Silver has tanked 18% from its high last week of $49.82 led in part by oversold conditions and three margin hikes by the CME as the futures market tried to handle the volatility.
"The reason why the exchanges and clearing houses are raising their rates is because of these violent moves we have been having in silver, anywhere from 5-10% moves on a daily overnight basis," says Anthony Neglia, president of Tower Trading, who says the hikes are not affecting his silver positions.
Neglia likes silver above $42 and still believes with metal will hit $50, but that below $40 he would get bearish. He said, "$38 is your next level because that is where this whole move started from."