Commodity Blog

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, and soft commodities


Silver Drops as COMEX Increases Margin Requirements

May 4, 2011 at 1:42 by Vladimir Vyun

Silver posted the biggest drop since 2008 and other precious metals slid after COMEX increased its margin requirements. The minimum amount of cash that must be deposited to trade silver futures was increased from $14,513 to $16,200 per contract. That’s compared to the margin of $4,250 a year ago.

It was the second increase in less than a week as the exchange raised the margin 13 percent at the close of the session on April 29. An increase of margin usually makes traders to liquidate positions. Analysts said that silver is in greater peril than gold as it has rallied faster and has a greater potential for a correction.

July futures for silver delivery slid as much as $3.499 (7.6 percent) to $42.585 per ounce as of 14:07 on COMEX, posting the biggest fall since December 1, 2008. The prices have gained 28 percent in April and 38 percent this year. June contract for gold delivery dropped $16.70 (1.1 percent) to $1,540.40 per ounce.

If you have any questions and comments on the commodities today, use the form below to reply.

Leave a Reply