Silver Slumps After Comex Raises Margin Requirement; Gold Slides

Business Week reports that Silver fell from the highest price in 30 years after CME Group Inc.’s Comex unit raised margin requirements.

The market news is quoted as saying:

The minimum amount of cash traders must deposit when borrowing from brokers to trade silver futures will rise to $6,500 per contract from $5,000 for exchange members, said Michael Shore, a spokesman for the exchange in Chicago. Silver surged as much as 7 percent to $29.34 an ounce in New York today, the highest price since March 1980, before retreating.

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