When I first talked about “Margin Call” and explained what it means to my girlfriend she understood that someone will call me say something like this: “Peeter, thank you for your money. You don’t have it anymore.”
The real truth is that no one calls you – just there is no asset anymore and no money also…
I have had two earlier posts on this:

• Silver is going up
• Background story about buying Silver

So what happened?
After writing “Background story about buying Silver” in some moment I changed to Silver future from SLV position. First I bought one Silver Mini-Future contract which was approximately for same quantity of Silver than I had in SLV before, so for 2500 ounces. Then it felt good and I thought – let’s take some more risk and I changed to one Silver Future contract, postion for 5000 ounces.

So bacically to make it simple, I put 20 000 USD to my investing account and did these earlier mentioned deals. Today just some moments ago I have 4054,69 USD on my account and no position in anything.

Couple of thing I didn’t take into account:

• Silver may go down in price. OK, I read a lot of articles about the price in future… and all those suggested rather higher prices… I even read a realistic article that the price should stay between 15 and 30 USD and hoped for 30 :-p
  As long as Silver stayed above 15 USD I had enough funds to cover this position in my account. Today it went under… at least I see SLV price now 14,44 USD.
• I didn’t take into account that the Exchange NYMEX will lover the Margin needed… I went in knowing that it is 8000 USD and I thought that when my position is worth less it gets sold automatically. They lowered the Margin needed to 5000 USD and as I found out now it got sold automatically when I had 4000 USD left in my account. Good that I didn’t had any other assets on that account
• I had no stop order on place… accually I even don’t know how to put this into place :-/

Now I can say this was a costly wake-up call. I better start learning more…

At this point I have the plan to add some funds to this account and buy a new position in Silver Futures when Silver price will go over 14-day moving average or 200-day moving average whichever comes first. So I will at least have some kind of other strategy than buy and pray (Just kidding!).

At this moment I’m looking this information at http://www.kitco.com/charts/techcharts_silver.html
So anyone of you knows where I could find real time chart on it, I would appreciate.

See the original post here:
I got a Margin Call on Silver Future position

Few days ago a wrote the story “Silver is going up “. But probably you are not so interested that somebody is getting richer, but more like how is somebody doing it… So I would like to share with you the background story what I had go trough to buy this silver…

First I got the idea…
Many times I heard Robert T. Kiyosaki talking about Silver… First time when I heard it, I was like ok… and did nothing. When I heard it again and again I got more interested about Silver… but I didn’t find ways to buy Silver here in Estonia… Finally when I visited New York in end of 2006 @ The Real Estate Wealth Expo (as volunteer for RichDad company) I met also Mike Maloney because he was with hes companion out at the fair. Normally they sell Silver & Gold through their web page, but as I live in Europe and they only deliver in US I convinced them to sell me some Silver right away. But I was there with my small bag (which I carried as hand baggage in air plain), so I couldn’t buy much anyway. Second problem which I had was that I didn’t had enough cash with me… so we made a deal that on the second day I will bring some cash and they bring me some Silver. Then I had to get the cash… For me it was obvious that I can go to ATM and take it with my bank card… but it was not so simple at all. In Estonia it’s possible to get from ATM pretty big amounts, but in US most of ATM only allowed to take 50 or 100 USD max. So I searched in Manhattan some bank offices where I could take bigger amounts at once… Finally using all my three bank cards (and three different ATM machines) I got the amount out what I needed… and I got my first Silver in the next Day

This part was more or less not so hard… but I wanted more… so I did some research here in Estonia and found two companies which could deliver Silver for me. BUT there were problems… they have to add VAT (18%) to the price. OK, I figured out that I could buy Silver to my company and get the VAT back from Tax Office. BUT then there was second, much bigger problem… they would sell me Silver but wouldn’t buy it back. The reason was that one of these companies sells Silver mostly as gifts and second as material for production companies and they have their own sources where they buy Silver and their clients would not accept Silver from anywhere else… (question of trust raised up).
And every time they suggested to my that I should rather buy Gold.

In some moment I heard about SLV (stock index). So made some research again… read about it’s background… who manages it… who controls it and etc. ..and finally also how could I buy it.
That sorted out I had to decide which entity I will use to make the deal. Taking account many thing I choose one. Now I had open an investing account for that company. I had to fill about three formulas… and I made a mistake there, so this had get corrected afterwards…

Finally I was ready to buy SLV.
But how to do that? I transfered money needed for this deal into brokerage account. As I had never bought any stocks from US market I didn’t know exactly how to fill the purchase order… so I called them. First I got the answer that I should still enter my order manually into their system at their web page… but after more questions this guy on the line says: ok, actually it’s possible to make purchase orders over the phone also… “Yes” I thought “let’s do it.” He wanted to know how much I want it… I said the amount in Estonian Kroons (as I had Estonian Kroons at my account) which I wanted to use for this deal… he was confused. After some thoughts he accepted that he should calculate for me this amount into dollars and then say how much SLV I get… but before doing the deal, the broker found out that it’s my only money at this account…

Stock broker tried to convince me that I should have well diversified portfolio.
So I had explain this guy that I’m sure what I want to do… and that no, I don’t want to come to their counseling before… and once again that YES I want this SLV (Silver stock index). After 15 minutes of this call I finally got what I wanted

Today I can say that you have to know yourself what you want, because the brokers try to mislead you all the time.

Source:
Background story about buying Silver

SEARCH ENGINE KEYWORD RESULTS :

• buy silver estonia
• a story about a silver daddy
• buy silver from estonia
• buying silver in estonia
• silver price estonia

I feel good…
Why?
Because I listened 2008 Predictions video – Part 4 of 4 in the beginning of this year at richdad.com.

Also I read often Mike Maloney’s web page GoldSilver.com

I also have bought some silver and one ounce of gold in 2006…
But the Best thing what I did was buying more silver @ 14th of January 2008…
Do you remember the story Why I sold my rent condo?

What it has to do with this story?
On 14th of January I put all this money into silver… and silver has gone up from that day approximately 18%.

Unfortunately in European Union its not good idea to buy silver as metal because of VAT which would be added and because of poor opportunities to sell it later… so I had to buy it as index stock (SLV is the symbol). But SLV follows the price of real silver quite good

I just received a Google Alert that pointed me to the Ron Paul for President site where they’ve posted part four of Robert’s 2008 prediction video. This clearly demonstrates the power of social networking.

Read the rest here:
Prediction Video #4 Posted on Ron Paul’s Site