Would somebody mind explaining this? It kind of went over my head. Silver just went down.
When you want to take down a market, you make it harder for the buyers. They just raised the margins on futures contracts. That means it costs more to buy a contract. This is the fourth time in the last week they have raised the price of doing business, so yes, silver is going down. They have to protect JP Morgue who was about to take a big hit, due to the rising price of silver.
And they need it to stay down, which is why they continued hiking the margin. JP Morgan and three other banks are being seriously hurt by the rise in silver, and need to engineer a correction. However, the silver fundamentals are strong, and they are on the wrong side of a bull market. They need to get out of a lot of short contracts, and they need time. The summmer months are typically slow for silver. If they can drive down the price into May, and then survive the summer, they can use the time to buy up their short contracts. If the price pops right back up, they are going to lose a lot of money.
Just try to get ahold of some.
IMHO, they’re manipulating the market down to provide a easier exit for those banks who hold massive short positions.