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<p>[QUOTE="medoraman, post: 1905903, member: 26302"]It wasn't the PRICE that Comex reacted to, it was the level of leverage. </p><p><br /></p><p>Comex does not CARE what prices commodities trade at. Why would they? They make money on the trades, they only want more "action" like a vegas casino. However, they are also the "house". They guarantee settlements. So, they were looking at the market going up, (increasing their potential exposure), and the amount of leverage going up, (also increasing their exposure), and adjusted their margin requirements. If there truly was demand for silver at that price, real demand, then margin requirements would not matter. If people physically wanted the silver then margins are irrelevant. Since the market reacted the way it did, its proof the run up was all from speculators and not real demand.</p><p><br /></p><p>The CME has done this repeatedly, for decades, with multitudes of commodities. Its common practice, yet in the PM world its some huge damn conspiracy.</p><p><br /></p><p>Btw, "listen to the jive of the bearish types when silver was $30", umm, were we right? Is silver $50 today, or less than $20? If you listened to all of our "jive", then you made a whole bunch of money, right? Or, in other words, you sold your silver at $30 and can buy 50% more today with that same money. You're welcome.[/QUOTE]</p><p><br /></p>
[QUOTE="medoraman, post: 1905903, member: 26302"]It wasn't the PRICE that Comex reacted to, it was the level of leverage. Comex does not CARE what prices commodities trade at. Why would they? They make money on the trades, they only want more "action" like a vegas casino. However, they are also the "house". They guarantee settlements. So, they were looking at the market going up, (increasing their potential exposure), and the amount of leverage going up, (also increasing their exposure), and adjusted their margin requirements. If there truly was demand for silver at that price, real demand, then margin requirements would not matter. If people physically wanted the silver then margins are irrelevant. Since the market reacted the way it did, its proof the run up was all from speculators and not real demand. The CME has done this repeatedly, for decades, with multitudes of commodities. Its common practice, yet in the PM world its some huge damn conspiracy. Btw, "listen to the jive of the bearish types when silver was $30", umm, were we right? Is silver $50 today, or less than $20? If you listened to all of our "jive", then you made a whole bunch of money, right? Or, in other words, you sold your silver at $30 and can buy 50% more today with that same money. You're welcome.[/QUOTE]
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