CME Changes Margin Calculation As Silver Eyes $100 Per Ounce - ProShares Ultra Silver (ARCA:AGQ), Sprott Silver Miners & Physical Silver ETF (NASDAQ:SLVR)

Group 1: Market Changes and Risk Controls - The Chicago Mercantile Exchange (CME) has implemented tighter risk controls in the precious metals market by shifting margin requirements from fixed dollar amounts to a percentage of contract value [1][2] - The new system automatically adjusts margin requirements based on the metal's price, increasing the cash traders must post as prices rise, thereby reducing effective leverage [2] Group 2: Silver Market Dynamics - Silver has seen a significant price surge, with spot silver rising over 24% in the first fourteen days of 2026, reaching above $90/oz, following a 148% gain in 2025 [3] - The increase in silver prices is driven by geopolitical tensions, tightening inventories, and expectations of interest rate cuts by the Federal Reserve [3][5] - A persistent structural deficit and inelastic supply are fundamental drivers of the silver market, with 70% to 80% of global silver output produced as a byproduct of other metals [4] Group 3: Price Discrepancies and Historical Context - Despite the recent rally, silver prices remain below historical inflation-adjusted levels, with the 1980 peak of $50/oz equating to at least $150/oz today [6] - There is a notable disconnect between paper prices and physical availability, as spot silver reached $90/oz while physical coins are being sold for no less than $120/oz in markets like Dubai [7] - The Sprott Silver Miners & Physical Silver ETF (NASDAQ:SLVR) has increased by 11.47% year-to-date, reflecting positive market sentiment [7]