We get a lot of comments and emails to the effect of: Last week’s silver plunge was an orchestrated fraud, because COMEX hiked margins in a deliberate attempt to shake people out of their long futures positions.
Anyone who believes that needs to read this post at Stone Street Advisors. Margins are set by a formula based on volatility, and exchanges need to hike them some times in order to avoid going broke.
Even on this blurry chart, you can see that silver volatility has been through the roof. Based on pre-existing rules, these margin hikes were justified/required.
Besides, are people really complaining that there isn’t enough leverage in the world?