Inside the Midnight Silver Coordination: How Global Finance Tried to Cap Silver at $75

Overview

On the early morning of December 24th, a covert 47‑minute conference call was held by six of the most powerful figures in global finance. Their goal: prevent silver from breaking the $75 per ounce level, a price point that could trigger a systemic collapse in the derivatives market.

Participants

• JP Morgan – Global head of commodities
• HSBC – Head of derivatives trading
• CME Group – CEO
• U.S. Treasury – Senior official
• Bank for International Settlements (BIS) – Representative
• London Bullion Market Association – Chairman

Why $75 Is Critical

• 41,000 call options expire in January 2026 with a $75 strike price, representing about 25 million ounces of exposure.
• If silver stays above $75 for more than 48 hours, delta‑hedging requirements explode to roughly 200 million ounces.
• The COMEX inventory holds only 24.8 million ounces, far short of the required amount.
• The shortfall would force banks to buy physical silver that simply does not exist, risking a market‑wide “death spiral.”

Mechanics of the Threat

1. Current Position: Banks are short a large portion of the $75 calls; JP Morgan alone is short ~35 %.
2. Delta Hedging: At $71.69 the banks are comfortably hedged, but crossing $75 pushes the delta to ~80 %, demanding an immediate purchase of ~70‑72 million ounces.
3. Physical Shortage:
4. COMEX: 24.8 M oz
5. London market: restricting withdrawals
6. ETFs: frozen
7. Global deficit: ~1.1 billion ounces
8. Result: If the required metal cannot be sourced, the price could gap to $80, $85, or even $100.

The Secret Call (1:34 a.m. ET)

• CME CEO opened: silver had been pushed to $70.16, then rebounded to $71.69; only $3.31 away from the dangerous $75 strike.
• JP Morgan warned of a potential $500 million loss in 24 hours if the price breached $75.
• U.S. Treasury official expressed that a $100 silver price would be a “macro threat” to the dollar and pledged “legal‑parameter” support for stabilization.
• Agreement (the “gentleman’s deal”):
• Coordinated selling to keep price at or below $75.
• Political pressure on ETFs to halt buying.
• Unlimited dollar liquidity from the BIS for any bank in trouble.
• The call ended at 2:21 a.m., and a source confirmed the agreed ceiling: $75.

Evidence of Market Manipulation (Dec 24‑25)

• Silver briefly hit $72.75 before a “midnight attack” dumped the price to $70.16.
• Physical buyers stepped in, pushing the price back to $71.69 by the 1 p.m. close.
• The rapid sell‑off and rebound suggest a failed coordinated attempt to enforce the cap.

Media Narrative Strategy

• Anticipated coordinated media blitz on Friday (Dec 26) to label the rally as “overbought” and urge profit‑taking.
• Goal: convince retail investors that silver is stagnant, prompting them to sell physical holdings, which banks need to cover their naked shorts.

Why the Cap Is Doomed to Fail

• Physical scarcity cannot be manufactured; the 1.1 billion‑ounce deficit is real.
• Chinese refineries are buying physical silver at $80+ due to the shortage, draining paper markets.
• Prisoner’s dilemma among banks: each is short and losing money; the moment price nudges above $75, the first bank to cover will force the others into bankruptcy, breaking the agreement.
• Greed and self‑preservation will override the gentleman’s pact.

What Investors Should Do

• Physical silver owners: Hold; the paper cap does not affect physical holdings.
• Paper traders: Expect aggressive defending of $74.80–$75; watch for stop‑hunt volatility.
• Potential buyers: If you do not own silver yet, you have roughly 48 hours before the likely breakout; consider entering before the cap collapses.

Outlook (Next 48 Hours)

• Friday, Dec 26: Expect massive selling if price approaches $74.80.
• Any daily candle closing above $75 could trigger the forced purchase of 70 M+ ounces, causing a rapid price spike to $80‑$100.
• The coordinated “paper wall” will likely crumble under physical market pressure.

Bottom Line

The midnight conference was a genuine attempt by the world’s top financial institutions to engineer a $75 silver ceiling. Their calculations were sound, but the physical shortage, external demand (especially from China), and the inherent conflict of interest among the banks make the cap unsustainable. The market is poised for a breakout that could push silver well beyond $75, rewarding those who hold physical metal and penalizing those who sell into the engineered dip.

The secret midnight pact to cap silver at $75 reveals how powerful banks can temporarily manipulate paper markets, but the immutable physical shortage and competing self‑interest ensure the ceiling will eventually break, likely sending silver to $100 or higher.