#比特币与黄金战争 The Silver Dilemma

This is not just a market fluctuation. When a metal surges by 8% within 24 hours, when Asian markets break through the $80 level, yet European and American derivatives markets fall into a liquidity vacuum, and when the upward trend shows almost no signs of speculative chips—what you are witnessing is no longer normal trading but an alarm signal indicating that a system is beginning to lose order.

Silver is becoming the first industrial metal in the global financial system to be forced into a corner.

**Counterintuitive Truth: Prices Soar, But Traders Disappear**

This round of rally is completely different from usual. Seeing such exaggerated gains, many would instinctively think—it's definitely hot money stirring the pot.

Quite the opposite.

Over the past two months, COMEX silver open interest has been shrinking steadily. What does this indicate? Silver is rising strongly without leverage funds fueling the move. This is not emotional hype, not retail investors battling shorts, and certainly not speculative frenzy—it's the sellers shrinking, with fewer and fewer willing to sell.

**London Gold and Silver Markets Are Struggling to Hold On**

There is an unspoken assumption in financial markets: paper contracts can always be settled somewhere. This assumption is now collapsing in silver.

London inventories are running low. New York inventories are frozen, and no one is willing to release them. On the Asian side—especially China—there is continuous absorption of physical silver.

For a long time, China has played the role of a "liquidity sponge" for global silver: physical silver flows steadily out of China to sustain the normal operation of London and New York derivatives markets.

Now, this mechanism has failed. China is no longer acting as a marginal supplier.

Once physical liquidity dries up, the derivatives market falls into a trap: using increasingly scarce real silver to back ever larger paper positions. This is the first line of defense in the "silver war."

**The True Identity of Silver: Strategic Industrial Metal**

Many investors overlook this key point. Silver is not purely a safe-haven asset; it is the lifeblood of modern industry: solar panels, electric vehicle battery systems, chip manufacturing, energy storage devices.

China is actively changing the rules of this game.