Global Silver Shock: China’s Bold Move Set to Ignite Historic Price Surge
by Jon Little intern Mr. Carmine Lombardi
The Relentless Cycles of the Mining Industry
History repeats itself—especially in mining. Why do fortunes rise and fall so violently in this sector? The answer lies in the very nature of resource extraction: as mines are worked, the richest ore is depleted first, leaving lower-grade material behind. Profits dwindle, competition intensifies, and eventually, the cost of extraction outweighs the value of the metal. Mines shutter, production plummets, and scarcity looms.
But what happens when scarcity strikes just as demand surges? Are we prepared for the next great shortage?
The Hidden Hand: Price Controls and Market Manipulation
For decades, the true value of precious metals was obscured by powerful actors. Did you know that, to mask the steady erosion of currency value, governments and central banks tightly regulated gold prices? The infamous London Gold Pool, a cartel of central banks, worked tirelessly to keep gold fixed at $35 per ounce—until the system collapsed under its own weight in 1968.
But did the manipulation end there?
Or did it simply evolve into something even more insidious?
The answer is the latter, from Wikileaks look at this smoking gun!!!
Future markets were intentionally created to demoralize the silver and gold stackers.
Proof below:
The Rise of Paper Gold and Silver: A Mirage for Investors
With the fall of formal price controls, a new era of market manipulation dawned. Enter the world of futures contracts and Exchange Traded Funds (ETFs)—financial innovations that allowed traders to buy and sell vast quantities of gold and silver without ever touching the physical metal.
Ask yourself: when you buy a gold ETF, are you really owning gold, or just a promise? The proliferation of "paper" metals has reached staggering proportions: for every ounce of physical gold, there are over 100 ounces of paper claims. For silver, the ratio is even more extreme, with hundreds of paper ounces for every real one.
How long can such a system persist before reality catches up?
China’s Physical Market: A Game-Changer
In 2002, China launched the Shanghai Gold Exchange, creating a physical marketplace where every bar of gold or silver actually changes hands. By 2014, the exchange opened to the world, and today, China stands as both the largest producer and consumer of gold, and a dominant force in silver.
Why does this matter? Because in China, unlike in the West, paper promises are not enough—only physical delivery counts.
You are experiencing and witnessing the catalyst that finally exposes the disconnect between paper and physical markets
Depletion of Reserves: The Clock Is Ticking
The world’s mineral reserves are running out. In Mexico, silver production may become negligible within just a few years. China’s official reserves could be exhausted within a decade. Meanwhile, demand for silver is exploding, driven by technology, energy, and defense.
Will the world wake up to the coming supply crunch before it’s too late?
Today is the entry point, tomorrow could be too late.
The New Gold Standard? Central Banks and Basel III
Since 2009, central banks have returned to gold, quietly rebuilding reserves as if anticipating a return to a gold-backed system. Recent Basel III regulations have further elevated the status of physical gold, granting it a privileged position on bank balance sheets, while penalizing paper claims and derivatives.
Why are the world’s largest financial institutions scrambling to secure physical gold?
What do they know that the average investor does not?
China’s Strategic Response: A National Mobilization
On June 23, China unveiled an ambitious plan to revitalize its gold and silver industries: modernizing mines, improving refining, boosting recycling, and—crucially—letting prices rise to reflect true supply and demand.
This is the opening shot in a global revaluation of precious metals with Silver outperforming Gold BIG TIME.
The Silver-Gold Ratio: A Market Out of Balance
Consider this: in May, it took 104 ounces of silver to buy a single ounce of gold—a ratio wildly out of sync with historical norms and geological scarcity. Global mine production in 2024 was just 8:1 in favor of silver, yet the price ratio is more than ten times that.
If the market corrects, silver is poised for a meteoric rise
The Looming Short Squeeze: the Tables are Turning
For years, powerful banks suppressed silver prices through massive short positions. But the tide may be turning. As China’s influence grows and Western bullion banks shift to long positions, the stage is set for a dramatic reversal. The Shanghai price for silver already exceeds that of New York and London, pressuring global markets to follow suit.
Speculators betting against silver will soon find themselves trapped in a historic short squeeze
The Stakes: Trillions in Derivatives, Billions at Risk
The derivatives market for precious metals is colossal—over $1 trillion in gold, and $100 billion in silver. If China succeeds in revaluing silver, the resulting short squeeze could trigger tens of billions in losses for those on the wrong side of the trade.
Are you ready for the shockwaves that could soon ripple through the global financial system?
The evidence is mounting. The cycles of mining, the manipulation of markets, the depletion of reserves, and the rise of China’s physical exchanges all point to an inflection point for precious metals. The only question that remains: will you be a bystander, or will you act before the next great revaluation unfolds?
Known as "Graddhy" in the trading and investing world.
Graddhy writes:
pay attention to the relatively small divergences (more narrow Gold to Silver Ratio) This will close or narrow towards 50-1. Eric Sprott says closer to 20-1
end of segment