THE INVISIBLE STRATEGY OF CHINA: Silver, Gold, Reputation and End of Dollar as Reference

[Igor Pereira]

There is a dangerous trend between retail traders to look at recent events in the Silver market as isolated incidents: the tightening in LBMA, the closing of futures in CME, JP Morgan's delivery restrictions and unusual metal flows in Asia.

By Igor Pereira

But if we look with the institutional lens, these events are not scattered. They form a coherent pattern that aligns perfectly with China's "Reputation Policy" strategy. To understand where the price of Silver goes (currently $65+ in SGE), we need to understand Why China acts as it does.

Since its entry into the WTO in 2001, China has played a patience game to integrate into the global economic system as a "disciplined" and credible participant.

• The objective: To be seen not as an external threat, but as a pillar of the system (Stakeholder).

• Marco: The inclusion of Renminbi (RMB) in the IMF Special Drawing Rights (SDR) basket in 2016 was the turning point. To achieve this, China had to prove that it had a solid balance — which explained its massive and visible purchases of Gold at the time.

For decades, the US has accused China of manipulating its currency to keep exports cheap. However, since 2019 these accusations have decreased. Why? Has China stopped manipulating? Nope. She just changed the reference.

Instead of devaluing the Yuan against the Dollar (which generates sanctions and trade wars), China began to devalue its currency against the Gold.

• Print Yuan to buy Gold is technically debasement.

• But it is a debasement against a monetary asset "neutral", not against the fiduciary currency of another nation. This protects China from accusations of "exchange war" while strengthening its reserves.

Silver's different. It is not just money; it is a critical and strategic industrial material. If China were seen accumulating Silver openly and aggressively (cornering the market), the US could classify this as a hostile or predatory act of national security.

Therefore, the Chinese strategy is the Silent Accumulation. They avoid the look of "market handlers" to preserve their reputation in the IMF and the WTO, but continue to drain the physicist behind the scenes.

While politically China avoids headlines about "squeezing the market," operational data tells the truth.

Please note the AGE/SHFE report of 12 December 2025:

• Price: The Silver Closed the $65.85 USD/oz (+3.31%).

• Physical Flow: Only in one day, the SHFE vaults saw an entrance of +40.321 kg Silver.

ExpertFX Conclusion: China did not "return" from the market. She just stopped making noise. They are happy to let the paper market of the West break by itself for lack of liquidity, while collecting every available physical ounce with a silent angio.

We're looking at a transfer of historical wealth from the West to the East, cloaked in diplomacy.

Recommendation: Ignore the volatility of paper prices (future). Follow the physical flow of Shanghai safes. The trend is undeniable.

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Understand the game behind the chart.

Igor Pereira Your ExpertFX School Financial Market Analyst