The CME (chicago mercantile exchange), which runs the NYMEX, or home of the futures and options trading sent advisory notice 10-465 late Monday. This notice informed everyone of the margin changes in precious metals that took effect at close of business today, Tuesday November 16th.
You see all the increases for yourself on the official advisory from the CME at the bottom of this reading.
From our standpoint, it makes last weeks increase look like the emergency measure we thought it was. Silver was making a direct bee line to $30 the day that the CME raised the silver margins last week, but no changes to any other metals were issued. Now that a week has passed and they actually had some time to evaluate and calculate the situation, all the metals margins have increased. Including a second increase in the margins for silver.
Some say the increases are nothing out of the ordinary, and are only measures to insure that the investments made are sufficiently covered with the proper amount of metal. Sounds great! We hope this is true… that the CME’s main focus is the protection of investors, and not just a couple of big banks that hold a considerable amount of shorts in silver.
In a perfect world…
We are in the middle of a storm at the moment, and the CME has changed the rules once again. This will keep a lid on the metals for the short term. But as the headlines read not long ago, “Did the big banks lose control of the silver market”.
In reality, these margin increases are like the cap that BP placed on the oil well. Didn’t stop it, just slowed it down for the time being.
Another great view point at zerohedge here;
You can find the official advisory notice from the CME here;