27/12/2025
Dear Clients
Yesterday an important news on Silver came from china.
As i already discussed that china started buying silver last month n made it rise 60% in a month now china played a game yesterday. They banned the export of silver. Now export ban means no exchanges in the world would be able to give delivery for future positions and paper silver.
Now let me explain the difference between paper silver and real silver.
Real Silver is the same block of silver that you buy in jewellery , so it is real. Whereas paper silver is ETF or digital silver or future contracts on MCX or Comex.
Generally paper silver are traded in volume greatter than silver that really exist. So its arpund 300 times more than the volume of silver present in physical.
So ideally this china move must be already known to some insiders. Now major short sellers of silver like Bank of America and JP morgan will find it difficult to give delivery of silver.
Now it will be very interesting to see whether London metal exchange or Comex will default on delivery?
Or China is raising prices by depressing supply to boost its own industrial prosperity?
Or whether China is raising prices so that it can open export later on at higher prices?
Sometimes markets give you new experiences, n thats why one should respect risk.
I have seen crude oil trading to negative value in covid and this is again a new experience when a country is conspiring and creating an unnecessary supply glut to create problems for the world.
This is a new world where currency is loosing value due to inflation and stock markets are still rising with gold?
Time to be a bit pessimistic as gold and equities can't run madly in the same direction.
Something even i would also want to see ..but with risk management because boring returns sometimes are better than exiting returns.
One strategy cant win in all market conditions. One needs to learn to adapt to change if it hints.
Regards
Ginish kapoor
