Lying With Percentages
Today’s selloff seems to have been a knee-jerk response to the claimed 30 margin on CME silver contacts but that was not a 30% margin rate increase, it was a 30% cash amount increase, from $5000 to $6500. The trigger was the three day rise of silver from $26 to $29 so the actual rate change was as computed below.
At $26.00, 5000 oz. of silver is $13000 of which $5000 is 38.5%. At $29.00, 5000 oz. of silver is $14500 of which $6500 is 44.5% therefore the rate increase was, at that moment, only 6%.
A truly factual report would have stated only that the dollar amount of margin had been raised. The rate, under any particular margin amount fluctuates with the price.
