Friday, November 12, 2010

Silver Margin Hike underscores the need for Physical Bullion Ownership

By Jeff Berwick, The Dollar Vigilante:

On November 9th the Chicago Mercantile Exchange said it will raise its silver futures trading margins by 30 percent to $6,500 per contract from $5,000 effective November 10th setting off a rapid sell-off in the metal. No other margin requirement on any other metals was changed.

According to Reuters, "Exchanges often raise margins to mitigate risks as price volatility increases."

.......Clearly silver was targeted as having "gotten too high". When was the last time margin requirements were raised on US Treasuries which are at all-time highs?....read in full

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