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Here Are The Real Reasons Why Gold And Silver Plunged Mike "Mish" Shedlock, Global Economic Trend Analysis Sep. 24, 2011, 7:28 AM Many people have asked me to comment on the plunge in gold and silver. First let's take a look at the wrong answer: Case Closed: CME Hikes Gold, Silver, Copper Margins And there you have it: CME just hiked gold margins by 21%, silver by 16% and copper by 18%. Mystery solved. Sorry Tyler, wrong answer. Four Reasons for Metals Plunge * Fed did far less than expected * Mutual fund redemptions * Margin calls at hedge funds...

I suggested in my last column that using the monetary aggregates which have increased the most in recent years would point towards a gold price in the mid $1700s per ounce. Using other money supply measures which have not expanded as much would point towards gold prices around $1400 per ounce. On the other hand, it seems likely that money supply measures will, in fact, increase going forward. After all, the general mood in the country is malaise, and the head of the central bank is a Keynesian. With unemployment rates north of 9% and GDP growth rates south of...