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<p>[QUOTE=&quot;WingedLiberty, post: 1243011, member: 26030&quot;]The Chicago Mercantile Exchange is raising margin requirements on gold on Friday morning (8/12/11).&nbsp;&nbsp; It will be interesting to see how the price of gold reacts to that change.&nbsp; When the CME raised the margin on silver, four times in a week as I recall, silver dropped nearly 40% (from $50 to near $30) in a few days.</p><p><br /></p><p>My own theory is there are many fewer buyers of gold on margin than there were in silver.&nbsp; That is, there is/was much more speculation in silver.&nbsp; Gold is a safety play by investors, many hold 10% to 20% gold in their portfolio for ballast and an inflation hedge -- and many countries and central banks hold gold as a diversification away from the dollar and they don&#039;t hold that gold on margin.&nbsp; What I do not know is how much gold is held by the multi-billion dollar hedge funds, gold in those funds could very well be margined, I have no idea. </p><p><br /></p><p>In any case, just watch the price of gold for the next 24 to 48 hours, and you might be able to get a good gauge on the amount of margined speculation in the yellow metal.</p><p><br /></p><p>[ATTACH]133155.vB[/ATTACH][/QUOTE]</p><p><br /></p>

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