China Back in the Game after Qingming Festival
Silver and Gold set to SkyRocket as Global Recession is underway.
Last night, the silver market witnessed a dramatic surge as prices skyrocketed by $1.43 within just 30 minutes—the largest half-hour move to the upside since the Hunt Brothers era. This explosive rally underscores growing volatility and momentum in precious metals markets. Meanwhile, we’ve been highlighting how various industries in China have been quietly hoarding silver, bypassing the COMEX system.
They recognize that current prices are extraordinarily undervalued and are acting on the reality of a looming supply shortage.
Now that China has returned from its Qingming Festival holiday, the dynamics are set to intensify. With Chinese buyers back in full force, the "game is back on," and their appetite for gold and silver could further amplify global market movements.
This re-entry into the market will reignite demand pressures, particularly as China’s strategic accumulation reflects broader shifts in global financial power.
Biggest half an hour move to the upside since the HUNT BROTHERS
China is Back after Holiday
China building while US is bombing
Facts to recall: Once Nixon closed gold backing in the 1970s and US dollar lost its Saudi oil peg last year China (along with BRICS ++++) jumped all over this. Only thing backing US dollar is US military and they’ve been active bombing Russia and various targets in Middle East.
As the U.S. focuses on military interventions in the Middle East and Russia, China is reshaping global trade through strategic economic initiatives. A cornerstone of this transformation is the Digital Silk Road, where China integrates critical infrastructure loans with participation in its Yuan Bridge payment system. Central to this de-dollarization effort is the gold-for-oil peg, aligning commodity trade with the yuan. These moves challenge the dollar’s dominance, signaling a shift in global financial power toward China’s digital and commodity-backed systems.
De-dollarisation is now a reality: A payment trial between Hong Kong and Abu Dhabi reduced transaction fees by 98% and eliminated six intermediary banks.
Technological advantages of digital RMB:
Enforces anti-money laundering rules via smart contracts.
Provides full traceability of transactions.
Enables ultra-fast payments, such as the China-Indonesia initiative that achieved cross-border settlement in 8 seconds, reducing inefficiencies by over 100x.
Adoption by Middle Eastern energy giants: Settlement costs have been cut by 75%.
Global pilot participation: 23 central banks have joined the digital RMB pilot, attracted by its performance and efficiency.
China’s Digital Yuan Accelerates the Decline of Dollar Dominance
The global financial system is undergoing its most significant transformation since the Bretton Woods Agreement, driven by China’s rapid deployment of its central bank digital currency (CBDC), the digital yuan. This innovation is not merely a technological upgrade but a strategic tool reshaping trade dynamics, challenging U.S. financial hegemony, and redefining the balance of economic power.
A Technological Leap Over Legacy Systems
The digital yuan’s blockchain infrastructure enables cross-border settlements in seven seconds—a stark contrast to the 3–5 days required by the SWIFT system.
Transaction fees have plummeted by 98%, offering unprecedented efficiency for businesses. For example, a recent real-time payment between Hong Kong and Abu Dhabi demonstrated the system’s disruptive potential, bypassing correspondent banks and SWIFT entirely. This efficiency has already attracted 23 central banks to join China’s “digital currency bridge” initiative, signaling a growing appetite for alternatives to dollar-dependent networks.
Strategic Integration with Global Trade
China has embedded the digital yuan into its Belt and Road Initiative (BRI), creating a “Digital Silk Road” that pairs currency flows with physical infrastructure. The currency now facilitates 38% of global trade volume through partnerships with all 10 ASEAN nations and six Middle Eastern countries. European automakers and Middle Eastern energy traders report 400% efficiency gains and 75% cost reductions by settling transactions in digital yuan, illustrating its rapid adoption. This integration extends to critical projects like the China-Laos Railway, where currency and infrastructure synergies reinforce China’s trade corridors.
Geopolitical Repercussions
The digital yuan provides a lifeline for nations under Western sanctions, such as Iran and Russia, enabling them to bypass U.S. financial surveillance. ASEAN’s cross-border RMB settlements surged to 5.8 trillion yuan ($800 billion) in 2024—a 120% increase since 2021—as countries diversify reserves away from the dollar. Meanwhile, China’s alliance with oil-rich Gulf states has enabled the first digital yuan-settled crude oil trades, directly challenging the petrodollar system.
Western Complacency Meets Chinese Execution
While China’s digital yuan transactions surpassed $1.2 trillion in 2024, the U.S. and EU remain mired in regulatory debates over CBDCs. The Federal Reserve’s hesitation contrasts sharply with Beijing’s aggressive rollout, leaving Western institutions vulnerable to a rapidly evolving financial landscape. The digital yuan’s programmability—featuring automated anti-money laundering controls and integration with quantum communication networks—further solidifies its appeal.
The Inevitable Shift
The dollar’s share of global reserves has already fallen to 58%, its lowest level in decades, as the digital yuan gains traction. China’s strategy combines technological prowess with geopolitical maneuvering, offering a viable alternative to nations seeking autonomy from U.S.-centric systems. While the dollar remains dominant, the digital yuan has ignited a structural shift that could see it become the backbone of a multipolar financial order.
The question is no longer if the dollar’s supremacy will erode, but how quickly the West will adapt to a world where financial power is no longer synonymous with the greenback. China’s digital yuan is not just a currency—it is the vanguard of a new economic paradigm.
end of segment
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