New All time High in Gold, Silver breaks $38, Expected down move for 1:30pm

This is another all time high day for gold, and silver had a nice move to above $38 today.   So why is 1:30pm so special?  It is the time the official price for silver / gold on the Comex is recorded.  Therefore, as everyone should know already the massive short positions in silver do not want to get margin called which would result on a high price Comex loss.  Leading to a short covering rally or even a short squeeze.  So there is always extra effort on days like today where silver breaks to recent highs to put a lid on prices coming into 1:30.  After this I would expect more stabilized prices.  This has happened in the past and it will happen again, just be aware of the games that players use to control prices of commodities.

UPDATE: Well before I even saw this article from Zerohedge, I predicted that something was up in the silver market.  Like I mentioned previously, 1:30pm is when the Comex records the "official" price.  Well I expected it was just the typical players pushing the market down to save their own skin, well it appears they got help.

And Like Clockwork, CME Hikes Silver Margins Halting Surge - ZeroHedge

The CME announcement can be found here.

The summery of the margin requirement changes are below.



 "As per the normal review of market volatility to ensure adequate collateral coverage, the Chicago Mercantile Exchange Inc., Clearing House Risk Management staff approved the performance bond requirements for the following products listed below."

 This is the strange part, they always claim that it is due to volatility in the silver market however it just goes up.  That isn't volatile.  Any sharp drops are generally caused by these type of actions which allow larger margin requirements.  What this effectively does is postpone the enviable short squeeze in the silver market and allow more shorts to hang in there just a bit longer.  This is the second time this has occurred in this rally of silver.  November 10th CME also hiked its margin requirement. Which resulted in a drop from ~26.50 to ~24.50 before continuing its relentless rally up.  So another correction could be in order but again it will be a buying opportunity as the entire reason for the hike is to allow more time for shorts to cover which means more buying pressure.