Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : A to Z Junior Mining Research Site -- Ignore unavailable to you. Want to Upgrade?

To: Silver Super Bull who wrote (3184)	2/9/2003 10:08:28 AM
From: 4figureau	Respond to of 5423

Junior List new 52 week highs 321gold.com

To: Silver Super Bull who wrote (3184)	2/9/2003 11:24:26 AM
From: 4figureau	Respond to of 5423

Sinclair on Margin: >>Subject: What are the implications of increased Comex Gold Margin Requirements? Answers to an Important Gold Community Question What are the implications of increased Comex Gold Margin Requirements? Increases in the margin requirements by Comex for gold trading: 1. Increased margin requirements effect the short seller as well as the long buyer, therefore it does not disfavor either side of the gold equation. 2. Increased margin requirements are not retroactive to positions already in place, therefore it has NO effect on the open interest (contracts already in place). 3. It will increase maintenance margins costs. That is the cost of contracts when the price moves against the position, but this is in my opinion doing the trader a favor. The margin clerk is your best friend. Never meet a margin call on any commodity. Only meet a margin call on gold or silver, if your clear and defined intention is to take delivery and you have put aside the entire cost of the gold and/or silver. What have you done for gold? 4. Increases in margin is one of the characteristics that market-wise confirm the existence of a BULL MARKET in GOLD. Just as reduced margin requirements are a clear confirmation of a BEAR MARKET in GOLD. Conclusion: Increased Comex gold contract margins historically have had no meaningful or even medium-term effect on price. It is a sign that confirms my opinion that we are in a long-term bull market in gold. Margins on gold trading on the Comex will be at 100% before this Bull Market in Gold is over.<< financialsense.com