Yesterday, between Noon EST and 1:08 pm EST, I watched as SLV, a proxy for the price of Silver, rallied 76 cents from $27.96 to $28.72 to hit a new 30 year high. I sat and watched as my largest silver holding, SSRI barely reacted.....and then started to sell off at 12:15 pm, a full 53 minutes before SLV hit its new high. By 1:08 pm, SSRI was actually trading lower than it had been at Noon EST...meaning SSRI's share price had more than totally ignored the 76 cent surge to new highs by SLV. It was as if somebody knew bad news was about to be released....and it was extremely frustrating.

After the fact....the CME Group news that they were raising Silver margins came out. What I would love to know is who knew this news ahead of time and did they take advantage of that knowledge to sell the silver mining equities during that big 76 cent surge in Silver?

I'd also like to know if the CME group news came out at 1:08 pm EST, or somebody also sold silver itself ahead of this news because they had early knowledge that it was about to be released.

Bill Murphy made this related comment in his Midas report last evening:

"What happened in the last 90 minutes ought to be added to any Justice Department investigation into the manipulation of the silver market. It doesn't get any more blatant than this."

CME Group to raise silver margins by 30 percent

NEW YORK, Nov 9 (Reuters) - CME Group said on Tuesday it will raise its silver futures trading margins by 30 percent to $6,500 an ounce from $5,000 an ounce effective Wednesday.

U.S. silver futures surged as much as 6 percent before retreating, with volume rising to an all-time high on Tuesday, boosted by extreme price volatility and possible short covering, traders said.

Exchanges often raise margins to mitigate risks as price volatility increases.