These past few days, a phenomenon in the silver futures market is worth pondering: a major futures exchange suddenly increased the margin requirements for silver contracts, citing the need to manage market volatility. It sounds reasonable, but seasoned market insiders believe there’s more to it than meets the eye.

An analyst who has successfully predicted two financial crises spoke candidly—this isn’t risk management; it’s clearly about giving large banks trapped in "naked short" positions a breathing space. In other words, the margin hike acts like a "smoke screen," hiding a deeper issue: some banks have taken on excessive short positions in silver, and with physical supply tightening, they’re at risk of being overwhelmed, prompting the exchange to step in and "rescue" the situation.

This maneuver appears to be a textbook classic—using margin as a weapon to push retail and small investors out of the market, buying time for the struggling short positions. But ironically, the more pressure applied, the more it exposes a deeper problem: is physical silver supply truly tight?

There’s an old story in the market—the attempt by the Hunt brothers in the 1970s to monopolize the silver market. But now, it’s different. Today, inventories are continuously depleting, and both the US and the EU have classified silver as a strategic mineral. The remaining 22,000 tons of silver in London vaults have become the new focal point of contention. Big funds and smart money are rushing in, especially before China’s export ban is fully enforced.

Some analysts expect silver prices could surge to $200 per ounce. From this perspective, any current pullback is actually worth paying attention to—those who truly understand the market have long regarded it as a long-term accumulation opportunity.