Silver futures are pulling back as margin requirements increased from peaking to their 8-year high

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Silver prices pulled back on Tuesday after the Chicago Mercantile Exchange lifted margin requirements.

In a statement released Monday, the CME said margins would be increased to $ 16,500 per $ 14,000 contract starting Tuesday, based on “the normal assessment of market volatility to ensure adequate collateral coverage.”

Silver futures SIH21,
-5.57%
for March, delivery fell nearly 5% to $ 27.99 an ounce after a 9.3% jump and came in at $ 29.418 an ounce on Comex on Monday. The contract hit $ 30.35 an ounce on Tuesday at one point, the highest intraday level since February 2013.

Silver futures have shrunk as retail holdings have risen. According to FactSet, it flows to the iShares Silver Trust SLV,
+ 7.08%
were the fourth highest of all US-listed exchange-traded funds.

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