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Posted on 12/27/2025 7:34:04 AM PST by delta7
CME Raises Silver Margins to $25K as Market Manipulation Intensifies
CME raises silver margins to $25K amid a price surge, reviving manipulation concerns as higher costs threaten trader liquidations.
On December 26, 2025, the CME Group announced an increase in margin requirements for silver futures. Starting December 29, 2025, the initial margin for March 2026 silver contracts will rise to $25,000.
This move comes amid rising silver prices and growing concern about market manipulation. The CME’s decision is seen as another attempt to control silver’s price during a period of increased demand.
The Impact of the Margin Hike on Silver Traders
The recent margin increase raises the cost for traders holding large positions in silver futures. By raising margins, the CME aims to reduce speculation in the silver market.
Many traders, especially those with smaller positions, could face forced liquidation if they do not have enough capital.
The new $25,000 margin requirement is particularly concerning for those betting on rising silver prices.
These traders now need more capital to hold onto their positions. If the price does not rise as expected, they could be forced to sell at a loss, addingdownward pressureto the price.
Traders and investors in silver are watching closely, as margin hikes have historically led to significant price corrections. The CME’s actions are seen as a way to slow down the upward momentum in silver prices, which some believe is getting out of hand.
Silver Market Manipulation: The History of CME Interventions
Historically, the CME has implemented margin hikes when silver prices rise rapidly, such as in the 1980 Hunt Brothers episode and the 2011 silver squeeze. In both cases, margin hikes were used as a tool to push prices lower by forcing traders to liquidate positions.
In 1980, the Hunt Brothers’ attempt to corner the silver market led to the CME’s introduction of “Silver Rule 7,” which raised margin requirements and caused silver prices to fall sharply from near $50 to $10 within two months.
» 🚨 THE CME GROUP JUST PULLED THE RUG ON #SILVER 🚨 If you watched the price action today, this is a MUST read.Earlier today, December 26, 2025, the CME Group (COMEX) dropped a bombshell: Advisory #25-393. Effective Monday, December 29, they are hiking silver margin… https://t.co/5KGItxThdgpic.twitter.com/ptUGCqahuc — Terel Miles – Freedom Stocks (@FreedomStocks) December 26, 2025
Similarly, during the 2011 silver price surge, the CME raised margins five times within nine days. This caused a 30% drop in silver prices, as traders were forced to sell off their holdings to meet the higher margin requirements.
The repeated use of margin hikes in response to rising silver prices has led many to question the CME’s role in controlling silver prices and whether it is acting in the interest of the broader market or a select few.
The recent margin increase in December 2025 has fueled similar concerns, with many arguing that it is another example of the CME trying to control silver’s price during a period of increased demand for physical silver.
Critics argue that this is a form of market manipulation designed to benefit short positions while stifling price discovery.
The Disconnect Between COMEX and Physical Silver Markets
Despite the CME’s margin hike, the physical silver market continues to show strong demand. The price of silver on the Shanghai market has remained significantly higher than COMEX prices, signaling a growing gap.
This discrepancy highlights the shortage of physical silver available in the market.
The price difference between the two markets is a sign of increased demand for physical silver, particularly in Asia. Large buyers in China have been taking delivery of silver, further draining the supply available on COMEX.
As a result, the arbitrage between the physical and paper silver markets is increasingly out of balance.
The CME’s actions, such as raising margins, have little effect on the actual availability of physical silver. The real concern for traders and investors is the increasing shortage of the metal, which will likely continue to putupward pressureon prices.
As demand for physical silver remains strong, the gap between COMEX prices and physical prices could widen even further.
The liquidity vacuum created by this situation suggests that the silver market is in a highly volatile phase.
Traders and investors must be prepared for potential price swings as the market adjusts to these changing dynamics. The ongoing disconnect between paper silver and physical silver could lead to more instability in the coming months.
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Industrial users dependent on Silver must keep buying, and will no matter what it cost.
.........Monday may be the day to back up the truck.....however, if the margin increases do NOT tamp down the price, the sky is then the limit.
You have to be really stupid to try to manipulate the silver market. The market is huge. Bunker Hunt went bankrupt because trying to manipulate it.
“ the sky is then the limit.”
That phrase is said in every bubble
Good love. Keep raising those margins.
Drive out those buying with credit !
Needs to be a ‘cash only’ market !
“ the sky is then the limit.”
That phrase is said in every bubble
I doubt the margin hikes work this time. January 1st is contract due day on COMEX. You have to say if you want physical delivery or not. We are in a flight to equity situation right now. Everyone wants physical possession.
COMEX is going to likely be in a world of hurt come January 1st.
I am not involved in trading, but are these the same traders that tried twice to take crude oil to $200/barrel?
As I understand it this applies to paper silver which you really shouldn’t be in. This does not apply to physical silver which is the only thing to own. This is the CME trying to protect the big shorters from getting absolutely slaughtered that are shorting paper silver. They have no physical silver to back up their paper
A lot of this is cause by China buying up all the silver they can so I don’t think CME is going to be able to stop it. Its about time!
Maybe the Shorts will take it in the shorts.
Absolutely, Brilliant.
Except, today it's not 3 brothers responsible for yesterday's 10% + rise in silver, but whole nations, like China and India and BRICS. And, it won't be China/India/Brics that goes bankrupt, but the Petro reserve currency in place since Bretton Woods, the US Dollar.
Folks, there are remarkable ways to make the US debt of $38T irrelevant, and you (and I) are witnessing that historic shift in realtime.
And, many Brilliant people cannot see it, right in front of their two eyes.
I have a garden of Tulip bulbs ready for spring,
Bfl
“This is the CME trying to protect the big shorters from getting absolutely slaughtered”
A slaughtering they richly deserve.
If silver is in a temporary bubble, then so are gold, platinum, palladium and copper. All precious metals have been moving in the same direction of late.
The reason for this is not a short-term trading anomaly, but the decades long erosion of all currencies, made inevitable by the continued and increasing deficit spending. I expect this trend to keep on in the same direction.
If the market turns south….its gonna roll down the hill fast and hard.
But I don’t think its going south any time soon. We will see $100 before we see $50.
Actually, the silver market is pretty small. That’s why the Hunts tried to corner it.
I imagine it’s about to get “bigger.”
Silver is generally a by product from other sources. It takes a while to ramp up production because the primary mineral is usually copper or gold.
It’s gonna be fun to watch.
Yep, if the above-ground silver was mass distributed across the planet, each and every human being winds up with 0.4 ounces.
And, given that nations, big banks, central banks, EV/solar-panel/defense-contractors/silver-consumers have tons and tons and tons of silver for their ongoing concerns, each human would get a LOT less than 0.4 oz.
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