The following two charts basically reflect why the sharp decline in gold and silver occurred. Additionally, although gold and silver plunged, the CME's new margin requirements will still be adjusted after February 2nd. Especially since the margin requirements are based on the nominal value. In other words, this crash will cause the actual margin ratio to far exceed the current level. Put simply, it’s roughly equivalent to saying: those without sufficient capital should not play in the commodity markets. The consensus of crowded trades combined with changes in leverage margin requirements means that short-term volatility will remain relatively high, and liquidation will continue.