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<p>[QUOTE=&quot;desertgem, post: 1174081, member: 15199&quot;]<p style="text-align: left"><span style="color: #000000"></span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000">Most likely to the margin increases required to hold silver contracts. There has recently been 2 margin increases and 1 more is expected soon.&nbsp; They all tend to mistakenly think the Comex owned by the CME group is a public company&nbsp; ( current stock about $280 share) and they make the commodity buy/sell basis for exchange, including metal delivery for a fee, is really the &quot;FEDS&quot;.</span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000"><a href="http://investor.cmegroup.com/investor-relations/stockquote.cfm" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://investor.cmegroup.com/investor-relations/stockquote.cfm" rel="nofollow">http://investor.cmegroup.com/investor-relations/stockquote.cfm</a></span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000">To make a story simple, they adjust the &quot;bets&quot; so there is a price for buying and selling, like the NYSE. When volatility of a commodity (or stock in case of the NYSE) becomes skewed so that the CME group is becoming lopsided, one way to limit volatility is to change the margin requirements of the Comex traders. As volatility increases or decrease too rapidly, this tends to limit financial liability. Think of it like a sports line. if too many people jump on one team, the odds are changed until each side is close to equal. The CME group has a responsibility to its stockholders to not lose money if possible.&nbsp; </span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000">Silver just went up too fast and there were not as many sellers as there were buyers, so a margin increase happened. Thus a speculator on silver contracts had to come up with more cash to hold the same number of contracts. If they had felt silver was a better deal, they would have sold other holdings to make the margin calls and kept their silver. They decided to sell the silver contracts for going price and keep their other holdings. Perhaps if silver had gone up .25 /day, it would still be going up, but when it hit 5% or more a day, limits had to occur for CME protection. There was no conspiracy. Silver may reverse and go up, but if you play the market, watch the volumes of buy/sell to decide when another change might occur ( by the CME and not the federal gov.) that would turn it downwards again. These types of changes are often ignored in analysis of how high and fast, or how low and fast, can prices change. IMO.</span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000">Jim </span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p><p>[/QUOTE]</p><p><br /></p>

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