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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.
I’d give up .4 Oz. But not much more. LOL
Any store of value is worthless unless one can exchange it for other goods. That makes safe delivery and reliable brokering critical, especially because reliable exchange in physical goods is so costly. In times of chaos, physical risk increases that cost.
Hence, the next precious metal may be lead.
“”””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 long-winded news article states the margin will be $25,000 on Dec 26th.
But what is the CURRENT MARGIN??????????????????????????
The price of physical has escaped control and will win.
According to this CME website the CURRENT SILVER MARGIN IS $22,000.
Thus, no big deal to raise the margin to $25,000
https://www.cmegroup.com/markets/metals/precious/silver.margins.html
It’s a bubble.
From $29 a year ago to $79 today?
Wow that’s not good at all.
Better buy tulip bulbs as well.
Good points. Getting spendable currency out of PMs is a pain and costly (the spread), but not impossible. For most of human history gold/silver were a direct exchange medium for goods. Now it requires an extra step or two.
According to this site-—
https://vblgoldfix.substack.com/p/how-the-silver-rally-might-end
CMX raised the SILVER MARGIN from $20,000 to $22,000 on DECEMBER 12, 2025 and the market totally shrugged it off!!!!!!
If you’re convinced the rise in silver is a transient bubble, you could easily buy ZSL, a tradeable ETF which shorts silver.
https://www.proshares.com/our-etfs/leveraged-and-inverse/zsl
Here is a link to historical CMX SILVER MARGINS
https://www.cmegroup.com/clearing/risk-management/files/SI-2020-to-present.pdf
Here is a summary of recent margin changes
Sep 26 2025 from 15,000 to 16,000
Unknown date changes between SEP 2025 AND DEC 2025 from 16,000 to 20,000
Dec 12 2025 from 20,000 to 22,000
Dec 26 2025 from 22,000 to 25,000
It is pretty obvious that the increase margin from Sep 26 to now has had absolutely no impact on the soaring silver prices.
amen to that. can’t come soon enough. I’m ready to see it in the stock market
And here is more info on CME raising silver margins—
https://www.youtube.com/watch?v=rzKlkDpd1DY
In this video I break down:
Why the CME raised silver margins 3 times in 90 days (Sept 26, Oct 10, Dec 11)
December 19, 2025. Silver just hit $67/oz—an all-time high. The CME raised margins 10% on December 11th to kill the rally. It didn’t work. Price went UP. 60% of COMEX registered inventory—47.6 million ounces—was claimed in just 4 days. The vaults are emptying. The paper market is breaking. And the exchange just admitted they’ve lost control.
In this video I break down:
Why the CME raised silver margins 3 times in 90 days (Sept 26, Oct 10, Dec 11)
The 2011 playbook: 5 margin hikes in 8 days, 84% total increase, silver crashed from $50 to $35
Why that playbook is failing in 2025—price rallied AFTER the December hike
COMEX registered inventory collapse: 79M oz to 31M oz in 4 trading days
The difference between registered vs eligible inventory (and why it matters)
JP Morgan’s alleged flip: from 200M oz short to 750M oz LONG
Why JP Morgan moved their precious metals desk from New York to Singapore
The $920 million CFTC spoofing fine against JP Morgan in 2020
London lease rates spiking to 11%—normal is under 1%
Industrial demand breakdown: solar (200M oz), EVs (90M oz), AI data centers (50M oz projected)
Total industrial demand: 665M oz vs mine supply of 800M oz
The 5-year cumulative deficit: 820 million ounces
Physical premiums hitting $4-6 over spot in the US, $8+ in India
Why paper silver (SLV, futures) carries counterparty risk most investors don’t understand
Three scenarios: controlled rally to $90, accelerated squeeze to $130, or full COMEX breakdown
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.
Actually, the silver market is very small.
Hunt brothers went bankrupt because the rules were changed after the fact.
Beginning on January 1st, China will implement new export controls requiring government licenses for all silver exports.
As a result, Shanghai silver prices are up to $85oz, marking a ~$5/oz premium to spot prices in the US.
all futures exchanges always raise margin during periods of high volatility ... always ...
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Hence, the next precious metal may be lead.
That said, a currency crisis, bank crisis, mortgage crisis, credit crisis....we have seen them all at one time or another and made it through. That doesn’t mean you shouldn’t plan, prep for a couple months of financial, supply chain disruptions,etc....but Mad Max is not coming to America.
Mad Max may already be here in the person of Chinese, Islamic, and narco-terrorists. It doesn't take that much to put a modern city into chaos. Just cut off the electricity and we'll lose gas, water, and sewage treatment. An EMP would do it too.
At that point, bridges over interstate highways and rail lines would effect a siege but for aircraft. We don't have the lift capacity to keep any more than a few cities going, particularly when potable water is at issue.
Bkmk
it’s a minimum of $25k and it’s meant to harm the small investor to protect the crooks. It won’t work but that’s their plan.
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