Margin increase on Gold and Silver...what will be the impact on Monday?

CME Group Raises Comex Gold Margins By 21.5%, Silver Margins By 15.6%

23 September 2011, 4:55 p.m.
By Debbie Carlson
Of Kitco News
http://www.kitco.com/

(Kitco News) - The CME Group is raising the margins needed to trade Comex gold and silver futures are being increased by 21.5% and 15.6%, respectively, and the change will take effect after the close of business on Monday, the exchange said late Friday in a press release.

The exchange is also raising copper futures margins by 17.6%.

The move by the CME Group to raise the margin needed – also known as performance bonds – to trade gold, silver and copper futures on the Comex division of the New York Mercantile Exchange comes as prices for the metals plunged during the past two days as part of a sell off in financial markets in general. The CME Group is the parent company for the Comex and Nymex.

The CME Group raised margins in other markets on Thursday and on Friday it also announced higher margins for long-term U.S. Treasury bond futures.

Last year Feb i bought Gold investment (Public) @ RM 122.5 ..
for sure now i've profit since dis few months the gold increase non stop.
should i sell ? OR wait for the gold drop and purchase again ?
assume if i bought at RM 165, i might need to take long terms to
gain profit.

another account for GDA (CIMB) - 1sttime i bought at 168,
2nd time at 178.8 ....
i'm also thinking of selling my GDA, but now haven contra yet ...

i worry the gold price will drop again , sumore the public bank drop... omg ..
no eye see leh.. now totally "LOSS", no profit yet ..

I think for those that haven't get any profit from their gold investment (like me), better keep it first, don't sell now.

A lot of investors are expecting deflation will come, that's why they dump their gold.
But I believe that US won't let deflation happen.
They will offset this deflation by increase money supply.
By that time gold price will increase back.

This post has been edited by o0o0: Sep 24 2011, 09:47 AM

dont worry on MY price, since USD have been 3.2 now, i think MY/g wont drop much, i think for 1656.1 will be around RM169/g

This post has been edited by Alexdino: Sep 24 2011, 10:45 AM

might see more blood on monday/tuesday coz options expiry. depending on the situation, i'm looking to reload again on wed

why wednesday bro? hehe

To me it easy, you just sell the profit different between buy and sell. Example. Now gold price drop to 166 and the different between this is about 40.

If you have 100 gram during first buy.

100 gm x 122 = 12200
Now
100 gm x 166 = 16600

So the different is 4400 / 166 current price = 26.506 gm.then you just sell the 26 gm of your current gold and get the profit first.

depending on situation ma

i'm quite concerned actually if this is just a major correction or something worse, a total crash. A look at the bubble mania chart:



gold chart for past 1 year:



now it gets scarily familiar with silver



If gold drop to around 1650 next week, that should be a good bargain. But, if it drops below 1200 then the bull is likely broken, I'd wait some time before going in again.

Silver might drop to around 25. If it drops below 20, then another bad news...

Now these are based on technical indicators, and to me, at the very least precious metals will not go PN4 @ total loss to your investment. It's price may get suppressed now but sooner or later it will come up again. If you are patient long enough, you will always get to sell higher

And another, the fundamentals have not changed either i.e. world economy, fiat money, debt crisis, etc. and in the long run precious metals should be way more expensive than now. I'm not that good at fundamentals, perhaps our gold expert prophetjul could share his views here

CAVEAT: DO NOT BUY/SELL BASED ON MY COMMENTS HERE AS THESE ARE JUST MY OWN OPINIONS BASED ON WHAT I READ. DO YOUR OWN DILLIGENCE BEFORE INVESTING.

I would say it depends on Monday. If prices drop below 1,600 then its anybody's guess as to where gold will end up. But if it meets resistence at say 1,630 and then starts to increase, buy. But if gold is in the 'blow off phase' then its doomed.

This post has been edited by cybermaster98: Sep 24 2011, 05:16 PM

I have gone through those China forum and they predict what will happen next week as below :

-If you realize, the gold price raised to 1650 at the very end of the market, right before market close after whole day fall. This is probably the illusion/trap that created by US dude. Many Asia people will though the fall is over and start to buy in, eventually pull the price up before US market open.

