When the tide comes in, all boats rise -- and when the tide goes out, all boats sink.
Dow down 300 points and demand destruction is affecting gold and silver prices.
Here's another reason gold/silver prices are down...BUT IT'S EFFECTS WILL BE TEMPORARY.
CME Hiked Cleared OTC London Gold Forward Margin By 40% Yesterday
Submitted by Tyler Durden on 09/09/2011 08:55 -0400
There is much talk of a gold margin hike this morning. For one thing this is not news: it happened early afternoon yesterday. Second, it impacts a relatively innocuous contract. But of course, in the footsteps of the Chairman, at this point it is not what one does, but what one promises to do. As such this move is seen as merely a telegraphing of what the CME will do to GC should gold spike over $1900. We say do it already, and make gold margin 100%. What will the CME do then when everyone moves to trade the contract in Asia, or is happy to trade with 100% cash collateral? ____________________________________________
Many investors are highly leveraged in the stock market and when the markets crash (like today), they are forced to sell their PAPER ASSETS (including silver and gold) to raise cash in order to meet margin calls.
Right now, physical gold and silver are the world's only safe investments.