China just made it much harder to short silver unless you can prove you actually need to hedge a real physical position - new rules eliminate automatic rollovers for those short positions month to month. COMEX silver is leaving vaults at a high-velocity rate (~4M oz/day recently), with only ~101M oz registered (deliverable) left.

• COMEX silver is leaving vaults at a high-velocity rate (~4M oz/day recently), with only ~101M oz registered (deliverable) left.

  • This drawdown reflects real physical demand, not just paper trading.

• Shanghai (SHFE) and SGE are in even worse shape—down ~88% from their peaks.

  • Chinese policy is tightening futures regulations to prevent naked shorting, suggesting they view silver as systemically important and cannot afford market dislocations.

What’s happening right now on the Shanghai Futures Exchange (SHFE) is a game-changing shift in how silver futures are allowed to operate—and it’s designed to shut down the kind of market manipulation that has plagued the metals markets for decades.

In simple terms:

• China just made it much harder to short silver unless you can prove you actually need to hedge a real physical position. 

  • No more anonymous, paper-only bets flooding the market to suppress price.

• New rules eliminate automatic rollovers for those short positions month to month.

  • Now, you must reapply every month and justify your position. That slams the door on lazy, leveraged naked shorting.

For years, silver has been artificially suppressed through massive naked shorts—bets made without physical backing.

This kept the price low and distorted real-world supply and demand.

But China is now clearly saying: “No more.”

Why? Because:

• China is running critically low on silver, while being the world’s largest industrial consumer of it.

• They’re watching their inventories collapse.

Gold isn’t just a shiny metal; it’s a scoreboard.

And what it’s quietly telling the world right now is that trust in fiat currencies — especially the U.S. dollar — is cracking.

Gary Savage’s chart shows gold trying to break through a resistance level ($5115) with strength.

If it does (it may today), it’s not just a technical breakout — it signals the beginning of an accelerated revaluation of real money against a paper system stretched to its limits.

Daniel Oliver is laying out the roadmap of a three-phase gold bull market.

• Phase 1 was triggered by geopolitical distrust (Russia’s frozen reserves).

• Phase 2 will come when the market realizes the Fed is powerless — that it can’t both tame inflation and save the bond market.

• Phase 3 is the final act:

  • a death spiral of rising interest rates, exploding deficits, and a collapsing dollar.

  • The government will either default or order the Fed to buy everything, nuking the dollar in the process.

Why does this matter now?

Because $10 trillion in Treasury debt rolls over in the next 12 months — and someone has to buy it.

But foreign buyers are fleeing, private equity is on the verge of implosion, and the Fed is already losing $245 billion trying to keep the game alive.

Trump’s “each point is $600B” comment wasn’t just about rate cuts easing the deficit.

It’s an implicit admission that the U.S. can’t pay the debt — not with tax revenue, not with spending cuts.

The only option left is default-by-inflation: devalue the dollar, reprice gold and commodities, and stealth-cancel the debt through currency debasement.

Here’s the deeper truth:

• The global order is fragmenting.

  • U.S. hegemony is fading, and multipolar blocs (China, BRICS, etc.) are accelerating away from dollar reliance.

• Sovereign debt globally is already past the point of repayment.

  • The U.S. just happens to be the best house in a collapsing neighborhood — for now.

• Before we lose reserve currency status, we still have the privilege of issuing debt in dollars and setting the rules.

  • Trump (or anyone in that seat) knows this moment must be exploited: slash rates, stack commodities, reflate domestic industry, ramp military spending, and defend against the future damage with exponentially greater resources and increased military strength.

Gold is the endgame. Not because it’s shiny, but because it’s neutral collateral in a world where trust in credit is dying.

Revaluing gold to, say, $147,000/oz (or whatever number) wipes out debt without overtly defaulting — it's a monetary reset in disguise.

So Trump’s logic — “forget the debt, just cut rates” — isn’t economic ignorance.

It’s brutal realism. You can’t save the system and the currency.

You have to choose. And if war and real assets are on the horizon, then preserving productive capacity and sovereignty matters more than preserving a dying fiat illusion.

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Luke Lovett
Cell: 704.497.7324
Undervalued Assets | Sovereign Signal
Email: [email protected]

Disclaimer:
This content is for educational purposes only—not financial, legal, tax, or investment advice. I’m not a licensed advisor, and nothing herein should be relied upon to make investment decisions. Markets change fast. While accuracy is the goal, no guarantees are made. Past performance ≠ future results. Some insights paraphrase third-party experts for commentary—without endorsement or affiliation. Always do your own research and consult a licensed professional before investing. I do not sell metals, process transactions, or hold funds. All orders go directly through licensed dealers.