The truth behind the big dump of gold and silver!

Author of "Currency Wars" Song Hongbing's perspective:

1. Gold and silver, due to their safe-haven properties and industrial demand, have a long-term upward trend that remains unchanged.

2. This fall is a carefully planned short selling activity by the market to save the liquidity crisis in the London spot market.

Judgment basis: Abnormal conditions in the silver market

1. The spot silver price in London is $2.5/ounce higher than the futures price in New York, which is historically rare; normally, the futures price is higher than the spot price.

2. The interest rates in the silver leasing market have soared to 39%.

Both data indicators point to a shortage of physical silver in the London market!

The root cause of the silver squeeze is the "unallocated account" system established by the London Market Association in 1987, which changed from 100% reserve to fractional reserve.

However, if there is no central bank in the gold and silver market, a run on the bank could lead to a collapse!

The futures market in New York is built upon the foundation of the spot market in London.

Therefore, the major market makers in New York have chosen the method of "shorting the futures market + transferring silver spot to London" to change market expectations.

However, this deliberate short selling, which goes against the market supply and demand relationship, is unlikely to cause a real bear market.

The world's reserve currency, from the Netherlands to Spain to the UK, has a cycle of about 100 years, and the United States is no exception.

The dollar hegemony has been gradually collapsing since the establishment of the "Bretton Woods System" in 1944, over 80 years ago:

-In 2008, gold first broke through 1000 USD/ounce.

-In 2020, gold first broke through $2000 per ounce.

-In March 2025, gold first broke through 3000 USD/oz.

-In October 2025, gold broke through 4000 USD/oz, reaching a high of 4400 USD/oz.

And gold, as a value currency, is rising faster and faster!!

Gold and silver are not separated; silver not only has financial investment but also has a large demand in industries such as chips and photovoltaics, and has been in a state of shortage for the past 5 years.

The supply and demand relationship of gold and silver determines their prices, which are expected to rise in the long term over the next 20 years.