China Just Broke The Global Economy – WTF Happened To Silver?!

"Because with silver already up 150% this year, the next move isn't going to be gradual. It's going to be vicious."

"Electronics manufacturers will be soon forced to raise prices as their cost to make each item goes higher and even Elon Musk warned that the situation was not good with an estimated supply shortage of 100 to 250 million ounces."

"However, some estimates suggests that the papertoysical silver ratio is 378 to1, meaning there is only 1 ounce of physical silver for 378 shares of the ETF, a number that would force banks to buy up whatever they could at whatever price they needed to just because they're obligated to hold the underlying asset."

"Beginning January 1st, China will implement a brand new, highly restrictive export licensing regime for silver. Essentially, the barriers are so high that to qualify, a company must agree to produce 80 metric tons of silver annually. Only large state approved or heavily audited producers will be granted licenses. And since these are all done on a case-byase basis, Beijing could simply cut off the global supply of silver if they want to prioritize their own needs."

"Keep in mind that China manufactures over 80% of the world's solar panels and a massive share of EVs, of which heavily rely on silver. As a result of that, if China is able to restrict their own exports, they'd be able to give priority to their own manufacturers at lower local prices and also push out the rest of the world. They'd also be able to gain leverage on a very strategic and very important asset of which could potentially be used in future negotiations. Just saying, especially when AI processing power is incredibly reliant on silver."

"2026, however, is likely going to be another story entirely."

"So, if you're looking at silver prices, the question isn't will it be higher next month, but rather will silver continue to be a critical part of our economy 5 to 10 years from now? If the answer to that is yes, then you better brace for a lot of volatility."

"I think what we may see next year is a US dollar and sovereign debt crisis."

"Sovereign debt and currency crisis will make the 2008 financials crisis look like a Sunday school picnic."