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<p>[QUOTE="SilverSurfer, post: 1173805, member: 21603"]I'm so glad this is happening. I hope a few of you were wise enough to sell when the price was at the lower $40 range. The reason for the sell off is the margin increase. I believe the requirement for a 5000 ounce contacts was around $11,000. So, any schmoe trader could buy $200,000 worth of silver for $11,000. Then the margin was raised 3 times this week. I hear that the new margin is going to be $21,000 for a 5000 ounce contact. This won't stop traders in the future from buying $200,000 worth of silver with $21,000 up front. But it does force those currently over leveraged to put up more money to keep their contracts in place. If you own the physical silver and are not over leveraged with some silly contract, the margin hike doesn't affect you. Thank you Comex for making silver cheaper for all of us serious physical buyers to purchase at a reduced cost. The lesson here is to own the physical and not to be over leveraged with some paper contract.</p><p><br /></p><p>BTW, this is proof that silver can and will exceed $50 an ounce, once the sell off is finished and the price starts to advance again. Nothing fundamentally has changed. The only change is the weak hands have been forced to sell causing further selling. This can't go on forever, just as the price spike up wasn't forever.[/QUOTE]</p><p><br /></p>
[QUOTE="SilverSurfer, post: 1173805, member: 21603"]I'm so glad this is happening. I hope a few of you were wise enough to sell when the price was at the lower $40 range. The reason for the sell off is the margin increase. I believe the requirement for a 5000 ounce contacts was around $11,000. So, any schmoe trader could buy $200,000 worth of silver for $11,000. Then the margin was raised 3 times this week. I hear that the new margin is going to be $21,000 for a 5000 ounce contact. This won't stop traders in the future from buying $200,000 worth of silver with $21,000 up front. But it does force those currently over leveraged to put up more money to keep their contracts in place. If you own the physical silver and are not over leveraged with some silly contract, the margin hike doesn't affect you. Thank you Comex for making silver cheaper for all of us serious physical buyers to purchase at a reduced cost. The lesson here is to own the physical and not to be over leveraged with some paper contract. BTW, this is proof that silver can and will exceed $50 an ounce, once the sell off is finished and the price starts to advance again. Nothing fundamentally has changed. The only change is the weak hands have been forced to sell causing further selling. This can't go on forever, just as the price spike up wasn't forever.[/QUOTE]
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