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View Full Version : CME Increases Gold, Silver, Palladium Margins



SilverMiner
02-13-2010, 01:00 PM
The CME group announced (http://www.zerohedge.com/article/cme-increases-gold-silver-palladium-margins)that margins for metals futures contracts on the NYMEX and COMEX will rise beginning February 12 by approximately 25% across various classes.

Tartosa
02-14-2010, 06:19 AM
Interesting, I noticed it only applied to speculators...

SilverMiner
02-14-2010, 12:35 PM
Interesting, I noticed it only applied to speculators...

Yeah. So one might expect a short term downward spike as this will cause some sales to cover margins, but long term it seems bullish. Would you agree with that Tartosa?

Venturer
02-14-2010, 12:52 PM
The increased margin requirements are designed to keep as many small speculators as possible, out of the upcoming run to $1500.
There could be a short term spike down to force the long spec's to cover and then with the higher margins, keep them from getting back in. That is my guess as to what will occur, but this is overall a bullish sign. If the Commercials had been adding to their short positions this could be seen as bearish, but they have been have decreasing their shorts.