Shanghai Gold Exchange Hikes Gold Margins to 13% | SilverDoctors.com
And so it begins.
Those who followed precious metals in 2011 will recall this game plan all too well:
Smash gold and silver prices using unprecedented amounts of naked paper shorts, then announce massive margin hikes (due to increased volatility) to force capitulation among any longs holding out.
After large take-downs in gold and silver in thin holiday trading last week, the Shanghai Gold Exchange announced today it will raise gold margins to 13% effective Dec 28th.
Given the nonsense that happens regularly in the precious metals market, this does not surprise me.
ReplyDeleteMy view - if margin hikes become widespread we may see gold drop as low as $1525 before rallying hard.