📊 Historical event: Silver records an unprecedented record
For the first time in modern financial history, silver has breached the $100 per ounce barrier in January 2026, achieving an astonishing jump of 40% since the beginning of 2026 and 147% during the year 2025 alone.
But this official number does not tell the true story
⚠️ The real crisis: the separation of the paper price from the actual price
The terrifying gap between the two markets
What is happening now is a structural collapse in the global silver market. The paper price announced on exchanges like COMEX no longer reflects the true price of physical silver. Here are the shocking numbers by geographical region:
The United States → 100 dollars per ounce
🇯🇵 Japan → 145 dollars per ounce
🇨🇳 China → 140 dollars per ounce
🇦🇪 UAE → 165 dollars per ounce
The gap ranges between 45% and 180% depending on the region, which is an unprecedented number historically in any sound commodity market.
🔍 : Why did the arbitrage mechanism collapse?
In a normal market: arbitrage closes the gap immediately
When there is a price difference between two markets for the same asset, smart traders engage in arbitrage:
- Buy from the cheaper market (paper) → Sell in the more expensive market (physical)
- This raises the paper price and lowers the actual price until they match.
Why isn't this happening now? 🚫
The answer: because the paper market is deliberately suppressed by major banks dealing in metals. Here’s the hidden mechanism:
1. Major banks have massive net short positions
- Banks like JPMorgan and others sold paper silver contracts far exceeding what they actually possess by hundreds of times.
2. Repricing to 130-150 dollars = catastrophe
- If the paper price rises to match the actual price, Mark-to-Market losses on these short positions will be astronomical.
- Tier 1 capital of major banks will collapse immediately, indicating potential bankruptcy.
3. Banks are no longer trading but trying to stay alive
- Now major banks are printing additional paper contracts to artificially suppress the paper price, to avoid triggering the physical delivery condition.
🔥 Delivery pressure is the ticking time bomb
What is happening on the ground?
- Investors are withdrawing physical silver from COMEX warehouses at record rates.
- Registered inventory is sharply declining.
- Banks respond by printing more paper contracts instead of delivering physical silver.
The inevitable outcome: 💥
When a sufficient number of investors request physical delivery, and banks do not have enough silver:
- The paper price is fading (because it's just a number on a screen).
- The actual price jumps vertically to its true value (130-200+ dollars).
- Complete collapse of the paper market + cascading bank bankruptcies.
🌍 Evidence from global markets: China, Japan, and the UAE
🇨🇳 China: 140 dollars and massive silver withdrawals
- The actual price in China surpassed 103.98 dollars on January 22, 2026, and is currently reaching 140 dollars in some trading areas.
- Chinese investors are withdrawing physical silver from international exchanges in massive quantities.
🇯🇵 Japan: 130-145 dollars and liquidity crisis
- In Tokyo, the actual price reached 130-145 dollars.
- Reports indicate a severe shortage of physical silver in Japanese markets.
🇦🇪 UAE: 165 dollars per ounce
- The highest recorded actual price so far, with a 132% gap from the paper price.
- Evidence of a collapse of trust in paper contracts in the Middle East.
📉 The catastrophic scenario: What if silver officially reaches 130 dollars?
Impact on major banks:
1. Immediate Mark-to-Market losses:
- If the price rises from 71 to 130 dollars, every short sale contract will lose 59 dollars/ounce.
- With the current short positions (hundreds of millions of ounces), losses will be in the hundreds of billions of dollars.
2. Capital collapse:
- Banks are obliged to maintain a certain capital ratio to cover risks.
- Huge losses will push capital below the minimum → technical bankruptcy.
3. The domino effect:
- The bankruptcy of one major bank will lead to a global liquidity crisis (remember the collapse of Bear Stearns and Lehman Brothers in 2008).
🧐 Is this just manipulation? No, it's a struggle for survival
Many believe that the suppression of the silver price is just manipulation for profit. The truth is deeper:
Major banks are no longer trying to profit but are trying to avoid collective bankruptcy.
- The ongoing suppression of the paper price is a survival mechanism.
- Every new paper contract they print delays the explosion but makes it bigger when it occurs.
🎯 What should you do now?
For investors:
1. Focus on physical silver, not paper:
- Buy silver coins, bars, or store in a private warehouse (not COMEX).
- Avoid paper ETF funds (like SLV) that are not fully backed.
2. Monitor delivery notices at COMEX:
- Any sudden jump = beginning of the collapse.
3. Diversify the portfolio:
- Don't put all your money in silver, but silver should be part of your strategy as protection against the collapse of the financial system.
For observers:
- Follow news from independent sources, not mainstream financial media (which often lags or hides the truth).
- Pay attention to any news about trading suspensions or delivery restrictions at COMEX - this is a red flag.
📢 Summary: We are at a critical historical juncture
What is happening now is not just a normal price rise. This:
✅ Structural collapse in the largest commodity market in the world
✅ Complete separation between the paper and actual price
✅ A ticking time bomb threatens the global banking system
✅ Delivery pressure may explode at any moment
🔔 Follow the updates
- Silver has broken 100 dollars. ✅
- The actual price reached 165 dollars in some markets. ✅
- The gap between paper and actual reaches 132%. ✅
- Delivery pressure is escalating. ✅
The next phase: either mandatory repricing, or the complete collapse of the paper market.
#Silver #news #TrendingTopic #Write2Earn
