Silver Closes The Week at $65.85 In China - Asia Driving Silver Higher, Leveraged Longs Get Cleared Out In Friday's Price Dip But Silver Lease Rates Spiking Back Up To 9% In London Suggests Short-Term Bullish Momentum Is Still Intact

Got my tinfoil hat out this morning…

If you really look into the subject, it’s likely that the silver market is heavily manipulated to the downside.

This is not to demonize whoever is doing it.

Quite the contrary. The longer true price discovery is prevented, the higher the price must go in order to find its equilibrium.

For years, paper silver (high-leverage futures, lease/forward chains, and dealer hedging) has kept the spot signal muted while the physical side tightened.

That suppression—intentional or emergent—starved mines of capital, created chronic deficits, and built a giant coiled spring: inelastic supply + rising industrial pull + balance-sheet demand.

When the damping breaks—via delivery pressure, lease spikes, vault drawdowns, or funding stress—price doesn’t glide; it reprices.

It’s not about villains; it’s about plumbing.

And it’s why the long-term upside is so explosive: a beach ball pushed farther and farther underwater for years goes that much higher in the air when it’s finally let go.

Here’s what the chart is saying, plain and simple:

• It plots two lines: overnight silver prices (blue) and New York daytime open (red).

• The blue line jumps a lot more—most of the big gains are happening at night, when Asia/Europe are trading.

• During the U.S. day, prices mostly wiggle around and then catch up to what happened overnight.

Takeaway: the real move in silver is happening overnight, and the overall direction is up.

China’s bid appears to be in the driver’s seat.

COMEX silver closed the week ~$62.01, but Shanghai printed ~$65.85—a ~$3.8 premium that’s literally pulling metal East (another 40,321 kg added to SHFE vaults).

With ~10 trading days until China’s new silver export restrictions kick in, that premium = sustained demand + tighter Western float.

Translation: the path of least resistance for price is still up, and the squeeze pressure isn’t easing.

Yep. We tagged $65 pre-open, then a 10% margin hike hit and the tape did exactly what hikes are designed to do: force de-leveraging.

Thin overnight liquidity + higher cash required = weakest leveraged longs puked, price slid ~$3 into the close.

Big picture hasn’t changed—physical demand is relentless and open interest is still modest—so that flush looks more like paper cleanup than a trend reversal.

Spot got smacked yesterday, but 9% LBMA lease rates scream tight supply and costly shorts—not broken demand.

With EFPs narrowing, the dip looks like paper deleveraging; bullish momentum remains alive unless those rates collapse.

They’ve got it backward.

Gold didn’t “fail”—it worked so well as a fiscal brake that politicians cut the brake line and invented elastic fiat.

When discipline is inconvenient, you don’t blame the ruler; you swap it for a rubber band.

If you read about what happened right before we went off the gold standard in 1971, it was demand for gold that caused us to cut the cord - not the lack of it.

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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.