Gold and Silver Price are about to crash. The U.S.-China Economic Conflict Over Precious Metals
It appears that a crash in gold and silver prices is imminent. This shift is driven by the United States—the world’s largest economy—which is actively working to lower the prices of all metals.
The Strategic Conflict
The primary driver behind this is the U.S.’s chief competitor, China, which aims to transition the global financial system from a dollar-backed economy to a metal-backed economy. China is positioned to lead this shift because it holds a near-monopoly on metal production:
Gold, Silver, and Copper: China processes 70% of the world's supply.
Rare Earth Metals: China controls 90% of global processing.
Why This Threatens the United States
U.S. economic dominance is built upon three pillars:
U.S. Treasury Bonds
U.S. Equity Markets
The Dollar’s Global Liquidity
If central banks and major financial institutions keep their capital locked in gold and silver, the demand for U.S. bonds will decline. As money flows out of equity markets to seek safety in metals, the supremacy of the dollar begins to crack. To prevent this, the U.S. requires metal prices to fall.
The Weapon of Choice: Margin Hikes
The U.S. has deployed its "tried-and-tested" financial weapon: The Margin Hike. This strategy was successfully used in 1980 and 2011 to suppress silver prices. Over the last few days, this tool has been reactivated:
December 29: The Chicago Mercantile Exchange (CME) increased margin money requirements by 25%. Within a single hour, silver prices plummeted by 12% to 15%.
December 31: Margin requirements were increased yet again.
The Current Outlook
There is a high probability that the Chicago Mercantile Exchange will continue to raise requirements until metal prices experience a full-scale crash.
Essentially, China is attempting to challenge the U.S. dollar's supremacy through metal control, while America is using every regulatory and financial lever to stop them. From now on, when you view a gold or silver price chart, you aren't just looking at market fluctuations—you are looking at a live economic war between the U.S. and China.#GOLD_UPDATE #silver
