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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: Bruce Robbins who wrote (7556)	2/7/2003 10:21:28 AM
From: Jon Matz	Read Replies (1) \| Respond to of 39344

Thanks Bruce, I just found it too. Why do you think it will not have a large impact? The speculative longs don't have deep pockets to cover the increased margin requirement, while the "Commercials" likely do. Even some of the speculative longs will have to cover at least some of their positions to cover the added margin requirement. I suspect a steep decline in POG over the next couple of days.

To: Bruce Robbins who wrote (7556)	2/7/2003 10:21:35 AM
From: Canuck Dave	Respond to of 39344

I agree. Same rules apply to shorts. Given the volatility in the gold price, it's probably prudent of Comex to do this. CD

To: Bruce Robbins who wrote (7556)	2/7/2003 11:54:37 AM
From: Silver Super Bull	Read Replies (4) \| Respond to of 39344

Bruce, Actually I think the increasing of gold margins is very important, for a variety of reasons. First, the lesser-capitalized will be most impacted. We're most likely talking about the small gold longs. Second, since when are margins increased substantially after such a small move? Even the most generous estimate of this move would be 380-330 gold, or $50. $50/$330=15%. So they are substantially increasing gold margins after a maximum 15% move? A 15% move for a commodity is nothing. I would have expected an increase in margin at perhaps $425 or $450 gold at the earliest. And the last thing that bothers me is the "quick notice" given. They seemingly announced this late Wednesday for implementation by the end of the day Thursday? That's bullshit. Most likely it contributed to yesterday's decline, as those most impacted were scrambling to adjust their positions on such short notice. Anyone who didn't have instant awareness of this move would probably be alerted sometime on Thursday, giving them little time to react. And for those who say the longs and shorts are equally impacted by this, yes, that is true in theory. But those who think this way should start looking and thinking about the COT numbers and who is holding these positions. Also, just the given fact that gold is in an up move would mean that this trend will be most significantly impacted. And lastly, when is the last time COMEX changed margin requirements when gold or silver were declining?? DB