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Posts tagged ‘New York Mercantile Exchange’

Gold, Silver and Fraudulent Investor Traps

By: Jim_Willie_CB

The feverish  positive sentiment has left the Gold & Silver market in the last two  months. Raised margin requirements during falling prices alongside naked short  ambushes in the COMEX, coupled with permitted asset damage from debt  monetization conducted more in secrecy will always help to dampen enthusiasm.  But with the billboard message on the European subway walls and boulevards and  news magazines stating the obvious, that the European debt crisis has no  solution, that Germany has no more checks to write in funding the bailouts,  that Greece is set to default, that leaders in political spheres are opposed by  bank leaders where the final decisions are made, the GOLD & SILVER PRICES  ARE SET TO ZOOM. Only the dummies sold in the last round of ambushes and  interrupted recoveries. The precious metals have suddenly awakened.

The old defended  range for the two metals was easily overrun as a splash of reality hit the  market faces. A mad scramble is likely from here onto the end of year, as  people realize that hyper-inflation is the solution on any massive bailout with  clearer gigantic needs, and as people realize that a broad string of bank  failures will drive gigantic flows into safer places since sovereign bonds will  go from sacred to toxic. The powerful decline in September, down $200 in gold  and down $10 in silver suddenly have presented a ripe easy recovery without  resistance. A powerful reversal is near and coming. Many investors will rush  back in, paying higher prices than where they unwisely sold. Many investors  will rush in, seeing banks and government bonds as ugly options

full article at source:http://www.marketoracle.co.uk/Article31185.html

Gold : is your only man Gerald Celente

The U.S. jobs data, released on Friday, showed that the U.S. economy had added no jobs at all in August, a hugely disappointing figure that renewed worries that the economy may be heading for a recession.

Wall Street reacted with a decline of 2.2 percent on the Dow Jones industrial average and a 2.5 percent fall on the Standard & Poor’s 500. The benchmark indexes in several leading European markets slumped more than 3 percent Friday.

The stock markets in Asia followed suit on Monday, with falls of more than 2 percent in many leading indexes.

Flash crash for silver futures after Comex margin change

Posted on 02 May 2011 from our friends over at wealthbuilder.ie

 

Silver futures yesterday suffered their biggest plunge since October 2008 during the global financial crisis with metal due for delivery in July falling to $42.20 an ounce.

The ‘Flash Crash’ followed a rule change by the Chicago Mercantile Exchange that increased silver margins by 13 per cent with effect from the close of business on Friday. Raising margin requirements is a classic way to try to cool a speculative market.

However, silver for immediate delivery quickly recovered to $45, albeit sharply off the highs of almost $50 reached last week. Gold lost a little of its recent shine dropping just below $1,550 an ounce.

Is this the start of a summer swoon for precious metals? If so it has been widely anticipated and would confirm to historic patterns of summer weakness, generally followed by a strong autumn rally.

Comex manipulation

The Comex rule change would be compounded by a general fall in global stock markets which are looking very overvalued after a long rally and a poor actual economic recovery to date. Gold and silver dropped alongside financial markets in the global financial crisis of 2008 but have not always headed down in periods of financial district.

That might make yesterday’s price move a ‘Flash Crash’ like the one a year ago that some saw as the start of a stock market downturn, while the market rally merely paused and then went on up and up.

Silver might similarly confound the skeptics and chart readers who focus too much on technical factors and do not consider the fundamental changes taking place in global currency markets where precious metals are the only money in demand.

The ArabianMoney newsletter published today contains novel ideas on how to make a fortune in silver without speculating on the Comex futures margin.

New Volume Records in Silver Futures and Silver Options Open Interest

CME Group Announces New Volume Records in Silver Futures and Silver Options Open Interest

CHICAGO, April 26, 2011 /PRNewswire/ — CME Group, the world’s leading and most diverse derivatives marketplace, today announced it had reached record volume yesterday in its COMEX Silver futures, as well as in open interest of its Silver options.

http://www.freestockcharts.com/?gclid=CL-16pv6wagCFUdP4QoduXq1pw

charts from http://www.freestockcharts.com/

Yesterday, trading of Silver futures reached 319,204 contracts, surpassing the prior record of 201,216 contracts set on November 9, 2010. At the same time, open interest in Silver options reached a new record of 240,344 contracts. The prior record of 235,992 contracts was set on April 21, 2011.

Silver futures have demonstrated rapid growth during the month of April. Month-to-date average daily volume (ADV) for Silver futures has increased 218 percent from this point last year. During 2011 year-to-date, ADV for Silver futures have grown 110 percent versus the same period last year.

