Monday, September 26, 2011

Shanghai Raises Silver Margins 20%

Friday night, after silver's epic 17% single day decline, I discussed some of what transpired in What Happened To Silver?  Most of the discussion focused around the margin hikes at the CME.

This morning in Asian trading with silver already reeling, the Shangai gold exchange announced a 20% margin hike for silver.

Silver was again crushed again, falling another 15% in overnight trading.

The beat down is a dream scenario for investors who are not leveraged in the silver market and can enter the market again today with available cash to purchase physical metal.

This is like finding a pair of running shoes you would love to own but thought were too expensive, only to find out that you can now buy them on massive discount at a small shop down the road because the owner mismanaged his finances and now has to liquidate all his inventory.

Hope for more liquidations and more of the strong assets to go on sale.