Wizard of Id

Well the market continues to be a wild ride. I'm sure most of you would like an explanation to what has happened in the gold and silver market/stocks. I would love one as well. The Chinese Exchange and the CME once again raised margin requirements on gold and silver trading. They did this right as the stock markets were tanking. This caused a good deal of funds to liquidate their winning positions, gold and silver, to cover the losses in the stock market. The constant manipulation by the exchanges is maddening. Don't worry, everytime they have tried this, it has only caused a short term drop. I believe we will see gold and silver rebound shortly. Let's start today off with a cartoon.

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Since I was on the gold subject, has anyone ever seen a gold vending machine?  Pretty cool...

China 'launches gold vending machine'

China, already the world's second largest bullion consumer, has installed the country's first gold vending machine in a busy shopping district in Beijing, state media said on Sunday.
Shoppers in the popular Wangfujing Street can insert cash or use a bank card to withdraw gold bars or coins of various weights based on market prices, the People's Daily said on its website.

Each withdrawal is capped at 2.5 kilograms (5.5 pounds) or one million yuan (about $156,500) worth of gold, the report said.

Gold vending machines already exist in Britain, the United States, the Middle East and Europe.

The machine was launched Saturday by the Beijing Agricultural Commercial Bank and a gold trading company, the report said.

They plan to install an unspecified number of machines in secure locations such as gold shops and upmarket private clubs.

Gold is often used as a hedge against inflation and the machines could prove popular among Chinese consumers looking for a convenient way to safeguard their cash amid rising prices.

Chinese consumer demand for gold soared 27 percent year-on-year to 579.5 tonnes in 2010, according to the World Gold Council.

India, the world's top consumer, saw a 66 percent increase to 963.1 tonnes.

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Here is an article about the margin hikes.

Shanghai Gold Exchange Hikes Silver Margin By 20%

Wondering what caused the dramatic plunge in gold and silver earlier? Wonder no more: the CME's counterpart in China, the Shanghai Gold Exchange, decided to follow through with an identical, if more substantial, action to that undertaken by the CME on Friday, and announced an increase in the Silver T+D contract margin from 15% to 18%, a 20% bump; the SGE also noted an increase in the price range limit from 12% to 15%, which will be promptly fulfilled, as margin hikes traditionally tend to lead to a sudden spike in vol, contrary to well-meaning expectations. There was a second announcement, slightly more cryptic one, noting that if volatility were to persist, the SGE would outright halt silver trading (although the Google Translation of this previously unseen form announcement is a little sketchy). Expect to see more exchange intervention in precious metals today. Regardless, those who bought silver 15% lower a whopping, oh, two hours ago, courtesy of the out and out sheer panic, are quite grateful to the Chinese.

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This is just funny...

Patrons mistake ice cream shop mascot for KKK robes

Once and for all, people, it's an ice cream cone.

The owners of Ice Cream Family Corner and Sandwiches at the busy intersection of South Pine Avenue and Southwest 17th Street say their two-month-old business is getting creamed because passers-by have mistaken their white-hooded ice cream cone mascot for a KKK protester.

Co-owner Jose Cantres says rumors are swirling on Facebook about the exact nature of the little vanilla cone, and employees heard through word of mouth that potential customers have steered clear of the shop to avoid the character.

Liza Diaz, who manages the store for Cantres and co-owner Jesus Diaz, said an employee at the bank where she does business told her a co-worker was so frightened by the white dollop patrolling the street corner that she called her husband crying and refused to drive through the intersection.

"One (customer) told me, ‘I had to think twice before coming in here because I thought it was KKK,' " Diaz said.

Interestingly, Diaz, who is from Puerto Rico, had never heard of the KKK before this controversy. She can't even quite get her tongue around the name, referring to the white supremacist group as the "Ku Ku Klan" without a hint of irony or sarcasm.

Close up, the costume looks nothing like the white-hooded Klan garb that evokes such strong emotions. Its fluffy white top, flecked with colored sprinkles, curls slightly at its peak, and it sits atop a brown waffle cone.