#战略性加仓BTC Gold and silver plummeted overnight, what exactly happened in the market?

The recent market reversal has been quite sharp. Gold prices dropped $246 in a single day (approximately 1,722 RMB), and New York futures gold was even more dramatic, falling $268 (about 1,876 RMB). Precious metal mining stocks also declined across the board, with Harmony Gold down over 8% and Pan American Silver nearly 6%.

Who is dumping the market?

On the evening of December 29, a piece of news caused a stir in the market—rumor has it that a major U.S. bank holds hundreds of millions of ounces of silver short positions. Silver has already gained nearly 150% this year, and the exchange's margin call notices came: $2.3 billion must be paid immediately.

The problem is, this bank might not have the funds to cover it. This led to forced liquidations, regulatory follow-up, and a huge loss that instantly triggered alarm lights across the entire financial system.

The Federal Reserve responded by injecting $34 billion of liquidity into the market. This is the second time in half a month—just last week, they added $18 billion. This bank has directly become a "too big to fail" rescue target.

"Paper silver" and real silver, the price gap has reached historic levels

Here's the interesting part—COMEX silver futures (paper silver) prices are determined by capital battles, but the actual silver bars and ingots traded in places like Shanghai and Dubai are completely different in price.

When futures silver prices fell to around $75 per ounce, the physical silver quotes in Shanghai were $85, and in Dubai, they even surged to $91. This "spot premium" has been the largest in decades.

This presents huge arbitrage opportunities. Many people are buying gold and silver in the U.S. and shipping them to Shanghai and Dubai to sell. As inventories in Chicago and London are continuously drained, the control over global gold and silver pricing by Europe and America is quietly slipping away. $BTC $ETH investors are also watching this liquidity shift—after all, changes in macro monetary policy always tend to reveal themselves first in precious metals and derivatives markets.