Posted on 08/26/2024 9:31:39 PM PDT by delta7
China hoarding silver, price 10% higher than West. Secret weapon or economic warfare?
A Hidden War for Economic Dominance While the world has been focused on the geopolitical tensions between China and the West, a more subtle battle has been unfolding in the global financial markets. China, through a series of calculated moves, has been quietly accumulating vast quantities of gold and silver. This move has signaled a potential shift in the global economic landscape and highlights the developing countries’ need for exorbitant amounts of resources. Silver: China's Secret Weapon
In addition to its gold hoarding, China has also been strategically increasing its silver reserves. The Shanghai Metals Exchange has seen a significant surge in silver trading volume, with prices consistently higher than those on Western exchanges. This suggests that China may be deliberately driving up the price of silver to drain the West's resources.
In 2023, China reportedly had a silver reserve of 71,000 metric tons, second only two the silver-producing powerhouse country of Peru, which boasted 98,000 MT in reserve. The U.S. came seventh on the list of top silver reserves, with a stockpile with 23,000 MT, behind Poland (65,000 MT), Russia (45,000 MT), Australia (27,000 MT) and Chile (26,000 MT).
Silver price in China as of today: 32.77 USD/Oz
The Implications for the West The rising price of silver could have significant implications for Western economies, particularly those that rely heavily on industrial metals. If the price of silver continues to rise, it could increase production costs for a wide range of industries, from electronics to solar panels. This could lead to higher consumer prices and a further slowdown of economic growth as China out produces the West in electronics and solar panels. The Growing Demand for Silver
China is leading the way in solar production, to the point a recent Bloomberg article claimed they are producing more panels than can be put to use. Bloomberg reported in May that China’s silver imports reached a three-year high of 390 tons in December and 340 tons in April. The monthly five-year average is 310 tons.
Reports have shown China has produced so many solar panels that some Chinese citizens have put them to use as garden fences. About 80% of all panels made in the world originate from China. China's importing appetite Silver imports are notably increasing under Chinese President Xi Jinping and, most recently, have spiked in June and July, with both months surpassing net imports of more than 400 tonnes. Last year at this time, the net importing of silver into China did not surpass 200 tonnes. U.S. President Joe Biden and his administration slammed China’s trade practices in a memo released in May, claiming its over manufacturing of solar equipment is harming the West. Stay updated with the latest news! Subscribe to The Jerusalem Post Newsletter Subscribe Now “The U.S. Trade Representative, the Department of Energy and the Department of Commerce will closely monitor import patterns to ensure the U.S. market does not become oversaturated and will explore all available measures to take action against unfair practices,” the memo states. India's Growing Demand India has also been a major buyer of silver, importing significant quantities from the West in recent years. India's recent decision to reduce its import duty on silver will further increase its demand for the metal. The Potential for a Silver Squeeze Analysts warn that the growing demand for silver, coupled with limited supply, could lead to a "silver squeeze" similar to the silver squeeze of 1980. If investors begin to panic and rush to buy silver, the price could skyrocket, causing significant disruptions to the global economy.
Good to see the Western price fixing coming to and end. Got Silver?
So it is the same with deficit spending.
Most middle-class Chinese also kept their wealth in the form of urban housing/apartments
Xi Jinping has realized the property bubble could not go on forever, it was causing problems for non home-owners, hurting family formation, and contributing to local government corruption. As a matter of policy, the Chinese Govt has been steadily deflating property.
Thus Chinese citizens themselves have been looking for other investment products - and gold/silver are an obvious choice
Wow…. Poland has 65K metric tons of silver reserves? Who knew!
And, possibly of more interest, what do the Poles know that we don’t know?
I should have listened to those Buy Gold and Silver commercials.
Mexico is a top silver producer - the left wing female dingbat newly elected President is holding discussions and a vote in another month to shut down their strip mines, most of which produce silver.
Silver has been in a three year deficit, …easy to see where this goes…..got Silver?
(From the article) :" ..In addition to its gold hoarding, China has also been strategically increasing its silver reserves.
The Shanghai Metals Exchange has seen a significant surge in silver trading volume, with prices consistently higher than those on Western exchanges.
This suggests that China may be deliberately driving up the price of silver to drain the West's resources."
"In 2023, China reportedly had a silver reserve of 71,000 metric tons, second only two the silver-producing powerhouse country of Peru, which boasted 98,000 MT in reserve.
The U.S. came seventh on the list of top silver reserves, with a stockpile with 23,000 MT, behind Poland (65,000 MT),
Russia (45,000 MT), Australia (27,000 MT) and Chile (26,000 MT).
"Silver price in China as of today: 32.77 USD/Oz "
"The Implications for the West The rising price of silver could have significant implications for Western economies, particularly those that rely heavily on industrial metals.
If the price of silver continues to rise, it could increase production costs for a wide range of industries, from electronics to solar panels.
This could lead to higher consumer prices and a further slowdown of economic growth
as China out produces the West in electronics and solar panels."
"The Growing Demand for Silver"
"China is leading the way in solar production, to the point a recent Bloomberg article claimed they are producing more panels than can be put to use.
Bloomberg reported in May that China’s silver imports reached a three-year high of 390 tons in December and 340 tons in April.
The monthly five-year average is 310 tons. "
" The West’s Comex and LBMA is being drained, it is called Arbitrage.
Big money buys Western silver contracts cheap, then sell to China for profit-
They are draining our reserves and making money."
Let us review:
Back when gold and silver were used as currency the ratio was 20 to 1 silver to gold.
Today the ratio stands at 600 to 1.
until recently, the ratio had been bobbling around 40:1 going back to roman times.
roman soldiers would make 1 gold coin per week which would support their family for the week.
that gold coin would turn into 40 silver... which is where the 40 hr work week came from
On another note about buying Silver. Gold is getting to expensive for the average guy to buy, ( wait till it hits $3,000, $5,000 the next stop).
Everyone can afford junk silver. I had ( more than once) gone to our local Farmers Market with a one ounce Mexican Silver Onza, Libertab. Many Mexican shop owners…I filled a bag with about $40 in food…..preparing to pay I pulled out a Mexican Libertab, his eyes pooped wide open and I asked what will he give me in food for the Libertab?
I walked out with about $70 in food.
Note: the older Libertabs ( 1982-1996?) are more sought after the modern design. Either will work as the Mexican Mint produces a fraction compared to US silver Eagles.
Recently, I talked to my local gas station owner, he is Indian. I floated the idea of trading 2 Silver dimes ( one pre-65 dime is worth $2.10) for a gallon of gas ( a well known phenomenon where two silver dimes will buy a gallon of gas since the 1950’s)….he said yes….point?
Start lining up your “ suppliers “, start buying 90 percent junk , dimes, quarters , halves….the premiums on junk are currently very low, 4 percent, varies with dealers…..then start doing business with those that will take silver ( not USD’s) for food, gas, etc.
Lastly, do realize the paper USD has entered the phase that all paper currencies have always attained. Going from Worth Less every year, to eventually becoming Worthless.
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