[Nachum]

And here is the reason why Gold dropped by $80 yesterday. It was an attempt by the market to control the cost so the suckers would get scared and the big players could buy more at an artificially lower price.

Wonder what their profit will be when it bounces back? Playing all the suckers...

[blam]

GOLD FALLS TO EARTH, STOCKS RALLY AGAIN: Here's What You Need To Know

[Zhang Fei]

$9,450 initial margin to control $190,000 worth (100 ounces) of gold. That's 20 to 1 leverage, about what it is in other commodities. Funny thing about this sleazebag Tyler Durden is that he never talks about initial margin reductions, which occur when gold prices and price volatility fall:

Exchange operator CME Group Inc. (CME) cut the amount of collateral required to trade gold futures in a move that may invite greater speculation in gold. As of close of business Monday, speculators in the benchmark gold contract must put up an initial margin of $6,075 per contract, down from $6,751. To keep the contract overnight, these traders must maintain $4,500 of the initial margin, down from $5,001.

CME also lowered the initial and maintenance margin requirements for hedgers and exchange members, to $4,500 from $5,001 previously.

When price movement becomes less volatile, margins typically go down because the risk of the position also decreases. This is the case with the decrease in gold margin requirements yesterday, CME said. The lower margins therefore, are a boon for gold speculators, who can buy or sell more contracts with less cash starting next week.

In truth, the exchange raises margin requirements to guard against losses, because it has to make up the difference when speculators can't cover their losses and go bust. Margin requirements go up (and down) for the same reason that home purchase down payments go up (and down) when home prices go up (and down). Durden's profound dishonesty is one of the reasons his website is pretty worthless as a source of investment information.

[org.whodat]

Anyone dealing in gold futures instead of the real stuff is an idiot.

[icanhasbailout]

It probably will bounce back and in short order, but gold is such a treacherous market right now I wouldn’t touch it.

Actually a lot of the market is like that what with all the game-playing and insider trading going on. Joe Sixpack plays in this casino’s rigged games at his peril.

[Mariner]

"Playing all the suckers... "

The only suckers are the one's who are buying this bubble.

[SuperLuminal]

Don't care what happens (wrt price) as long as the price-per-oz doesn't fall to around $260-$280.

OTOH, confiscation???