Bizarro spread on JD. with the Paper Price Collapse – Silver to $163!

Igor Pereira · February 1

Traders, the question is not if the price is going to go up, but "how long" can the West keep up the farce. The data we just extracted from China's largest e-commerce platform, JD.com, shows a total disconnection with the reality of COMEX.

While Wall Street negotiates "paper" at settlement prices, the Chinese consumer is paying astronomical prizes for real metal. The market is broken.

Below is the analysis of the spread and the answer to the question of a trillion dollars: Who will win this war?

By Igor Pereira Financial Market Analyst

The numbers are undeniable and show a bifuardo market.

Gold: In China (JD.com), investment gold bars (Shandong Gold) are being sold by ¥127.830 (100g), equivalent to ~$5.720.79/oz.
- Comparison: This is $830 above Comex's Spot price ($4,890).
Silver (Silver): The silver situation is even more explosive. 100g bars are listed by ¥ 3,650 , which translates into ~ $163.35 / oz .
- Comparison: That's... almost DOBRO (100%) on the price of COMEX ($84.93).

The answer to "how long can they last?" is simple: Until the last physical stock leaves the West.

The Mechanism: Nature abhors the price vacuum. If I can buy silver in New York at $85 and sell in Shanghai or Beijing at $163, any merchant with logistical capacity will do so massively.
The drain: This one. spread ensures that all available metal in London and New York safes is drained and shipped to Asia. Western refineries will not be able to restore the stock to $85 when the real market pays $163.
Collapse: The COMEX system breaks when they no longer have metal to deliver and are forced to declare "Bigger Force" or settle only in cash (Cash Settlement), admitting that the paper price was false.

In this arm fall between the derivatives market (Papel/USA) and the physical market (Real/China), the historical winner is always the same.

The Physical Wins: You can't print Silver. China wins because she has the metal. The West loses because it has only promises of paper.
Convergence: The price will not fall in China to find COMEX. The price of COMEX will explode (gap up) to find China. The "real price" market is $163, not $84.

We're seeing the end of real-time price manipulation.

My Vision: The nearly $80 difference/spread agitator in Silver between USA and China, is the most important sign bullish I've seen it all my career.

Do not Sell: If you sell your physical silver based on screen price ($84), you are literally donating money to arbitrators who will sell it in China for double.
Target: The Western market will have to re-enact violently upwards in the future to stop metal bleeding. $150/oz is not a dream; it is the current parity price.