Wednesday, August 24, 2011

It's official: CME mafia raises gold margin

11:57 am (Hawaii) Not that it matters to a lot of traders and investors, but the CME mafia made it official. Bloomberg reported 24 minutes ago that the margin requirement in gold was raised 27%.

I'm in cash, have my little sack of physical gold and silver, so my stress is almost nonexistent. In fact, if the CME mafia has its way and spot price in gold plunges off a cliff to below 1700, I'm ready to re-enter. Right now DZZ is holding at 4.90-4.94. I noticed it climb to 4.94 a little while ago, but that's the extent of it. If the market were really surprised by the CME mafia move, DZZ would be well over 5.00 by now.

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