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.
far from a bubble. silver has been suppressed for years. It is STILL very undervalued. Just wait....
LOL
That’s because the margin pertains to paper silver but physical silver is untethered from paper. You’ll see the price of physical soar and the paper holders are scrambling to find physical to fulfill the contracts they have.
It’s not good for the paper holders
No ... It’s meant to protect the exchange during abnormal price swings ... All futures exchanges do it when their risk elevates ...
the ‘exchange’ doesn’t hold paper or physical silver.
interesting take from presbyterian reporter
“””No ... It’s meant to protect the exchange during abnormal price swings ... All futures exchanges do it when their risk elevates ...”””
Thanks for jumping in. I was hoping to inform the FR folks that this Dec 29th $25,000 margin on silver futures was just the last of three recent increases that have not stopped the soaring silver prices.
Now if Comex raises margins to $100,000 per contract that might have an impact.
I just saw a video on X about silver prices. It explains how China has been buying up huge reserves of commodities including silver and why silver mining has not kept pace.
In a nutshell precious metals are used in combination with a basket of currencies for international settlements. This will replace the dollar as a reserve.
The places that mine the most silver (Mexico, Peru) have political climates not conducive to investment (because of cartels).
The problem the US has is the fact that use of the dollar for international settlements has been declining for years. The loss of the dollars value can be seen in inflation. One could expect inflation to continue for quite some time. Unfortunately our leaders and voters have been too reckless for too long.
I never said they did ...
“”””the ‘exchange’ doesn’t hold paper or physical silver.””””
I am not sure I know what you mean by that statement.
But Comex, the exchange where metals futures are traded, does hold an inventory of gold and silver to deliver to anybody demanding delivery at the expiration of their 5000 oz silver futures contract.
then CME is doing it to protect themselves. The bottom line is, those that are short are in trouble and the powers that be are doing whatever they can to stem the flow of blood
There are protecting themselves ... From big moves in either direction ... Up or down ...
“””then CME is doing it to protect themselves.””””
No, those are the rules for any commodity exchange, including silver.
If a person buys a December 2025 silver futures contract (5000 oz), that person can demand the exchange deliver 5000 oz of physical silver to them before December 31, 2025.
they don’t have it
Valid points all.
Can you imagine what would occur if the dollar ever lost its place as the primary International reserve currency? Inflation would soar. Along with precious metals. Life for us in this country would be very different. And not for the better.
To stop the inflationary deterioration, at some point, we may be forced to institute a gold backed dollar.
The COMEX does not have enough physical silver to back up the paper silver it holds. The ratio of paper silver to physical silver is approximately 250:1, meaning for every ounce of physical silver, there are 250 ounces represented in paper contracts like futures and ETFs. Recent data indicates that the demand for physical silver is stronger than the supply available at COMEX, leading to a significant imbalance. This situation highlights the growing demand for physical silver, which is outpacing the COMEX’s ability to deliver it, raising concerns about the sustainability of the paper market.
goldinvestmentauthority.com
+4
If I was into speculative investing I would .
Instead I’m making 5 payments a month to have my mortgage to $0 in 12 months.
No debt is the best strategy for tough times .
“far from a bubble. silver has been suppressed for years. It is STILL very undervalued. Just wait....”
I was entering college when the farm crisis hit.
I remember hearing people make statements like you just said about farmland in the late 70’s.
Bubbles suck because they cause crashes and economic turmoil.
Liberals want that turmoil . Not saying that’s you, but we have seen these cycles before
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