Silver is getting more expensive to trade, but it could still hit $100. Here’s how.

Core Viewpoint - Silver prices are reaching record highs, with expectations that they could surpass $100 an ounce soon, despite increased trading costs due to higher margin requirements set by CME Group [1][2]. Group 1: Margin Requirements and Trading Costs - CME Group has raised the margin requirement for silver futures contracts to 9% from approximately 7.2% in mid-December, indicating a tightening of trading conditions [2]. - Higher margins have not deterred investors, who continue to drive silver prices upward, reflecting strong demand and market confidence [3][7]. - CME describes margin as a risk-management tool intended to protect market participants and does not aim to influence market direction [4]. Group 2: Market Dynamics and Price Trends - The price of silver has surged to $91.44 an ounce, marking a 30% increase year-to-date, while gold is also approaching record highs at $4,627.30 [6]. - Geopolitical risks, particularly surrounding Venezuela and Iran, are contributing to the rising prices of precious metals, with silver keeping pace with other metals [5]. - Investors have accumulated significant equity in their margin accounts due to the dramatic gains in silver prices, making it easier to meet higher margin requirements [7]. Group 3: CME's Justification for Margin Adjustments - CME's adjustments to margin levels are a response to the high volatility and price appreciation observed in the metals markets since the end of 2025 [8].