Peter Schiff: CME’s suspension of silver trading is ‘preferable to revealing the truth’ as prices climb above $90

Global Markets Disrupted as CME Halts Metals and Natural Gas Trading

On Wednesday, a significant interruption hit global financial markets when the CME Group suspended electronic trading for metals and natural gas. This pause coincided with silver prices climbing above $90 per ounce, raising concerns about market transparency. Peter Schiff, CEO of Euro Pacific Asset Management, questioned the timing of the halt, especially given the strong underlying demand for physical metals.

CME Group’s Trading Interruption Explained

The CME Group attributed the suspension to a technical malfunction on its Globex platform, according to a statement shared with Kitco News.

"A technical issue led us to halt trading for metals and natural gas futures and options on CME Globex at 12:15 p.m. yesterday," the company reported. "Natural gas markets resumed at 12:50 CT, while metals trading restarted at 1:45 CT. All day orders and GTDs dated yesterday were canceled, but GTCs that had been acknowledged remained active."

This disruption occurred just before the first notice day for March silver, during which silver prices briefly exceeded $91 per ounce.

Schiff expressed skepticism about the official explanation in an interview, suggesting that the technical issue might be concealing deeper liquidity challenges. "If there’s a serious problem, they’d rather keep it quiet. And if the truth would push prices even higher, citing a technical glitch is a convenient reason to halt trading," he said.

Analyzing the 2026 State of the Union: Fiscal Challenges Ahead

Schiff also commented on President Donald Trump’s 2026 State of the Union address, which introduced the One Big Beautiful Bill Act (OBBBA). This legislation proposes eliminating taxes on tips, overtime, and Social Security income, and suggests replacing federal income tax with tariff revenues.

Schiff warned that these measures present a fundamental fiscal dilemma. He argued that it’s impossible to sustain current entitlement programs while reducing tax revenue, without risking a currency crisis.

"To keep these promises, inflation will be necessary," Schiff cautioned. He explained that although beneficiaries may continue receiving payments, the government would erode the real value of those benefits by printing more money, ultimately diminishing purchasing power.

India’s Strategic Shift and the Rise of Tokenized Gold

While Western markets grappled with technical setbacks, India’s Securities and Exchange Board (SEBI) announced major changes that Schiff believes will shift precious metals price discovery toward the East.

Starting April 1, 2026, Indian mutual funds and ETFs will stop using the London Bullion Market Association (LBMA) AM price for valuations, switching instead to local spot prices. Additionally, new SEBI regulations will allow active equity funds—worth around $385 billion—to invest up to 35% of their assets in gold and silver instruments.

Schiff sees this as a pivotal moment, enabling investors to "bypass the traditional banking system." He argues that tokenized gold offers a safer alternative to bank deposits by eliminating credit risk.

"Why rely on banks?" Schiff asked, pointing out that with gold-backed tokens, individuals can settle transactions directly and no longer serve as creditors to banks.

Junior Gold Miners: The Next M&A Hotspot

Schiff concluded by highlighting junior gold mining companies as the next major opportunity for institutional investors. He noted that while large mining firms are generating record cash flows, they are depleting reserves they cannot easily replace, making junior miners attractive acquisition targets as merger activity accelerates in 2026.

Recent deals and ongoing consolidation reflect this trend:

• Zijin Mining initiated a $4.05 billion bid for Allied Gold Corp. in January 2026.
• The merger between Coeur Mining and New Gold is expected to finalize in the first half of 2026.
• Aura Minerals completed two significant acquisitions entering 2026.
• Robex Resources and Predictive Discovery recently merged, signaling further consolidation among mid-tier miners.

"Junior miners are in the sweet spot," Schiff remarked, predicting that Wall Street will have to pursue mining stocks to keep up with soaring metal prices.