Silver has led the charge down 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." There is some speculation that such a steep slide towards that level could ignite some tentative bargain hunting. Gold, on the other hand, is a deeper and more liquid market, which makes it able to absorb volatility better, down only 4% from its record intra-day high of $1,577 an ounce. Mihir Dange, trader at Arbitrage, thinks that margin hikes won't hit the gold market.
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