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View Full Version : More bad news for copper and .....



Copperhead
10-03-2011, 07:51 PM
What is more troubling is that the CME just made sure the tens if not hundreds of billions of Chinese copper collateralized Letters of Credit just lost even more value following yet another margin hike in Copper, which raised initial and maintenance margins by 15%. If China perceives US actions as provocative (and it made very clear that US overtures in Taiwan already are), we may just see an 'oopsie' moment tomorrow when the Mainland decides to offload a few billions in US Treasurys. And the cherry on top was a 28.6% margin hike in Platinum: a direct warning to gold and silver longs once again.

http://www.zerohedge.com/news/copper-set-tumble-after-cme-hikes-copper-platinum-margins-once-again

quitsurfing
10-03-2011, 07:54 PM
Great info, thanks for the post and link.

bagholder
10-04-2011, 01:33 AM
I was wondering why Teck was taking such a beating today. That explains it.

Now I'm still wondering how traders always seem to get wind of these margin hikes before they hit the news wires. It happened with silver and gold last week too - the big drop happened before the margin hike announcement.