Trump could easily destroy the silver market. Seeing the green agenda is a government fiat imposition ( grift ) on the free market, he could take his big, beautiful gold plated pen and sign away all environmental regulations. That would drive down this artificially inflated demand for silver. But that would be an act of desperation in order to try to save the American economy, which would only happen when the $ is kaput.
Lau, you are the only one reading the fine print. That January 1st decree wasn't policy; it was a "Thermodynamic Veto."
You nailed the choke point: 70% Refining Capacity. This is what I call "The Smelter Trap." Western investors look at maps and see silver mines in Mexico, Peru, and Australia. They think: "China doesn't own the dirt, so we are safe." Wrong. You can't plug a raw ore rock into a Solar Panel. It must be refined. And because of System A's energy inflation and environmental paralysis, the West lost the ability to smelt decades ago. China doesn't need to conquer the mine; it just needs to close the furnace door.
On that $6 Spread: That isn't an arbitrage opportunity. That is the "Iron Curtain of Capital." It signifies that physical metal is trapped inside System B (China) to feed the manufacturing beast, while System A (COMEX) is trading paper ghosts. The spread exists because the arbitrage mechanism is physically broken. You cannot move the metal out. Ref https://chinarbitrageur.substack.com/p/silver-is-leaving-gold-behind-a-pricing?r=71ctq6
You called silver "Inelastic." We go further: In the ChinArb model, Silver has transitioned from a "Precious Metal" to "Industrial Oxygen." Beijing isn't hoarding wealth. It is hoarding the conductivity required to run the R.I.C.E. system. When an industrial superpower treats a metal like oxygen, $75 is cheap. $100 is just the new floor.
From owning shares in Silver Mines right here in the U.S. and Canada, know it's possible for the U.S. to increase production right here. With relaxed regulations for Mining now being undertaken, this is the option most advantageous for the U.S. to prosper.
I think both yourself and Mike of ' Parallel Mike' make excellent, clear to understand content. I especially like it when you cut through the jargon with a sort of 'less is more' approach which so many other commentators seem revell in.
Trump could easily destroy the silver market. Seeing the green agenda is a government fiat imposition ( grift ) on the free market, he could take his big, beautiful gold plated pen and sign away all environmental regulations. That would drive down this artificially inflated demand for silver. But that would be an act of desperation in order to try to save the American economy, which would only happen when the $ is kaput.
Lau, you are the only one reading the fine print. That January 1st decree wasn't policy; it was a "Thermodynamic Veto."
You nailed the choke point: 70% Refining Capacity. This is what I call "The Smelter Trap." Western investors look at maps and see silver mines in Mexico, Peru, and Australia. They think: "China doesn't own the dirt, so we are safe." Wrong. You can't plug a raw ore rock into a Solar Panel. It must be refined. And because of System A's energy inflation and environmental paralysis, the West lost the ability to smelt decades ago. China doesn't need to conquer the mine; it just needs to close the furnace door.
On that $6 Spread: That isn't an arbitrage opportunity. That is the "Iron Curtain of Capital." It signifies that physical metal is trapped inside System B (China) to feed the manufacturing beast, while System A (COMEX) is trading paper ghosts. The spread exists because the arbitrage mechanism is physically broken. You cannot move the metal out. Ref https://chinarbitrageur.substack.com/p/silver-is-leaving-gold-behind-a-pricing?r=71ctq6
You called silver "Inelastic." We go further: In the ChinArb model, Silver has transitioned from a "Precious Metal" to "Industrial Oxygen." Beijing isn't hoarding wealth. It is hoarding the conductivity required to run the R.I.C.E. system. When an industrial superpower treats a metal like oxygen, $75 is cheap. $100 is just the new floor.
Silver IS the BEST conductor of electricity. Good article; thanks for it.
From owning shares in Silver Mines right here in the U.S. and Canada, know it's possible for the U.S. to increase production right here. With relaxed regulations for Mining now being undertaken, this is the option most advantageous for the U.S. to prosper.
I think both yourself and Mike of ' Parallel Mike' make excellent, clear to understand content. I especially like it when you cut through the jargon with a sort of 'less is more' approach which so many other commentators seem revell in.
Simply stated and well presented. Leaves lots of possibilities in order to assess risk in the markets. Thank you!
Outstanding information clearly presented. Thank you.