Measures Due to Increased Volatility
Individual Trading Expected to Become Difficult
[Asia Economy New York=Correspondent Baek Jong-min] The price of silver, which had surged due to aggressive buying by individuals, has reversed and fallen. This is attributed to the New York Mercantile Exchange increasing margin requirements for silver trading.
According to Bloomberg News, on the 2nd (local time) in the Singapore market, the price of silver fell 1.7% to $28.905 per ounce.
In the New York Mercantile Exchange trading that closed early that day, March delivery silver surged 9.3% ($2.50) from the previous trading day to $29.418 per ounce. This is the highest record in eight years since 2013. After individual investors who boosted GameStop stocks in the stock market targeted silver as their next target, the price of silver soared.
Bloomberg News reported that the reason silver prices failed to maintain their strength in New York is because the New York Mercantile Exchange significantly increased margin requirements for silver trading.
The New York Mercantile Exchange announced that starting from the 2nd, the margin for silver futures contracts will be raised from $14,000 to $16,500 per contract. The exchange explained that this decision is to appropriately maintain collateral for completing trades in response to increased market volatility.
With higher margin requirements, individuals with insufficient capital inevitably face greater burdens in trading silver.
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