Garcia pointed to January 1st, when China implemented a new export licensing regime that effectively gives Beijing control over the majority of refined silver leaving the country. He noted that 60 to 70 percent of the globally traded refined silver supply now requires Chinese permission to be exported. In his view, that shift alone changes the strategic landscape.

At the same time, he argued that the silver market has not reflected normal supply and demand for years due to heavy paper trading and manipulation. When the CME raises margin requirements and paper contracts multiply, the visible price can disconnect from physical scarcity. But Garcia believes that the disconnect cannot last forever.

He emphasized that silver is no longer just a precious metal. It is a strategic asset used in weapons systems, electric vehicles, solar panels, AI data centers, and 5G infrastructure. As silver becomes embedded in national security and industrial policy, he expects the tension between paper and physical markets to intensify.

Silver, Strategy, and a Structural Deficit. “Money Metals podcast, host Mike Maharrey sat down with Charlie Garcia, founder of R360, decorated veteran, former advisor to six presidents, and regular MarketWatch columnist, to unpack what he sees as a historic turning point in the silver market.”