Silver Soars At Asian Open Last Night Only To Get Smashed Back Down By $9 Dollars To Levels Not Seen Since...Friday. SLV Shorts At 2 Year Highs. China Silver Export Controls Begin Jan 1st. Is Silver Signaling Another Lehman Moment In The System?

Silver was up another $5 in 15 minutes of Asian open last night by 6:15PM ET.

Then the carnage began.

That opening spike to ~$84 then rug-pull wasn’t “bubble pop,” it was a textbook liquidity vacuum.

Asia paid real money for real metal while Western paper got force-liquidated into a thin book.

The Shanghai premium widened during the smash, not narrowed—meaning physical demand overwhelmed the dip.

With export curbs days away and inventories still bleeding, price discovered scarcity for a minute, then derivatives yanked it back… temporarily.

The signal inside the noise: physical is leading, paper is stalling, and that gap tends to resolve higher.

SLV is being used as a pressure valve.

Shorts just surged to 2-yr highs while the fund flipped to a premium and borrow is still cheap—so synthetic supply is leaning on a product that’s suddenly wanted for exposure.

If physical tightness persists, creations will vacuum bars, the premium widens, and those fresh shorts become rocket fuel.

Either new metal shows up…or price does the heavy lifting.

No kidding—he nailed it.

A 10% melt-up on record volume, followed by a vacuum wick and immediate margin hikes, is a textbook liquidation event, not a healthy top.

That’s what “something broke” looks like: algos puking, dealers scrambling to re-hedge, weak hands torched—while Shanghai stayed bid.

Net takeaway: the structural squeeze narrative is intact, but the path is a chainsaw—size conservatively, keep roll plans flexible, and watch the SHFE–COMEX spread.

Shanghai kept bidding while New York tried to drown the fire with a $9 smash—and the price still clawed back $6.

That’s not hype; that’s physical scarcity overwhelming paper control.

If London opens into drained vaults and short books needing lifelines, the West’s “pricing” mechanism becomes the fuse, not the fire extinguisher—and every failed smash only telegraphs how close we are to forced re-pricing.

Until silver compresses toward ~15:1 against gold, the asymmetry is still screaming long silver:

…five-year structural deficits, inelastic by-product supply, and re-monetization pressure haven’t even truly begun to re-rate the metal.

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Luke Lovett
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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.