The FED can't tolerate numbers which indicate either high...

The FED can't tolerate numbers which indicate either high inflation (Most monetary) now, or to come.

If prices of these precious metals were much lower then it could claim there was less inflation because "the numbers say so". (In reality, it would be higher).

And in the US election year, one can't have too high Gold and Silver prices because that indicates high inflation.

So the FED is throwing in everything it has: margins were increased and after a week were again increased; now they have increased these 2 days thereafter. If necessary, expect them to increase these every day till the Hedgefunds get tired holding Silver and sell.

Of course in inflation terms, silver is not that expensive really but expensive enough to the FED.

Once Gold moves too high, the FED will increase margins as well.

The FED is fighting battles on several fronts, all of their own making.

Gerry