Inflationary Guerilla Tactics Resume As Comex, Nymex Hike Margins On Gold, Silver, Cracks, Spreads And Other Products

Here's my last offering of the day...and it's a very important read. It was a zerohedge.com posting that Washington state reader S.A. sent me early yesterday evening that's headlined "Inflationary Guerilla Tactics Resume As Comex, Nymex Hike Margins On Gold, Silver, Cracks, Spreads And Other Products". Normally, margins are increased as prices rise...but not this time...and this is the second time that margin prices have been increased as the underlying asset has fallen steeply in value.

Tyler Durden has this to say about it..."Wonder why the smart money was rushing headlong out of gold and silver over the past few days, and especially today in the AM session? Here's your answer: in tried and true fashion the Comex just hiked margins in gold, and silver by about 6%, and threw in a few other commodities to mask things up."

As the headline reads, these are truly 'guerilla tactics' that are being used to force the technical longs to puke up their long positions. Needless to say, this was done at the behest of the bullion banks in cahoots with their 'friends' at the Comex. And, as I said before, 'da boyz' are really serious about getting out of their short positions this time...especially in silver...and they are leaving no stone unturned in their quest to pick up every speculative long Comex contract that they can find.

I consider this a must read...and the link is here.

But, in an e-mail from silver analyst Ted Butler in the wee hours of this morning, Ted had this to say about yesterday's margin increases..."I don't think it's as critical this time, due to the damage already done...and the relatively small increase."