[pmnerd]

Do me a favor and look at how many CME Notices were issued raising margin requirements for precious metals in the past year. Hint: They do this all the time to account for market volatility and the contract value. If a contract increases by 10% margin is not static. CME raised margin requirements several times in the last month to little market effect.

Silver crashed because China halted trading on the only public silver and gold ETFs Friday. There are videos of HK police arresting guys freaking out because they couldn't cash out beforehand: Apparently the fund had been operating as some kind of pyramid scheme and was not solvent at those prices.

Also on Friday, China urged investors to "invest responsibly" or some such (source: FT) and froze a bunch of suspicious accounts. I believe those accounts were behind the pump and dump social media ("AI Asian Guy" videos on Youtube, investment subreddit spam) with the help of plenty of useful idiots.

There's a ton of good coverage of the precious metals run up in FT this past week.

[jmyeet]

So I found a chart showing silver prices vs margin requirements on Linkedin of all places [1]. Yes, margin requirements change and the exchange tries to protect the market in times of high volatility but increasing the margin requirements significantly means everybody has to put up more collateral even if you're significantly in the black.

That's my point: they're intentionally trying to crash the market. The analsysi that they're defending the banks from a short squeeze seems to fit the available data [2].

As for China, the government is ensuring their local industries have sufficient silver supply, which is particularly important for solar.

The US government has a lot of power to do similar to this but refuse to use it because it would hurt profits. I'm thinking specifically of the Defense Production Act, which could've been used to lower oil and gas prices in 2020-2022. Instead we passed on the costs to consumers, let oil companies export to the world and let them make record profits.

[1]: https://www.linkedin.com/posts/ryanlemand_this-chart-is-wort...

[2]: https://finance.yahoo.com/news/everything-investors-know-his...

[thyrsus]

The left hand scale is presumably dollars per ounce of silver. The right hand side is "margin requirement ($)". I can think of two interpretations of that, neither of which make sense to me. The first interpretation is that one recently needs a $25000 margin per $90 ounce of silver instrument - obviously absurd. The other interpretation is that once you have a $25000 margin you can buy unlimited silver instruments, which is only barely less absurd. How does reality work?