CME has once again made a move this week, the second time within a week that margin requirements have been raised, pulling gold, silver, platinum, and gold all into the fold. As a result, silver directly plummeted from 75 to 70, and on the daily chart, it has already experienced two rounds of decline recently. To be honest, this confirms previous judgments—such sudden market crashes are often repeatedly rehearsed by human factors before a real big plunge finally occurs.

The logic behind CME raising margins is actually quite clear. Essentially, it’s similar to central bank rate hikes—by increasing the cost of capital and reducing available leverage, it ultimately achieves a "draining the swamp" effect. Once this move is made, the market responds by falling.

Looking at history makes it clear. The silver crash in 2011, which also occurred during QE, saw a rapid surge, and CME raised margins five times in just nine days, directly bursting the bubble. Silver then plummeted by 30% over the following weeks. Even more extreme was the Hunt Brothers incident in 1980, when the exchange implemented "Silver Rule 7" (only closing positions, no new positions allowed), combined with the Fed’s rate hikes, which forcibly drove down silver prices.

However, this round of silver rally is different from the previous two. Currently, the geopolitical and global landscape are undergoing unprecedented changes in a century. Financial measures can indeed distort supply and demand relationships and suppress prices in the short term, but the long-term trend cannot be dictated by a single exchange. Ultimately, it must return to the actual supply and demand fundamentals. Frankly speaking, this rally itself contains a lot of bubbles inflated by financial institutions, and a burst is indeed possible. But if we look at normal supply and demand, stable prices should be in the 45-55 range.