai: "China’s main precious metals exchange will also widen daily trading limits for those gold contracts to 9 percent, up from 7 percent, the SGE said on its website on Tuesday. The contracts to be affected include Au(T+D), Au(T+N1) and Au(T+N2). This is the second time the exchange has raised collateral requirements on gold forward contracts this year — both times in August — as international gold prices hit a series of record highs over the past few weeks, boosted by a flight to safety on worries over a stalling U.S. recovery and crippling sovereign debt in the euro zone. Shanghai Gold T+D contract lost half a percent to 387.8 yuan per gram, or $1,884.47 an ounce, down from an intraday high of 391.9 yuan when the market opened."

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26 comments:

  1. flauntAugust 23, 2011 at 4:56 PM

    I heard this somewhere else this morning. It was only an increase of 1%. Not sure how it would suddenly have gotten "priced in." Smells like shenanigans to me. There's all sorts of reasons to be weary this week... Margin hike potential from CME and IB. Tuesday is "reversal tuesday." Market way oversold and volatile as hell. Opex on futures. And of course, the bearded clam speaks on Friday.

    ReplyDelete
  2. malcolmAugust 23, 2011 at 4:59 PM

    Ok my fellow silver bugs:

    The Case for the 1:1 Gold to Silver Ratio
    By Silver Shield, on August 22nd, 2011

    My favorite part!

    "(Please note that I do not play with the fun game of guessing the dollar price of gold or silver. While it is fun to throw out numbers like $10,000 gold or $1,000 silver, the reality is that I do not care what the dollar price of silver is, ever. I am investing in silver because the dollar is going to become useless as a Confederate Note. I would not consider selling one ounce before the collapse of the dollar. Whatever the new monetary paradigm is created out of the ashes of the dollar, whether it is a new dollar or a gold or silver currency, there will be tremendous opportunities to by thoroughly inexpensive income producing assets for nothing. I will hold until that day. Read: Who Cares About Your Bet, If The Casino Is Being Demolished?!)

    If you cannot or should not use the dollar as your measuring stick for your assets, then the best way for determining relative value is ratio investing. If you look throughout history there is the 1:1 Dow to Gold ratio during the 1980 peak of gold. The one that I like the most for silver is the 1/1oth of an ounce of silver for a day’s wage for hard human labor. (Read: Honest Work For Honest Silver Pay or Retire Off Of $30,000) The gold to silver ratio is probably the best known ratio and it currently is at 1:43. I know that by any logical sense that silver is extremely undervalued relative to gold, besides any other factors that are extremely bullish on silver. (Read: The Ultimate Silver Investor.)"

    http://dont-tread-on.me/the-case-for-the-11-gold-to-silver-ratio/

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  3. AnonymousAugust 23, 2011 at 5:11 PM

    to everyone freaking out on the drop today in g & s, fucking chill...

    take a look at a daily chart... feel better?
    drops are healthy, lets have a slow steady rise, the less volatile the long term rise, the harder it is to take down.

    i cant fucking bold that so ill say it again: the less volatile the long term rise, the harder it is to take down.

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  4. malcolmAugust 23, 2011 at 5:11 PM

    Good one!

    "the bearded clam"

    I like the Bernakster.

    ReplyDelete
  5. UnknownAugust 23, 2011 at 5:26 PM

    from bloomberg: “The reactors need power to cool the operating cores and spent fuel,” Chris Gadomski, a nuclear analyst for Bloomberg New Energy Finance, said in an e-mail. “If we lose the backup diesel generators at North Anna, you can have a similar situation as Fukushima developing there. Virginia Power should try to restore offsite power as soon as possible.”

    its ok, it's not like there's a category 3 hurricane with 125 mph winds headed DIRECTLY toward the diesel generators, ooohh wait, scratch that, we are um, unprepared, aren't we

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  6. malcolmAugust 23, 2011 at 5:33 PM

    @Commodity World News

    one word holyshit! How did the power go out?

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  7. UnknownAugust 23, 2011 at 5:37 PM

    earthquake, after fukishima, all the bullshit government analysts said, we could have an earthquake at one of our nuclear plants, but we couldn't have an earthquake immediately followed by a flooding of the diesel generators. bullshit

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  8. malcolmAugust 23, 2011 at 5:43 PM

    to many coincidences

    ReplyDelete
  9. UnknownAugust 23, 2011 at 5:44 PM

    exactly, or you could just say that we're unprepared we cause crises out of nothing (mortgage scam, gold maniuplation) and then a real crisis fucks us

    ReplyDelete
  10. UnknownAugust 23, 2011 at 5:57 PM

    CNN reports one of the four diesel generators has Failed, Dominion energy says "it wasn't considered an emergency at the time."
    These fuckers are playing with our lives

    ReplyDelete
  11. UnknownAugust 23, 2011 at 6:04 PM

    Call me crazy, but I'm sitting here thinking: why did the generator fail, please explain. Will another one fail? Is there a design flaw? How many exactly do you need to operate to prevent meltdown?

