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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Ahda who wrote (41528)	9/29/1999 2:37:00 PM
From: IngotWeTrust	Respond to of 116764

U R welcome. A teensy fact about margins: Commodity margins are normally 3-5% of the total value of a contract (in this case ounces of gold=100 times POG) When the value of the commodity, (in this case POG) rises so dramatically AND looks like it is the real McCoy instead of an aberation... ...the various regulatory agencies, (in this case the NYMEX) step in, do the math, and hike the minimum required to play of both speculators and hedgers alike. It is a longer way of saying a 25% increase in the price of gold in 7 days increases the total value of the 100 oz Gold NYMEX contract, and now you have to send in more money to your broker since 3-5% is now calculated on a higher total value. Still the best bang for the speculator buck around, percentage-wise, when compared to the 50% margin rate currently levied by the F/R on stock speculators. O/49r