Friday, February 10, 2012

US Commodity Exchange lowers margins on gold silver and copper

It has been a while, but the Chicago Mercantile Exchange has decided to lower margin requirements after raising them six times last year on gold, silver, and copper.  The exchange gave no real reason for the new policy, but on the surface, this should be good news for metal investors.

It has been so long since the CME cut gold and silver margins that frankly we are a little bit stunned... In an extended announcement, which saw outright margins for virtually every commodity get cut, the CME just lowered Initial and Maintenance margins of gold (by 12%) and silver (13%), to $7500 maintenance for GC and $16000 maintenance for SI. Did the paper bull trap season just open? And how long before these are re-hiked by 15%, 20% or more? For now, however, this is certainly near-term bullish. - Zerohedge


John Turner says:

interesting point of view on the subject but I think the issue should be viewed from several points of view, here would be one of them ..

Post a Comment