I wish to clear up a misconception floating around that the CME has hiked margin requirements on the main silver contract. It has not. Margins were raised on silver intramarket spreads, not the main 5,000 ounce silver contract.
Margin requirments for the full sized, 5,000 ounce contract remain the same as last month (Jan 20) when they were raised to $11,138 from $10,463 for initial margin.
The previous hike in margin rates for silver occured last year (Dec 16, 2010) when they were raised to $10,463 from $9,788.
Prior to that, margin rates on these full sized silver contracts were raised Nov 16, 2010 when the initial margin requirement was raised to $9,788 from $8,775.
I will keep the community updated on any subsequent margin hikes in silver or in gold.
"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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