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  12. LedbedderAugust 23, 2011 at 6:30 PM

    @felix: answered you under "goldman selloff" post

    ReplyDelete
  13. malcolmAugust 23, 2011 at 6:48 PM

    Ok, here are the thoughts of a amateur. JPM et al know that the Bernakster is not doing anything on Fri. In the past they have waited until closer to expiry before a smack down, but this week they hit on Tuesday. Why? This says to me they are expecting PMs to rocket very soon.

    Now they could do margin hikes and another smack down, but I think we've based at least in silver, gold on the other hand can go to 1700 but I doubt it.

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  14. malcolmAugust 23, 2011 at 6:57 PM

    Durable goods tomorrow, labor on Thursday and Bernakster Friday, yikes!

    ReplyDelete
  15. dollarslideAugust 23, 2011 at 7:10 PM

    @ malcomb

    Thanks for the DTOM links!

    ReplyDelete
  16. Buckanear2August 23, 2011 at 7:11 PM

    I'm surprised that Wall Street didn't rise 300 pts on the earthquake alone - maybe it did. Surely the damage created will generated credit and fiat in the fractional banking system. Do they not realize that disaster = death = profits? Ironically, the Dow rises 4% on zero news! Gents, it's time for one big bitch of a war, conscription and confiscation, let's all rally around the flag and give our first born to the war mongers! Iran must fall at all cost!!! Long live imperialism and long live capitalists and their inheritance. Fuck everybody else and everything about them! One for all and all for one!

    ReplyDelete
  17. ColinAugust 23, 2011 at 7:18 PM

    up 300 then down 100 in 6 weeks, Ill take that any day :) ... Im sure it will get worse but in end it will rise

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  18. LedbedderAugust 23, 2011 at 7:44 PM

    Damn, I almost hate to post this because I don't want it to happen, as I am pretty much done buying PHYZZ. The trajectory (from here on out, will be spelled traj. line) line...DEPENDING ON THE SPEED IT HAPPENS (STRESSING IT NOW) SIU11 could go down as far as $38.50 +/-. Currently SIU11 is at $42.115. I'm using Sept. due to the fact it is still the lead contract. That are would be the third hit, and will be the turn around area. Again, just cannot predict the speed, and that is very important. If it does approach this level, then BTFD will be the special of the day...

    ReplyDelete
  19. CommodityworldnewsAugust 23, 2011 at 7:59 PM

    At 2:00 skyscrapers in new york were ordered evacuated. Volume on the US indices dropped more than 50% after this 2:05. The federal government and banksters (banking gangsters) used this opportunity to send buy orders, raising the bid price of shares after 2:05pm. The buying pressure will continue with us government money until the general public can be convinced a rally is at hand, the general public and mutual funds buy the shares the banksters are selling them, and then the banksters short the market and the market falls. It's a pattern of behavior that requires light volume on the up days.

    ReplyDelete
  20. HorsyguyAugust 23, 2011 at 8:30 PM

    What ever the Govt tells us about problems they never tell the truth, period. We are pawns that corrupt politicians destroy us from the top. Watch this report about Japan and then remember what was being put out from the Govt, things like under control, it is not as bad as people are saying, it is being maintained. This video shows the lies pretty clearly.

    http://www.youtube.com/watch?v=DcOol3KJscc&feature=player_embedded

    ReplyDelete
  21. felixAugust 23, 2011 at 9:07 PM

    @ledbedder - got your response. Yes, i did mean $14.50US and I was looking at the dailies.

    However, this gap filling rule appears to hold, whether futures or not.

    I was losing money in Natural Gas, playing with futures. Not much action there at present, it seams... have to wait till the cheap (shale) gas is used up then she'll go up.

    Thank you for your insight.

    ReplyDelete
  22. felixAugust 23, 2011 at 9:09 PM

    @malcolm - http://www.etf-corner.com/markets/gld/page/2/

    This is good stuff! Thanx

    ReplyDelete
  23. felixAugust 23, 2011 at 9:12 PM

    @SGS - thank you for providing this forum. I think I said this already however, it begs repeating...

    I have learned more about investing and world economics in the short time that I have been here then I had in the rest of my life.

    A valuable product.

    ReplyDelete
  24. felixAugust 23, 2011 at 9:30 PM

    @Ledbedder - jeez! Not $14.50US but $41.50US ... fingers don't do what mind tells 'em to do.

    ReplyDelete
  25. highrise408August 23, 2011 at 9:39 PM

    $8000 Gold and $400 Silver 2013-2015: James Turk

    http://www.youtube.com/watch?v=JL6R7fOwvbI

    Enjoy.

    ReplyDelete
  26. LedbedderAugust 23, 2011 at 9:39 PM

    @felix: gotcha, now I know.

    ReplyDelete

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