CME announced on 26 December 2025 that the initial margin for March 2026 silver contracts will rise to $25,000 with effect from 29 December 2025. This increase will raises the cost for traders holding large positions in silver futures. Traders who are unable to the capital requirement will be forced into liquidation. This announcement might be a spanner bring thrown at those betting on silver prices to go higher. Historical data showed that CME margin hike will lead to significant prices correction. The most recent, the silver squeeze in 2011.
Silver prices most probably slide toward end 2025. If CME continue to hike margins within a short space of time in early January 2026, there is a high chance of forced liquidation coupled with mass profit taking. That will be a nightmare scenario for silver. A 30% to 50% correction is on the cards, with not many having the courage to catch the falling knife.
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