4,490 Banks in China That Must Reserve Physical Silver in Proportion
China Fires Back in the Economic War exposing the West's Fake Paper Silver Scam.
China’s systematic accumulation of gold and silver represents a calculated strike at the structural vulnerabilities of Western financial systems, particularly the paper-based derivatives markets that underpin the U.S. dollar’s global dominance. By aggressively stockpiling physical precious metals, China aims to expose the fragility of fractional-reserve trading systems, where banks like JPMorgan and HSBC maintain massive short positions in silver derivatives—often unbacked by actual metal. The COMEX futures market, with up to 400 paper claims for every ounce of registered silver, relies on the assumption that physical deliveries will remain rare.
China’s relentless physical acquisitions, combined with BRICS nations draining Western vaults, have reduced COMEX-registered silver inventories by over 80% since 2022. A mere 3.5% spike in delivery demands will trigger a default, cascading into a derivatives crisis.
Western banks’ decades-long strategy of suppressing silver prices through paper flooding and spoofing—evidenced by JPMorgan’s $920 million fine in 2020—is unraveling as physical shortages intensify. China’s domestic silver premiums now exceed global prices by 10%, incentivizing arbitrage that further drains Western reserves. With the U.S. strategic silver stockpile depleted since 2021, banks face existential risks if prices surge. Compounding this, China has launched a gold-backed insurance program aimed at revaluing gold to over $5,000 per ounce, a move designed to destabilize dollar-denominated debt markets and retaliate against U.S. financial hegemony.
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GOLD
Dow at 40,368 , at 5:1 we have $8,000 per oz gold
The Dow-to-gold ratio, which has broken decisively below a 45-year trendline, signals a historic shift toward hard assets as confidence in fiat currencies erodes.
This aligns with the U.S.’s escalating debt crisis, where $34 trillion in federal debt—projected to hit 200% of GDP by 2040—has spurred nations like Russia, India, and Saudi Arabia to exit the “toxic orbit” of the dollar. Even traditional allies are diversifying reserves into gold, wary of the dollar’s vulnerability to political volatility, such as the Trump administration’s erratic tariff policies and trade wars.
Amid this perfect storm of financial, geopolitical, and monetary instability, gold and silver are poised for a historic rally. Precious metals thrive in chaos, and current conditions—derivatives exposure, de-dollarization, debt reckoning, and geopolitical fractures—create an unprecedented bullish setup.
As China accelerates its endgame to collapse the paper-metal system, investors fleeing currency debasement and banking risks could propel gold beyond $5,000 and silver past $100, rewriting the rules of global finance.