The financial markets have been buzzing wildly over the past week. Precious metals suddenly plunged—gold prices dropped $246 in a single day, and New York futures fell even more, by $268. What signals does this send?

The source of the rumors points to a major American bank. It is said that this institution has a large presence in silver derivatives, holding hundreds of millions of ounces in short positions. Silver has gained nearly 150% this year, and the exchange's margin call notices came crashing down—$2.3 billion, which needed to be covered immediately.

The problem is, they couldn't raise the funds in time. Forced liquidations began, regulators stepped in, and huge losses propagated like dominoes through the entire system. The Federal Reserve didn't hesitate and directly injected $34 billion of liquidity—this being the second intervention in just half a month, after last week's $18 billion infusion.

This bank has become the protagonist of a "too big to fail" scenario. Panic spread, and the market sold off first and asked questions later. Even gold and silver mining stocks came under pressure, with Harmoni Gold dropping over 8% and Pan American Silver falling nearly 6%.

Interestingly, there's a gap between paper precious metals and physical assets. When COMEX silver futures fell to around $75, physical silver in Shanghai was priced at $85, and Dubai was even more exaggerated, reaching $91. This spot premium is the largest in decades.

Arbitrage opportunities have thus emerged. People are starting to buy gold and silver in the US and ship them to Shanghai and Dubai to profit from the price differences. Meanwhile, inventories of precious metals in Chicago and London are shrinking continuously—European and American pricing power is being redistributed. Behind this change lies a deeper issue caused by the adjustment of liquidity structures.