Friday, August 26, 2011

Gold Margin Raised 27% on COMEX


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...
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