Factors causing silver price crash

Silver crash has happened.
What cause silver price crash?
1.  Margin requirement
CME keeps on changing the margin requirement.
Since many traders and speculators are using margin, a change in margin requirement means they have to put in more cash upfront or borrow less money to play the silver market.
While changing margin requirement is nothing shocking, CME announcement is causing a ripple because this is the fourth time so far.
2.  Strengthening of US dollar
Since gold and silver move in opposite direction to the movement in US dollar, the strengthening of US dollar means that silver and gold will get cheaper.
3.  Crude oil is lower
Crude oil, gold and silver belong to the commodity market.
A movement in the price of one commodity easily affects the other commodity.
Since crude oil has led the increase in price for gold and silver, the lower price of crude oil brings the price of gold and silver lower.
4.  Sentiment
The technical analysts and many investors feel that gold and silver are long overdue for major bull market correction.
Since the market sentiment is so negative, and many people sell off early to lock in profits, the massive sell-off triggers a silver crash.
5.  Political pressure
The German politicians put pressure on Portugal to sell off its gold reserve.
If Portugal starts to dump its more than 300 tons of gold into the open market, the price of gold will sink like stone.
A report like this certainly spooks investors into a selling mood.

What is next?
The price of gold and silver is dependent on macroeconomic factors.
If a major unrest happens in certain parts of the world, the price will spike again.
If the US dollar keeps on strengthening, the silver crash will continue.

The silver crash provides buying opportunities for us to load up on silver.
If you are afraid of sinking too much money on silver bars or silver coins, you can use the dollar cost averaging method to buy.