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Post by duffminster on Jan 20, 2011 21:22:59 GMT -5
Hello All, This story is really important to those who are trying to understand the blow off in gold and silver and to a lesser degree the commodity complex today. Again, you never get this information from the mainstream. In my case I picked up the story from ZH. No Surprises Here. Geithner talks to the Bernank, says China is flying in and we need to find some way to make the coming hyperinflation look less threatening during the visit so that we can cut a deal on letting the yuan rise against the dollar so that we can get even more hyperinflation. He then also calls his friends over at Crimex, says we need to do some to knock commodities down but especially silver and gold, but it can't be too obvious. So Crimex bosses say "done" and they RAISED MARGIN CALLS about 6% on gold and silver and a few other commodities to make the raid look not so obvious. In the meantime the Bernank calls his friends over at the JP and their counterparts in the UK and that is the HB and tells them that Crimex will be bumping the margin calls and get ready to bump up your short positions strongly for a nice short term bump and to try to flush all the weak longs out and hopefully flush the other uncommitted and unsure gold and silver longs out. Then the other members of the team do the PR work calling in the normal shills and press people to make negative statements and certain "analysts" to make gold negative predictions. Thing of it is, more and more investors, large and small no how this game is played and the one's who are smart, just take these major attacks as an opportunity to take delivery on more physical or buy trusted paper proxies, like PSLV and not the other one with the same letters except no "P" which the JP is the custodial for and which can be used in the attack on silver. Here is the as always early and excellent article from the Tyler at the ZH: www.zerohedge.com/article/inflationary-guerilla-tactics-resume-comex-nymex-hike-margins-gold-silver-cracks-spreads-andInflationary Guerilla Tactics Resume As Comex, Nymex Hike Margins On Gold, Silver, Cracks, Spreads And Other Products excerpt: "...Wonder why the smart money was rushing headlong out of gold and silver over the past few days, and especially today in the AM session? Here is your answer: in tried and true fashion the Comex just hiked margins in gold, and silver by about 6%, and threw in a few other commodities to mask things up. And unlike the last time it did it, when it could at least pretend to justify its actions with the surge in gold price, this time with the PM complex dropping, we wonder what excuse the CME will use this time. Initial and Maintenance margins were just increased in everything from 10 Tr Oz Gold Futs, Comex 100 Gold Futures, Comex Miny Gold and Silver, E-mini Gold and Silver, Comex 5000 silver futures to Silver trade at settle. Also added were Copper, Iron Ore, propane, butane, and other nat gas. Most notably, and confirming that the administration and the money printing authorities are terrified by the surge in crude, the CME also hiked margins in various refined products and coal. The official scramble to "contain" the aftermath of Bernanke's lunacy is accelerating. We wonder when REDI, Prime Brokers and E-trade will comparable collapse purchasing margin for stock trading accounts. Of course, as with all other such superficial market interventions, the impact is shallow and is overrun in a matter of days. And no...there was absolutely no leak this time. We promise...." Duffminster www.duffminster.com
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