In an attempt to quell the recent volatility experienced in the silver markets, the CME Group, whom operates the COMEX where silver futures trade, has raised margin requirements for futures contracts of the precious metal. This comes on the back of the metal rising from spot prices of $25.27 last Wednesday to as high as $30.13 today.
The recent volatility is the result of a number of traders, including Redditors, recently making efforts to cause what is referred to as the “silver squeeze” within the silver markets. Following the events that unfolded last week in relation to Gamestop’s equity, traders have been on the hunt for one of the most shorted markets in the world, which happens to be silver.
Following the rise in price however, the CME Group has now raised margin requirements on silver futures from $14,000 per contract to $16,500 per contract, a 17.8% increase. The increase will be placed in effect as of February 2, with the margin marking an eight year high for the metal.
Silver is currently down 1.85% to $28.49 as a result.
Information for this briefing was found via the CME Group. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.