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Did CME just cut margin rates on gold and silver?

CaptHenwayCaptHenway Posts: 33,257 ✭✭✭✭✭
in Precious Metals
Over on the dealer-to-dealer network one dealer said that late today margins were cut by 10-15%. Can anybody confirm or deny that?
Numismatist. 54 year member ANA. Former ANA Senior Authenticator. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and ANA Lifetime Achievement Award 2020. Author of "The Enigmatic Lincoln Cents of 1922," Available now from Whitman or Amazon.

Comments

  • MGLICKERMGLICKER Posts: 7,995 ✭✭✭
    Confirmed.

    Text
  • piecesofmepiecesofme Posts: 6,669 ✭✭✭
    not lowered enough to have an impact like the way it does when they raise it by this same percentage change.
    To forgive is to free a prisoner, and to discover that prisoner was you.
  • piecesofmepiecesofme Posts: 6,669 ✭✭✭
    Absolutely meant nothing because it needs to be cut significantly more to have an impact.
    To forgive is to free a prisoner, and to discover that prisoner was you.
  • CaptHenwayCaptHenway Posts: 33,257 ✭✭✭✭✭
    Thank you!
    Numismatist. 54 year member ANA. Former ANA Senior Authenticator. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and ANA Lifetime Achievement Award 2020. Author of "The Enigmatic Lincoln Cents of 1922," Available now from Whitman or Amazon.
  • derrybderryb Posts: 38,304 ✭✭✭✭✭
    normal considering spot price movement

    Gold does not need to replace currencies to reshape financial power. It only needs to replace collateral.

  • RedneckHBRedneckHB Posts: 19,981 ✭✭✭✭✭


    << <i>normal considering spot price movement >>



    Exactly. Lower price requires less capital to maintain a position, just as a higher price requires more capital.

    No conspiracy or manipulation.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • derrybderryb Posts: 38,304 ✭✭✭✭✭


    << <i>

    << <i>normal considering spot price movement >>



    Exactly. Lower price requires less capital to maintain a position, just as a higher price requires more capital.

    No conspiracy or manipulation. >>


    And less capital enables more unfunded positions. Sorta like manipulation. image

    Gold does not need to replace currencies to reshape financial power. It only needs to replace collateral.

  • RedneckHBRedneckHB Posts: 19,981 ✭✭✭✭✭
    All positions are funded.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • derrybderryb Posts: 38,304 ✭✭✭✭✭
    my bad. more "minimumly" funded positions. Lower margins mean more positions for the same up front money.

    Gold does not need to replace currencies to reshape financial power. It only needs to replace collateral.

  • WingsruleWingsrule Posts: 3,231 ✭✭✭✭
    Over the last few years, there has been no correlation between the direction of the margin change and the direction of the price of silver over the following week.
  • MGLICKERMGLICKER Posts: 7,995 ✭✭✭


    << <i>Over the last few years, there has been no correlation between the direction of the margin change and the direction of the price of silver over the following week. >>



    Logical to adjust margins to clearinghouse risk. Reckless to use it to tamp down fast markets.
  • coinrollhuntercoinrollhunter Posts: 280
    Mglicker, should crypto be banned as well for saying the exact same thing I said? Or should I be banned because you don't like me? Have you lectured crypto?
  • jmski52jmski52 Posts: 23,730 ✭✭✭✭✭
    Logical to adjust margins to clearinghouse risk. Reckless to use it to tamp down fast markets.

    It depends. If you consider that these are leveraged positions, I do agree that it makes sense to stimulate trading when the market is slow and to slow things down when the market gets heated up.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • MGLICKERMGLICKER Posts: 7,995 ✭✭✭


    << <i>Logical to adjust margins to clearinghouse risk. Reckless to use it to tamp down fast markets.

    It depends. If you consider that these are leveraged positions, I do agree that it makes sense to stimulate trading when the market is slow and to slow things down when the market gets heated up. >>



    Disagree. Margin hikes should be used only to minimize risk of default in a potentially fast market. Conversely, lowered in a perceived less volatile environment. To attempt to alter trading patterns is open to abuse.
  • RedneckHBRedneckHB Posts: 19,981 ✭✭✭✭✭


    << <i>Logical to adjust margins to clearinghouse risk. Reckless to use it to tamp down fast markets.

    It depends. If you consider that these are leveraged positions, I do agree that it makes sense to stimulate trading when the market is slow and to slow things down when the market gets heated up. >>




    There is no stimulation. It simply costs less to buy 5000 oz silver today than a month ago therefore less capital is required to initiate and maintain a position.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • jmski52jmski52 Posts: 23,730 ✭✭✭✭✭
    There is no stimulation. It simply costs less to buy 5000 oz silver today than a month ago therefore less capital is required to initiate and maintain a position.

    Okay then. Facilitation.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
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