War on Commodities: China will Raise Credit Margins on Silver

From Reuters

The Shanghai Gold Exchange said it will raise margins on silver forwards to 18 percent from 15 percent from Monday if the silver contract hits its daily trade limit on settlement on Friday.

The exchange said it would lift daily trade limits on silver forward contracts to 15 percent from 12 percent if the contract hits limit up or down on settlement on Friday.

Last week’s steep drop in commodity prices may have been influenced by the above. As I have been tirelessly pointing out, global governments has repeatedly been attempting to rein and control prices for political motivations (e.g. manage inflation expectations).