AS China imposed export restrictions on silver from January 1/26, concerns grow over a looming supply crunch. Analysts warn that China’s move—combined with COMEX, the New York-based commodity trading house, raising margin requirements—signals market manipulation to suppress prices artificially.
Cairns News sponsors and financial advisers Freedom Financial Solutions have been watching this silver market closely in recent months and alerted us following a recent dramatic drop in the price.
Freedom FFS will be holding an online seminar focusing on gold and silver on January 14th from 12.30pm NSW time with a group question and answer session.
Freedom FFS notes that silver prices plunged nearly 10% in a single day after COMEX hiked margin requirements to $25,000 per contract (each representing 5000 ounces).
“However, prices rebounded quickly in Asian markets, suggesting industrial demand remains strong,” they noted.
FFS planner Janine Bird says China has been quietly stockpiling silver, paying premiums to secure supply directly from miners—bypassing Western exchanges. Meanwhile, Shanghai silver prices trade $4 higher per ounce than COMEX, incentivizing arbitrage traders to buy cheap Western silver and sell high in China.
“Experts predict COMEX may soon impose contract limits—forcing industrial buyers to panic-purchase elsewhere, triggering a price surge. Investors are urged to secure physical silver before supply tightens further,” she says.
Ms Bird believes “Asian Guy” is a “white-hat creation”, ie the work of investors who have been exposing the shonky tactics of the big paper players at the Comex.
“There are too many videos going up in too short a time for one person to do with that depth, but ‘he’ goes into how it works what happens behind the scenes,” she told Cairns News.
“I like Bix Weir too on all this, but this ‘guy’ (video above) is prolific and pretty much on the money. “
She says the video explains the difference between silver paper contracts (crash and calls) and the physical metal in light of the little dip which was all about paper – and what China is doing.
Bix Weir has predicted silver prices as high as US$600 an ounce and describes official prices quoted by COMEX as fake.
