The unintended consequences of the CME’s margin hikes; a new global silver standard

I’ve been saying on this site for a couple of years now expect the CME to raise margin rates as part of the tools they use to keep the price of silver from rising. Weak, leveraged hands panic and sell. Today, as the SLA keeps buying, and as they keep raising the margin rates, we are witnessing something truly incredible. Since the SLA owns silver for political reasons, not trading outcomes, at some point, the majority of silver owners around the world will be 100% cash owning physical silver owners – and this then becomes a de facto precious metal standard guaranteed to destroy the dollar (as the world reserve currency). By trying to protect the dollar, the regulators are backing into a silver and/or gold standard. To the millions of SLA members around the world, keep spending $5, $10, whatever loose change you have on silver rounds. The dollar is a dead currency walking. We are headed for a global political revolution ending with silver and gold as the dominant medium of exchange.

22 comments on “The unintended consequences of the CME’s margin hikes; a new global silver standard
  1. ilikesilver says:

    Let the weak sell all they own. I’m buying. Buy silver, shaft JP Morgan and the rest.

  2. Marc Authier says:

    Hey the bearish sentiment is so unanimous that it’s one sure sign of a bottom. By the way, what has changed since then in USA and the rest of the world ? NOTHING. Meanwhile United Satan is printing 5 billion dollars per day.

  3. Regina says:

    Silver is STILL in backwardation! If supply was so abundant and bubbly why do they have to raise margin requirements every 5 min,? What are they so scarred of?
    KEEP YOUR POSITION!

  4. daithi says:

    gonna take another 500 oz at 36 Dublin SLA

  5. daithi says:

    Just thinking….if there is a major spread in the next few weeks between paper price and over the counter price will the big dealers like Goldmoney and Bullion vault keep their commissions at 4+% over paper quoted spot?

  6. Martijn says:

    So owning physical silver or a 100% cash contract is the same as a silver standard?

    Sweet dreams guys, the wake up won’t be so nice.

    I have never heard more nonsense for a long time…

    Holding silver is just holding silver, it has nothing to do with a silver standard or dollar backing, now does it?

  7. Badsey says:

    SLA’s physical silver buying power is increasing by the hour it seems and the silver supply has not changed.

    I think the globalists made a mistake here since people were starting to bring out their old silver (to sell) during the $50 silver media (Hunt) push. Maybe a few rush sellers, but media excitement is gone. I would have kept it close to $50, but not ever letting it go over, then slashing it down to ~$45 just to show I had control over the fiat silver slaves.

  8. Bart says:

    This is the shakeout of the speculative paper
    players wich wealth will be scouped up by
    the real SLA soldiers by collecting the real
    silver at lower prices.Keep on gambling
    paper succer players hahaha morons.
    This bull will only be good to the people
    owning the real stuff,not the ones who
    trade in and out.Happy silver bug with
    fingers on the trigger to place order to
    increase the stash and I am not alone.

  9. Marc Authier says:

    Has the dollar supply, the yen supply, the euro supply, the rouble supply dried up. Please cut the crap. We are in the 80’s. At the time interest rates on US treasuries were 22%. And Hunt Brothers were being squeezed. Today treasuries offer the enticing 0% interest rates. So does the Japan and many many other countries. Anyways the bearishness is so prevalent that its the best contrarian sign. Calm down.

  10. Marc Authier says:

    We are not in the 80’s I meant. Naturally.

  11. Badsey says:

    I hope paper silver goes down to $15 or even less. =I can buy 4x more physical that way.

    Fiat is fiat = those Silver Certificates were only good once you received your Silver. Fiat = 100% worthless = No Standard.

    This is a short-term globalist fiat delay tactic. =Bad for paper silver, good for SLA.

  12. IanJames says:

    Silver is indeed in the process of correcting – correcting upward that is to its monetary inflation adjusted value (the new set point), which right now is rising at a faster rate than the increase in the price of silver. The supply vs demand for the physical metal as a hedge against money supply increase is the proportional band that will keep driving the price of silver back up close to its setpoint. The gold to silver price ratio of about 17:1 (based on historical data) is the integral component that will eventually line the price out on the setpoint. After that, the setpoint keeps rising with money supply increase of course in a nice moving average-controlled manner (theoretically).

    Since the slave-owner or banker-owned monetary system that shackles us is debt based, the money supply has to keep rising in accordance with ((P+I)^n) / (P+I)^n-1)) or until a bond market collapse and a bloody revolution with plenty of guillotines blows it all up. Until then the price of silver and gold keeps rising.

    This little Fibonacci retracement of the past few days ( ultimately 50% of the rise from 33.00 to 50.00) is a natural market phenomenum and nothing to get worked up about. And I just want to say that Fibonacci, the mathematician, was a freaking genius. If you don’t know who he was I suggest you find out.

    The process is still in an upset condition with the price of silver trying to correct upward, much higher. Don’t get too hung up about when, the market does not care too much about time. Bottom line, if you own silver your spending power is protected and the endgame could be well beyond a bondmarket implosion.

  13. HUH? says:

    I’ve noticed many bullion dealers are getting higher premiums than last week and some charge those premiums plus an over spot price. Physical silver really hasn’t gone down in price as much as paper silver.

  14. Steve/NotLiverpool says:

    I dont see any price falls to speak of on ebay, a tool I use to gain an idea of the real world value of my silver. There silver is still £38+\oz in kg bars, and £40 plus for coins.

    I see a bounce back on the spot price tonight, either way, I don’t expect silver to fall below $40.00.

    Stand fucking firm soldiers.

  15. Long Silver Johnson says:

    Dip baby Dip so I can buy baby buy!

  16. rash says:

    The way I see it..How could one BASH the LONG HOLDERS of PM’s i.e.Silver..U r fools to talk down those who own and hold “GODS-MONEY” since the beginning-of time..Those who bash the long-holders are just prostitutes and slaves for they’re fiat master..We holders represent freedom fighting…U guys represent stat quo and accepting the fiat master’s salve trade./AWAKEN form ya slumber and joint the fight for FREEDOM

  17. Mohsin says:

    I’m still buying.

  18. Joe9083 says:

    @daithi.I was in Dublin to day and i spotted a silver eagle in a pawn shop window display,the guy wanted 45 euro for it,proving that there is two prices for silver,the paper price and the real price.P.S. I deal with gold core,where do you get yours.________ thanks Joe _____________________________________________________

  19. H5mind says:

    Don’t forget, a handful of years ago when silver’s spot was around $9/oz, there was virtually no physical to be found. I suspect the same will be happening this time around. APMEX, for example, recently emailed all their customers asking to buy back their silver at spot (then near $48/oz). In spite of that, their inventory is still very low today. It’s only cheap if you can someone willing to sell it to you cheaply.

  20. Steve/NotLiverpool says:

    @badsey,

    It’s not quite that simple. If physical dropped to that price($15) it would become unobtainable, pretty much like when it was at $9.00 not all that long ago.

  21. Silver Nail says:

    Here in Russia major bank sells 1 oz silver coins for 63$, last week price was $59. These are invesment coins, they are exempt from VAT. Also lots of collectible 1oz silver coins with funny pictures on them. Prices from $109 to $181 per oz. Buying coins for a few years i have noticed major trend here : coins getting smaller, now many 925, not 999 purity and price going higher, fast. Even junk siver coins cannot be had below spot anymore (coin shops, flea markets etc). Generally population shows no interest for silver, unaware of prices etc, but banks are, for sure. Hold the line, SLA !