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<p>[QUOTE=&quot;WingedLiberty, post: 1176713, member: 26030&quot;]A margin requirement is basically a measure of how much of one&#039;s position in an investment (a stock, oil, corn, silver, gold, copper, etc.) must be bought with one&#039;s own money vs. how much can be bought with borrowed money</p><p><br /></p><p>When the CME (Chicago Mercantile Exchange) raised margin requirements on silver last week ... basically they were changing the previous &quot;rules&quot; for investing in silver ... rules that applied to how much of ones postion could be bought with borrowed money.</p><p><br /></p><p>When the CME raised silver margin requirements last week, investors that had borrowed money to invest in silver and were fully margined&nbsp; ... were forced to sell their paper contracts of silver to raise their cash levels and drop their silver holdings so it conformed with the new required cash levels in their accounts.</p><p><br /></p><p>The CME actually raised margin requirements on silver 4 or 5 times last week, which is basically unheard of&nbsp; (I have never seem margin requirements raised that many times in that short a time span).&nbsp; It appears to me (just my opinion) that some big well-connected players wanted silver prices lower and were able to convince the CME to raise margin requirements so that the price of silver would fall dramatically (as people were forced to sell paper silver contracts to raise cash) ... that is why silver fell from $50 to $33 in a week.</p><p><br /></p><p>By the way, when I say a &quot;paper contract in silver&quot; i am talking about buying silver through an ETF (exchange traded fund) such as SLV or AGQ.&nbsp; When you buy those ETF&#039;s you are basically buying paper, that promises to deliver silver on demand.&nbsp; It&#039;s a basically promisary note for silver.[/QUOTE]</p><p><br /></p>

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