These contracts are listed with, and subject to, the rules and regulations of COMEX.

As the world’s leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk.  CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate.  CME Group brings buyers and sellers together through its CME Globex® electronic trading platform and its trading facilities in New York and Chicago.  CME Group also operates CME Clearing, one of the world’s leading central counterparty clearing providers, which offers clearing and settlement services for exchange-traded contracts, as well as for over-the-counter derivatives transactions through CME ClearPort®. These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk in both listed and over-the-counter derivatives markets.

SOURCE CME Group

 

Comment: 

I wonder if we are going to see a major correction in this particular commodity soon before it goes on toward the 100 mark??

Stocks drop on Libya, surprise Chinese deficit

LONDON -The battle for control of Libya and weaker than expected Chinese economic data weighed on markets Thursday while a debt rating downgrade of Spain hit the euro, a day ahead of a crucial meeting of EU leaders.

Sentiment over the past few weeks has been driven by developments in North Africa, most recently in Libya, which in normal times produces a little under 2 percent of the world’s global oil needs.

Though the regime of longtime leader Moammar Gadhafi appears to be recapturing ground lost to rebels, investors remain cautious of staking out fresh positions given worries over oil supplies and how the crisis in the Arab world will spread.

The main impact has been in oil markets, sending prices up to their highest levels for around two and a half years. By early afternoon London time, the benchmark oil contract on the New York Mercantile Exchange was down 98 cents at $103.40 a barrel, while Brent crude in London fell $1.36 to $114.58.

Both figures are somewhat lower than where they were on Monday but remain elevated and a threat to global growth prospects. That fear has hung over stock markets recently — equities are a leading indicator of perceptions for economic expansion.

It’s clear that rising oil prices are having an impact in China, which has been one of the main pillars behind the global economy over the past few years. Many analysts argue that buoyant Chinese economic growth effectively prevented the economic recession from becoming a depression.

The world’s second biggest economy, however, reported a surprise trade deficit in February as surging prices for oil and other commodities pushed up its import bill.

“Confidence in equity markets is being shaken once again as China’s surprise posting of a trade deficit combined with the ongoing geopolitical uncertainty — something that’s still focused very much on Libya — is pushing traders very much into a bearish mindset,” said Harley Salt, head of sales trading at IG Markets.

In Europe, the FTSE 100 index of leading British shares was down 1.1 percent at 5,874 while Germany’s DAX fell 0.7 percent to 7,081. The CAC-40 in Paris was 0.6 percent lower at 3,969.

Wall Street was poised for a retreat at the open — Dow futures were down 42 points at 12,132 while the broader Standard & Poor’s 500 futures fell 6.4 points to 1,309.

Hardly helping matters was the news that Moody’s has downgraded its credit rating on Spain by one notch to Aa2, citing worries over the cost of the banking sector’s restructuring, the government’s ability to achieve its borrowing reduction targets and grim economic growth prospects.

The euro retreated in the wake of the downgrade, trading 0.5 percent lower on the day at $1.3832.

The downgrade came amid signs that Europe’s debt crisis is flaring up again ahead of the March 24-25 summit of EU leaders in Brussels. Portugal’s cost to borrow 10-year bonds stands near a euro-era record.

Though a “comprehensive solution” to the debt crisis has been trumpeted, there are growing fears that the 17 countries that use the euro will not agree a revamped bailout mechanism, set new rules on budget deficits and a system of support funds to flow from richer countries in the single currency bloc to the poorest.

“Eurozone issues have returned to the fore as we approach a period of critical decisions on the funding facilities and bank stress tests,” said Richard Cochinos, a foreign exchange strategist at Bank of America Merrill Lynch.

News that the Bank of England kept its main interest rate unchanged at the record low of 0.5 percent was not a huge surprise.

However, the bank is expected to start raising borrowing costs in the next couple of months in response to inflation running at double the 2 percent target.

Earlier in Asia, Japan’s Nikkei 225 stock average ended 1.4 percent lower at 10,434.38 after the government said the economy shrank 1.3 percent in the fourth quarter.

Chinese shares fell too, with the Shanghai Composite Index closing down 1.5 percent to close at 2,957.14 while the Shenzhen Composite Index of China’s smaller, second exchange fell 0.7 percent to 1,302.65.

Hong Kong’s Hang Seng index retreated 0.8 percent to 23,614.89.

Kelvin Chan in Hong Kong contributed to this report.

See full article from DailyFinance: http://srph.it/g2Ck6m

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