They are getting better and better at deception. :)
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.
Agree. Paying down debt is always a good strategy. Much better than trading.
this is not a silver bubble. it’s been suppressed for years and now reaching closer to real value, the correct ratio with gold. in addition, almost every application in the world requires silver to operate. EV’s, solar, weapons, tech, etc.
Silver is still WAY undervalued. there may be a small correction here and there over these next days and weeks but it will settle considerably higher than where it is now
I more than tripled my $$ on a January 30, $70 call option. Bought last Monday at $195, closed yesterday at $697.50. Hubby did about the same but closed out of his. I held on to mine. Monday is going to be very interesting. I just read a different article about big banks calling each other in the wee hours of Christmas Eve morning. Apparently, a LOT of banks sold $75 calls with a January expiry when silver was at $50. They are now being squeezed BIG TIME. One bank is on the hook for half a billion, if any of this report is true.
Up 11% on a Friday the day after Christmas. What?
Silver cowld easily triple with gold steady, and still be within historical ratios.
This is not a speculative bubble. There is a complete shift in global demand and a severe physical shortage. Chicago Mercantile Exchange Group margin boosts on silver contracts will not even phase the demand which is mostly China, India and US driven based on underlying industrial needs and real reserves increases by banks and others to move away from USD reserves. Biden pretty much destroyed the dollar as a desirable reserve currency.
“this is not a silver bubble. it’s been suppressed for years and now reaching closer to real value, the correct ratio with gold. in addition, almost every application in the world requires silver to operate. EV’s, solar, weapons, tech, etc.”
This discussion is what concerns me.
Relating the farmland price crash and agriculture crash of the 80’s.
Vividly remember people saying why to buy farmland pre crash .
“They aren’t making more of it, the worlds population is going up and we have to feed them, cash flow doesn’t matter only asset prices matter.”
These boring currency videos are great
Biden pretty much destroyed the dollar as a desirable reserve currency.
Gold buying quickly outpaced US Treasury buying, ( US Treasury sell offs) and not a word about it in western MSM. Stackers can thank senile Joe and his Ukie war debacle. It is irreversible, and a very, very positive move here on out for PMs, thanks Joe!.....this PM Bull run is historic.
To stop the inflationary deterioration, at some point, we may be forced to institute a gold backed dollar.
Excellent graphics, a good way of subtly telling everyone the Goldbugs were right. Only Gold (and Silver) is Wealth, everything else is credit ( debt). All the paper and electron, thin air holders are getting re-educated....which will be painful for most.
hunts lost because the big guys changed the rules...
,,, I agree. I'd like to thank JP Morgan and other parties that have suppressed the price and I'd like to thank China, who have put an end to that. In between I've done OK on the recent runaway gains. Now I'm buying canned food, packs of toilet rolls and I'm looking for a good size diesel tank. Storing value outside bank accounts is where it's at.
True.
Yessir. Indeed.
What is going on here is Gold and Silver are calling “Bullshit” on the whole severely overbaked Dollar.
The US debt is simply unsustainable.
Treasuries are gone.
Stock market is next.
Too late for interest rates to be corrected out of Brandon Idiocy.
Fed missed that opportunity.
Stay frosty and hang on. Here comes a record breaking melt down. Gold at 5000 and silver at 200 before the end of January is a good bet.
It’s unfixable no matter the cost of Margin for PM contracts.
Stock market is next.
https://www.vice.com/en/article/venezuelas-stock-market-is-booming-for-all-the-wrong-reasons/
A totally trashed, inflation destroyed country and currency, but their stock market is on a continuous rise.
Same same playing out with our DOW. The chart keeps rising BUT the unit of measure ( BOLIVARS, Dollars) is declining. The day comes when our DOW hits 60,000, ( yes it will happen) but the unit of measure Dollars will be worth much, much less, as we all are witnessing.
Getting spendable currency out of PMs is a pain and costly (the spread), but not impossible
——-
What? Gold is easily the most liquid asset on the planet. Nothing else comes close. Reputable coin shops and dealers have tight spreads on buying and selling. Takes only seconds, cash in hand.
They are getting better and better at deception. :)
Here is a good way to dabble with silver for beginners to get a little skin in the game if they really don’t want to own it physically - although they can if they want. I used them for over 20 years now just on a no physical delivery basis. They always pay quick when selling. Personal checks are good as cash - if they clear and price is locked in instantly while waiting for payment to arrive. Minimum order is one ounce!
https://online.kitco.com/kitco-pool?srsltid=AfmBOoqnjEndNUvkZQakVx-Gt4Q07O1zGKcbLqT5Hd3r1hV_aJ523uEU
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