China just injected trillions into its economy.
The largest liquidity injection since COVID.
Gold could surge to $10,000 and silver to $150.
This move could ignite the largest commodity squeeze of our lifetime.
Here’s why:
Look at the chart on the left (M2 Money Supply).
China is currently executing the largest monetary expansion in its history outside of the COVID crisis.
China’s M2 money supply has gone vertical, now sitting north of $48 TRILLION (USD equivalent).
For perspective, that’s more than DOUBLE the US M2 money supply.
Historically, when China injects this much liquidity, it doesn’t stay trapped in domestic equities.
It leaks into the real economy, specifically into hard assets and commodities.
They’re printing fake paper money to secure REAL resources, like gold and silver.
Now, look at the chart on the right. This is where it gets dangerous.
While the world's largest consumer of commodities (China) is printing trillions to buy hard assets…
some of the world's largest financial institutions (BofA, Citi) are reportedly sitting on MASSIVE net short positions in silver.
The estimates show a combined short position of 4.4 Billion ounces.
Global annual mine supply is only ~800 Million ounces.
These banks are effectively short 550% of the entire planet's annual production.
This is a classic macro collision course.
On one side, you have a desperate need to debase currency (China printing yuan) which naturally bids up gold and silver prices.
On the other side, you have western institutions effectively betting against a price rise with positions that physically cannot be covered.
You cannot buy 4.4 billion ounces of silver to cover your short… IT DOESN’T EVEN EXIST.
We are looking at a potential "Commodity Supercycle 2.0."
If silver prices tick up significantly, driven by Chinese industrial demand (solar/EVs) and monetary debasement, these banks will face a margin call from HELL.
A short squeeze in a market this tight doesn't just mean higher prices, it means a complete repricing of the metal.
The fiat money supply is infinite but the silver in the ground IS NOT.
In a world where central banks are racing to debase their currencies, the only winning move is owning the assets they can't print.
If you still haven’t followed me, you’ll regret it.
#Silver #GOLD #china