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Originally posted by Rockpuck
Someone liquidated their PM holdings it would seem.. PM's have had a nice long rally though, nothing more than a small correction.
Originally posted by Vitchilo
A small correction. Silver down 25% in 2 days.
It seems to me big banks are selling PMs to find money to fund their bankrupt butts.
Case Closed: CME Hikes Gold, Silver, Copper Margins
And there you have it: CME just hiked gold margins by 21%, silver by 16% and copper by 18%. Mystery solved. - Source
Gold Liquidations Open Thread
Submitted by Tyler Durden on 09/23/2011 16:44 -0400
Update: Yep - it was a leak of a margin hike as just confirmed. Which may very well mean nobody actually had to liquidate, just the herd thundered, as it always does, in the wrong diraction. Expect gold to actually rise on this news.
Everyone knew they were coming... Just not when. Now that the gold liquidation frenzy has struck we still don't know much if anything: who was it, why, and where did the money go? Some rumors have it as a bank in Central, Eastern Europe unwinding massive PM positions, which if true is paradoxically bullish for gold and silver as reported previously, as it means the already tight liquidity situation in Europe is about to come to a head, possibly as soon as this weekend. Others speculate it was a plain vanilla satisfaction of collateral requirements by a big funds who may or may not be liquidating and who have sizable gold positions. Or, the simplest explanation, was it simply an expectation (and leak) of a gold margin hike? For all these questions and more, as well as to vent over anything and everything, use the following open thread. - Link
Originally posted by Rockpuck
Seems like PM's lost a large percentage for a relatively small Margin Hike, consider back in April the Margin Hike was 68% and silver fell 30%. Seems to me that makes Silver today a good buy, it's correction can't continue to much longer if at all.
Investors are moving out of stocks and investing in the US dollar, writes Brendan Conway in The Wall Street Journal. He explains some of the other defining factors in the latest crash:
“A weak reading on manufacturing in China contributed to the slowdown fears. Adding to the grim mood was a lack of appreciable progress in containing Europe’s debt crisis, which has weighed on markets for months”
World Bank president Robert Zoellick demanded the major economies take decisive action. ”Europe, Japan, and the United States must act to address their big economic problems before they become bigger problems for the rest of the world,”
UK Prime Minister David Cameron warned that the world is nearly “staring down the barrel”
The effect of the Japanese earthquake, high oil and fuel prices is creating a drag on growth. But fundamentally we are still facing the aftermath of the world financial bust and economic collapse in 2008.”
From Reuters: "French banks are solid and can face any risk from their exposure to Greek sovereign debt, the head of the Bank of France, Christian Noyer, told a French newspaper, adding that there was no secret plan in place to recapitalise them."
Noyer added that if banks expressed the need for it, or in the case of an "extraordinary event", they could appeal to a public support mechanism created in 2008.
The French government set up a plan that year that made 360 billion euros available to banks, 40 billion of which would go toward strengthening their capital base and 320 billion of which would help them refinance via a public entity called the SFEF.
Originally posted by DangerDeath
reply to post by Vitchilo
France will also have to answer for what it did in Libya...
Just to mention it.
Finally, little by little, the fog of toddler-like euphoria over any and every most recent European bailout plan is starting to lift, this time with the S&P finally speaking up and reminding everyone of what they already know: namely that an expansion of that now-daily deux ex machina, the EFSF, will "potentially trigger credit rating downgrades in the region, a top Standard & Poor's official warned. David Beers, the head of S&P's sovereign rating group, said it is still too soon to know how European policymakers will boost the European Financial Stability Facility, how effective that will be and its possible credit implications....But he said the various alternatives could have "potential credit implications in different ways," including for leading euro zone countries such as France and Germany." Get that? As Zero Hedge said back on July 21, the European bailout Catch 22 is now once again front and center, namely that any expansion in the EFSF will lead to a downgrade in one of the two Eurocore countries, France or Germany, and should France get cut from AAA (which it will), the entire burden of footing the European bailout bill will fall on Germany. And if Germany is also downgraded to AA, kiss your SPV CDO goodbye, and with it Europe.