Raising margin requirement seeks to solve or in this case stem an immenent problem. The Fulfillment of physical silver. CME mandate is to facilitate the delivery of physical silver to the owner of those futures contract. While traditionally, contracts have been rolled over, December saw a different outcome. 60% of the expired contracts sought For delivery instead of rollover. So now what? Expect more CME intervention to stem runaway silver prices while they bolster their inventory.
I am still of the view that silver will climb.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
