Are the powers that be trying to crush this silver spike? Let's explore!
I just watched an interesting video, shared by @kerrislravenhill. See here
It's a little alarmist, but is it wrong?
If you’ve been stacking silver for any length of time, you’ve seen this pattern before. Silver starts running hot, momentum builds, and then, right on cue... the price gets slammed. It seems to happen every single time! This time, the culprit being blamed is the COMEX, after it announced a 10% increase in margin requirements on silver futures.
To many stackers, this feels like classic price manipulation. Raise margins at the peak, force leveraged traders to sell, and watch the price drop. And to be fair, the result is completely predictable: weaker hands get flushed out, paper selling accelerates, and silver drops a few dollars in a hurry.
But here’s where the story gets a little more nuanced.
“Manipulation” can mean different things. There’s illegal manipulation: spoofing, fraud, coördinated deception. And then there’s something more structural: rule changes that are technically legal but have very clear market effects. Margin hikes don’t create more silver, and they don’t suddenly erase physical demand. What they do is make leverage more expensive, which cools speculative rallies fast. That's what happened here.
That's really the thing. That distinction matters, especially for stackers. These moves hit paper silver hardest. Physical silver doesn’t magically become more plentiful because futures traders need more collateral. If anything, the repeated disconnect between paper price volatility and physical reality is exactly why so many people stack in the first place.
So is this price manipulation? Or is it a risk-control system that just happens to knock the wind out of silver rallies every time they get interesting?
Maybe it’s a bit of both.
But the thing is, it may not matter, Silver is on a rally and even this may not stop it. It slowed it a bit, but I bet we still hit $70 before Xmas.
Either way, the pattern keeps repeating — meanwhile we just keep stacking.
But I don't know, maybe I'm trying too hard to be rational and I'm missing the obvious. What do you think?
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David is an American teacher and translator lost in Japan, trying to capture the beauty of this country one photo at a time and searching for the perfect haiku. He blogs here and at laspina.org. Write him on Bluesky. |
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Raising the cost of carrying a silver contracts has gone up significantly forcing many smaller players to liquidate their positions, pay up or face a Margin call. Back in 1980 the COMEX raised the cost to bust the Hunts into bankruptcy. The only party that could afford it would be the big banks themselves if they wanted to. ANd when they do, the COMEX will have moved the cost down by then.
It’s funny to me how many people shout manipulation when we are up 13% on week including a one day move down. We are being manipulated upward not down. !LADY !PIZZA
Silver was $57.69 Monday, it closed week Friday at $62.085
Anyone complaining about manipulation downward is on crack! Nothing goes strait up, we are in the wildest bull run in decades and up 110% in 2025.
It’s being manipulated up mostly, not down.
!LADY !PIZZA
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As long as it eventually goes up again, I guess I don't care. I mean realistically precious metals are supposed to be a sort of stable store of value right?
It's the old COMEX game that has been around forever. They fight the pumps by forcing the little guys out knowing the only ones able to make margin calls are those with very deep pockets. It may have slapped silver down to $61, but we will likely see $70 by the end of the year, maybe even Christmas. You're right, they can't get erase physical demand as much as they would like to.
Best move is to keep on stacking, because the silver rally is far from over. And the silver shortage isn't going away any time soon.