Silver Triple Digits in China Regardless of COMEX Price Glitch

Bullion Market Update - February 2026: Gold, Silver, and Emerging Market Dynamics

Key Concepts:

• Bull Market: A period of sustained price increases in a financial market.
• Spot Price: The current market price for immediate delivery of a commodity.
• Fiat Currency: Government-issued currency not backed by a physical commodity.
• LBMA: London Bullion Market Association, a key benchmark for precious metal pricing.
• CME Comex: Commodity Exchange, a major futures and options market for metals.
• Supercycle: A long-term economic cycle characterized by sustained periods of growth and decline.
• Fibonacci Retracement: A technical analysis tool used to identify potential support and resistance levels.
• Dollarization/De-dollarization: The process of adopting or moving away from the US dollar as a reserve currency.

I. Precious Metal Performance – February 2026

Gold demonstrated significant strength in February 2026, achieving its seventh consecutive month of positive price appreciation. This streak hasn’t been seen since 1973. Despite a substantial sell-off in silver during the month, it still closed up in US dollar terms for the 10th month in a row – a record-breaking run. Silver trading in China already surpassed 100 yuan per ounce when converted to US dollars, driven by local price premiums. Palladium and platinum bullion prices in China were also significantly higher (multiple troy ounces) than Western spot prices. Shanghai Gold Exchange silver premiums increased to approximately 15% above Western prices. A total of 24.59 million ounces of silver bullion (15 kilo bars) flowed out of the Shanghai Gold Exchange and Shanghai Futures Exchange this past week. Spot prices at the end of the week were $93.79 for silver and $5,279 for gold, with the gold-silver ratio at 56.

II. India’s Growing Influence in Precious Metals

India is emerging as a major force in the gold and silver markets. The Securities and Exchange Board of India (SEBI) will allow actively managed equity funds to invest a larger portion of their capital in the precious metal sector, potentially channeling billions of dollars into gold and silver. In January 2026, Indian investors allocated more funds to gold ETFs than to stock funds overall. Furthermore, India will discontinue using London/LBMA price data for precious metals starting in April 2026, signaling a move towards localized pricing mechanisms.

According to Manishia Gupta of CNBC TV18, speaking with the head of the World Gold Council, gold has gained 80-120% in the last year, depending on the market and currency. Factors driving this growth include geopolitics, central bank buying, tariffs, and currency alignment. JP Morgan and UBS are predicting gold could reach $6,600 per ounce this year.

III. Expert Perspectives on Gold’s Trajectory

The head of the World Gold Council identified six to seven key reasons for continued gold price increases:

1. Geopolitical Instability: Ongoing global conflicts and tensions.
2. Macroeconomic Factors: Supportive interest rates and dollar dynamics.
3. Central Bank Buying: Consistent purchases of around 1,000 tons annually.
4. Chinese Deregulation: Opening the insurance industry to gold investment (a $5 trillion market).
5. Indian ETF Growth: Increasing popularity of gold ETFs, particularly among younger investors (25 new ETFs launched in India last year).
6. Japanese Generational Wealth Transfer: Younger generations inheriting wealth and seeking safe havens like gold due to inflation and geopolitical concerns.
7. Fear of Runaway Debt: A fundamental driver, highlighted by a perceived intervention by the US Treasury in April 2025 to prevent a debt financing crisis.

He emphasized that the underlying driver of the gold rally is a fear of unsustainable debt levels.

IV. Western Institutional Investment & Market Manipulation Concerns

Bank of America data indicates that Western institutional investors are on track to surpass last year’s $101 billion in net long gold inflows. However, this investment remains relatively small compared to capital allocated to bonds, cash, and equities. Google Trends data shows increasing public interest in buying gold and silver bullion.

A technical glitch on the CME Comex silver futures exchange disrupted price feeds for approximately 90 minutes, potentially benefiting short sellers. This incident, reminiscent of the 2015 Thanksgiving silver price meltdown, has further eroded trust in Western commodity markets and reinforces India and China’s push for localized pricing. The glitch allowed for the cancellation of 159 million ounces of notional trading blocks, potentially saving losing parties hundreds of millions of dollars. Over 1,000 cynical responses were received by the CME Group following their announcement of the glitch.

V. Supercycle Dynamics & Future Outlook

Jeff Curry, former head of commodities at Goldman Sachs, discussed the current bullion bull market on the Macro Voices podcast. He described the current market as a volatile “supercycle” characterized by price spikes followed by corrections. He noted that demand often exceeds supply, leading to price surges, followed by demand collapse and price declines, creating a cyclical pattern. He highlighted the dual drivers of demand: hedging against currency debasement and central bank de-dollarization. He believes the metal space is significantly undervalued, with a market cap of only $200 billion.

Curry specifically noted silver as a “turbocharged version of gold,” benefiting from its crucial role in electrification technologies like solar panels. He referenced a potential price target of 170 for silver, citing the expertise of long-time market analyst Michael Wner.

Tabby Kosa’s chart illustrates the historical relationship between gold’s above-ground value and the world’s total stock market value, suggesting significant potential for further gold price appreciation as the bull market progresses. The chart shows that gold’s value has historically approached parity with the world’s stock markets during bull market cycles.

VI. SD Bullion Promotion

The video includes a promotional segment for SD Bullion, highlighting their competitive pricing, fast shipping, secure storage options, and exclusive Scottsdale Mint Eagle Stacker Silver rounds.

Conclusion:

The February 2026 bullion market update reveals a strong bullish trend for both gold and silver, driven by geopolitical factors, central bank demand, emerging market investment (particularly in India and China), and a growing fear of debt sustainability. Concerns regarding market manipulation in Western commodity exchanges are prompting a shift towards localized pricing mechanisms. Experts predict continued price appreciation, with potential for significant gains in the coming years, particularly as the market enters a supercycle characterized by volatile price swings and increasing demand. The overall sentiment is overwhelmingly positive for precious metals, positioning them as key assets in a rapidly changing global economic landscape.