MARGIN TRADING POLICYRecently, a shareholder asked an interesting question, “How can the value of the IMG share price fluctuate around the $3.00 CDN , when they have nearly 1B dollars sitting in the bank and the gold price is trading in the $1,800 USD range and the cash and liquidity is nearly equal to the market capitalization”.
I have a plausible theory. I think there’s a real connection between the large bullion banks and the fluctuation under and over the $3.00 CDN value of the IMG shares. These banks have the ways and means to trade 100,000 block shares in order to stabilize the IMG share price in order to maintain a range in the area of $3.00CDN. I did some further digging into their margin trading policy of the TD Bank and discovered some interesting facts. I was under the impression that the purpose of a margin account was to help shareholders utilize 50% of their invested value to enable them to purchase shares in the margin account. Throughout the month of August, the share price fluctuated under and over the $3.00 CND price. Each time the share price drops below $3.00 CDN it triggers a margin call without notice and the shareholder is forced to sell. In my opinion, I find that this is an unfair trading practice and it’s a beautiful scheme being carried out by the big bullion banks. I don’t think it’s a coincidence that the share price fluctuates around the $3.00 CDN value.