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Yesterday the spot price of silver closed at $56.67. This was an all-time high daily close, an all-time high weekly close, and an all-time high monthly close.

https://www.apmex.com/silver-price

Some are saying that the government manipulators have lost control of the price. However, they still have “tools” in their toolbox that I’m sure they will use shortly, rather than admit defeat. In late 1979 into early 1980 they raised margin requirements (downpayments) on purchases of silver so that speculators could not buy as many contracts.

A “contract” is for 5,000 oz of silver. To purchase a contract required only $30,000 as a downpayment until regulators raised it to $40,000 and then to $60,000. When this did not work, they limited the amount of silver contracts that anyone could hold, forcing some people to either double their downpayment or sell half of their silver.

This worked, and silver prices crashed from its $50/oz high to about $4/oz. It remained low for many years until April 2011, when the silver price again went up to $50/oz. The regulators raised margin requirements from $6,500 to $14,500, which again crashed the price down to $10-20/oz.

In 2021, the CME raised margins by 18% after a silver price surge.

In 2025 silver prices doubled from about $25/oz to $50, and the Comex again began raising margin requirements. However, so far this effort has failed to crash the price. Perhaps the big silver investors have learned that margin requirements can be raised at a moment’s notice, and that this can be fatal.

Also, when speculators sell “short” (gambling that the price will drop later), and when the price goes up instead, they too are affected by margin calls. The big banks are in the habit of shorting the market to keep prices low, but every time the price rises $1/oz, they lose $1 billion. Yesterday prices went up more than $3/oz. If this continues, those big banks could be bankrupt rather quickly. However, it is almost guaranteed that the regulators would immediately bail them out by raising margin requirements and thereby forcing down prices.

Those who buy silver (or gold) should have a long-term view, rather than think in terms of buying now and selling next month. It should be a long-term investment. Treat it as a long-term savings account. In fact, it is not really an investment at all. It is a way to exchange fiat currency for real money to avoid losing one’s savings to inflation. Fiat currency is constantly losing its purchasing power, but over the long haul, silver and gold holds its purchasing power.

Keep in mind that the spot price of silver is set primarily by electronic purchases, not by purchases of actual physical silver. It is dangerous to buy on margin when the regulators have the power to raise margin requirements at their whim. Today’s prices are being driven mostly by the shortage of physical silver in industry. Virtually all electronic devices, solar panels, automobiles, and military missiles require silver. So some companies are buying silver now so make sure that they do not run out of it.

The average person who buys silver at a coin shop does not buy it on margin, so he is not forced to sell when the regulators manipulators raise their requirements. Nonetheless, spot prices are the “paper price” when silver futures contracts are bought and sold. Keep this in mind if you buy silver coins, because real silver/gold costs more than a piece of paper that says, “I owe you.”

https://www.youtube.com/watch?v=8P9J_nZrXVQ