Last week my portfolio lost around one-fourth of its value. Am I worried? Hell no, I’m mad! This is the second “drive by shooting” that gold and silver have had to endure in the last four and a half months. Let me assure you, this is nothing more than JPMorgan and their pals at CME forcing a sell-off in paper gold and silver contracts.
CME announced a huge increase in gold (21%) and silver (16%) margins AFTER the market closed on Friday, effective after the market close today (Monday). This will force more liquidation and push the prices even lower on Monday. Increase in margin is supposed to reduce market volatility. Of course, the bullion banks (you know who) know of the pending increases BEFORE they are announced and it encourages them to short the market with impunity. And when it happens during a rapidly falling market, like what we witnessed on Wednesday, Thursday and Friday, it added to the beating that gold and silver took last week.
