Google AI: Why is the price of silver on the SFHE so much higher than the COMEX silver today

The massive price gap between silver on the Shanghai Futures Exchange (SHFE) and the COMEX is primarily driven by a severe physical shortage in China and new government export restrictions that took effect on January 1, 2026. While Western prices are largely dictated by “paper” futures contracts, Chinese prices reflect the immediate, high demand for physical metal needed for green technologies.

The 30 January event was all about the paper markets breaking down. They do not have the physical to back the global paper contracts. The price in China represents the price paid for actual physical silver needed by industry.

Will they shut the paper markets down soon. Drive the paper price down so they do not have to pay out to investors. Seems they already did some of that Friday. What comes next week?

Categories: Perspectives