-As soon as US market open, US dude will start to dumb their gold with 'higher' price. A good move to lure Asia investor fall into the trap, putting Asia dude money into own pocket as investor grab this chance to run away from the market.

-Always remember, US dude is the 'banker/dealer' in this game. Do you think they stupid until make the price greatly fall and let you buy in at very low?

-The fall is just start, many factor shown that it may fall to as low as 1200 (means the bull market is over for gold) or 1400 (take time to recover, 6 months perhaps), especially when USD continue to strengthen.

-Gold will continue to raise in the future, but not in short term. Go ahead to buy if you looking for long term investment.


CAVEAT: DO NOT BUY/SELL BASED ON MY COMMENTS HERE AS THESE ARE JUST MY OWN OPINIONS BASED ON WHAT I READ. DO YOUR OWN DILLIGENCE BEFORE INVESTING.

Darn i bought 20g on firday 11am.. when it was RM 180/g at UOB.. damn oh damn

anyone buying using public bank ?

still thinking wanna invest or not, rather than put my $ in FD =)

This post has been edited by ciohbu: Sep 25 2011, 08:28 AM

i believe we are in denial stage....

but i believe US will want to lower their usd, making their export more affordable to stimulate the economy, then QE3 is coming as what was seen 3 years ago or 1 year ago..

Since July '11, gold price has been breaking unprecedented new highs so the euphoria can't possibly continue without any severe retracement in its "bubbling" price.

Anyway, I've made most of my physical gold purchases in bulk a few years ago when it's just slightly below USD1000/oz before it crushed that price barrier soon enough within the next few months and has since cashed out at slightly above USD1800/oz just recently except for 1 special type of gold coin which is to commemorate the millennium year of 2000; "Syiling Peringatan Tahun 2000" that has a face value of 500 Ringgit Malaysia imprinted on it with an impressionable caption of "Menuju Kegemilangan Abad Ke 21" that cost me a premium of RM2000 per coin piece.

Yeah, I've been dabbling in physical gold since year 2000 and prices were dirt cheap then, a lot of wonderful fond memories there however got to part with almost everything and hopefully, will not regret it. It seems to me like the time is ripe to consider buying stocks now as prices continue to break new lows in equities.

I still remember there was a custom design pure gold ring weighing 8gm which I've bought can't remember exactly how much it was though shouldn't cost me more than RM350 when I was younger in year 1992 for my own use and many years later it'd served as the perfect wedding ring for my wife in year 2002. I did come through to give her another one more ring that fit the occasion the following year and it's made of pure platinum adorned with a tiny diamond. (I'll follow up with pics a bit later on as I've got to makan breakfast outside now).

A few digital images captured by Canon PowerShot SX1 IS;-
Pure platinum ring weighing ~6gm (top), RM500 Millennium commemorative gold coin (center) and finally, pure gold ring weighing ~8gm (right)

This post has been edited by MOBAJOBG: Sep 25 2011, 10:10 PM


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Frank Barbera explains Why Gold & Silver Will Head Higher After This Correction: The Central Banks are getting more and more desperate it does not seem that there is anything that can take the precious metals down except CME margin requirement hikes , the declines have been very concentrated in very short periods of times these are excellent discounts that gold and silver hoarders should take advantage of .... - youtube

Dont buy gold, it's doom next week gold will definitely fall to 1200 for sure. Go for FD for now atleast!

I brought mine at RM179.11/1g (33g) & RM184.51/1g (12g) two week ago, right now already lose RM5xx in value. The only option for me now is to wait for another 5 years to gain back profit.

Based on what theory, you forecast or predict that gold will plunge to 1200 per oz by next week?

If all of you worried about the DOOM of the GOLD PRICE, Why not try to Ar-Rahnu your physical gold. At least you can take 65% of gold value CASH. And put the cash to to other investment channel such as FD or ASNB trust fund which is promised 6% min payout annually.

I done this already with my 1/2 Oz Kijang Emas. AR-RAHNU technique.. manipulate your physical gold..

They charge 14% per annum which is higher than 6% FD.