Peter Schiff: CME's suspension of silver trading is 'preferable to being honest' as prices climb above $90

Global Markets Disrupted as CME Halts Metals and Natural Gas Trading

On Wednesday, international financial markets experienced a significant interruption when the CME Group temporarily suspended electronic trading for metals and natural gas. This event coincided with silver prices climbing above $90 per ounce. Peter Schiff, CEO of Euro Pacific Asset Management, questioned the timing of the halt, suggesting it casts doubt on market transparency during a period of exceptionally strong physical demand.

CME Group’s Trading Interruption Explained

The CME Group informed Kitco News that a technical malfunction on the Globex platform was responsible for the pause in trading activity.

"A technical issue led to the suspension of CME Globex Metals and Natural Gas futures and options markets at 12:15 p.m. yesterday," the CME Group reported. "Trading for natural gas resumed at 12:50 CT, while metals markets reopened at 1:45 CT. All day orders and GTDs dated yesterday were canceled, but acknowledged GTCs remained active."

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

Peter Schiff, in an interview with Kitco News, expressed skepticism about the official explanation, implying it could be concealing deeper liquidity concerns. "If there’s a serious issue, they’d rather keep it under wraps. And if the truth would push prices even higher, blaming a technical glitch is a convenient way to pause trading," Schiff remarked.

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 sweeping tax changes, including the removal of taxes on tips, overtime, and Social Security income, while suggesting that tariffs could eventually replace the federal income tax system.

Schiff warned that these measures create a significant fiscal dilemma. He argued that it’s impossible to sustain current entitlement spending while drastically reducing revenue, without risking a currency crisis.

He cautioned, "Inflation will be necessary to meet these promises." While beneficiaries may continue to receive payments, Schiff explained that printing additional money to fund these obligations would erode the real value of those benefits, diminishing purchasing power.

India’s Strategic Shift and the Move Away from Traditional Banking

As Western markets grappled with technical issues, India’s Securities and Exchange Board (SEBI) unveiled reforms that Schiff believes will accelerate the shift of precious metals price discovery to Asia.

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

Schiff highlighted that this blend of strong physical demand and digital innovation enables investors to "circumvent the traditional banking system." He argued that tokenized gold offers a safer means of exchange by eliminating the credit risks associated with bank deposits.

Schiff asked, "Why rely on banks at all?" He pointed out that with gold-backed tokens, individuals can settle transactions directly, removing the need to be a bank creditor.

Surge in Mergers and Acquisitions Among Junior Gold Miners

Schiff concluded by identifying junior gold mining companies as the next major opportunity for institutional investors. He observed that while large producers are generating record cash flows, they are depleting reserves they cannot replenish, making junior miners attractive targets in the ongoing 2026 M&A wave.

Recent deals and industry consolidation reflect this shift in valuations:

• 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, marking further consolidation among mid-tier miners.

Schiff described junior miners as being in the "sweet spot," predicting that Wall Street will be compelled to invest in the mining sector to keep up with soaring metal prices.