Bloomberg
By Debarati Roy and Pham-Duy Nguyen - Aug 24, 2011 6:32 PM ET
CME Group Inc. raised the margin requirements on gold trading at its Comex unit for the second time this month, after prices surged to a record above $1,900 an ounce and then plunged today by the most since March 2008.
The minimum cash deposit for borrowing from brokers to trade gold futures will rise 27 percent to $9,450 per 100-ounce contract in the speculative Tier 1 category at the close of trading tomorrow, Chicago-based CME said in a statement. On Aug. 11, the increase by the exchange was 22 percent to $7,425. The cost of one contract after today’s close was $175,730. The maintenance margin will rise to $7,000 from $5,500. LINK...
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Why bother with margin in this volatility? Just buy the physical metal fully paid for and aviod the stress. Eventually if they keep raising margins we will have a strictly physical market. BK
