"groundhog day for silver - again", page-16

What is unusual about this latest margin hike/hikes is that they have come at a time when SILVER is falling 10% - 15%.

This pretty much assures any leveraged player who bought at $43 and up will likely bail/sell. Who would hold when asked to ante up in a falling market?

Let's put it another way,

I sell you a goat for $100.
I ask for $10 down/margin.
No worries, goat prices go to $150.
I now ask for an additional $5 to bring the 10% margin into line.
No worries. It hurts a bit trying to come up with the additional capitol, but you manage. (sold Telstra shares)

Now, poor old Trader X comes in and wants some goat.
A margin hike has occurred so he may have to ante up 12%.
Goats are now $150 so trader X has to come up with $18.

Well he does, BUT, all of a sudden the goat overheats (too much cabbage) and loses 20% of its bodyweight to $120.

For an $18 outlay trader X is down $3.60.
Not so bad, hang in there!!!

Now here is the issue, another margin hike in a falling market, Trader X now has to pay an increased margin, say 18%, well he is already underwater to the tune of $3.60

Would you hang around????