COMEX under fire: Is a silver short-squeeze imminent as markets brace for ‘Rule 589’ chaos?
By finnheartley // 2025-04-14
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  • COMEX faces potential default due to naked shorting and price suppression, with experts predicting a violent price surge, possibly triggered by Rule 589, allowing $15 daily gains for 10 days.
  • Silver remains stagnant (~$32.33) despite gold’s rise, with a 100:1 gold-to-silver ratio suggesting extreme undervaluation—potentially a deliberate setup for a future revaluation.
  • The obscure COMEX rule could spark a historic short squeeze, while physical demand tightens, raising risks of a force majeure event and overnight price spikes.
  • U.S.-China trade tensions (145% tariffs), potential asset seizures, and a possible dollar reset tied to gold could destabilize markets, driving investors to precious metals.
  • Experts urge holding physical silver as "economic body armor," anticipating a COMEX liquidity crisis or geopolitical shock to trigger a historic price surge.
The COMEX silver market is teetering on the edge of a potential default as traders warn of unprecedented naked shorting and price suppression. Experts predict a violent surge in silver prices, possibly triggered by "Rule 589" — a mechanism allowing silver to rise $15 per day for 10 consecutive days—while geopolitical tensions and tariff disruptions threaten to ignite a liquidity crisis. In an explosive interview with Mike Adams of Brighton.com, John Perez, a seasoned precious metals trader and founder of Silver is Money, revealed alarming insights into the looming silver squeeze, government interventions, and the possibility of a COMEX collapse.

The Silver Spring: A Market Primed for Explosion

Despite gold’s meteoric rise — hitting 3,240 per ounce — silver has remained stagnant,trading around 32.33, a level Perez calls "artificially suppressed." "Silver is like a slingshot pulled back but not yet released," Perez said. "The spring is wound up, and when it snaps, the move will be violent." The gold-to-silver ratio has ballooned to 100:1, a historically extreme level that suggests silver is severely undervalued. Perez believes this is no accident but a deliberate government operation to accumulate silver before a dramatic revaluation. "Trump himself called silver the most undervalued asset on the planet in 2017," Perez noted. "This isn’t a coincidence—it’s a setup."

Rule 589: The Hidden Catalyst for a Silver Surge

Buried in COMEX regulations is Rule 589, a little-known circuit breaker that permits silver to rise 15 per day for 10 straight days — potentially adding 150 to the price in less than two weeks. "This rule is designed to prevent market chaos, but it could also trigger a short squeeze of historic proportions," Perez warned. The COMEX and LBMA (London Bullion Market Association) have long been accused of naked shorting, flooding the market with paper contracts to suppress prices. But with physical demand soaring and deliveries tightening, Perez predicts a force majeure event—where the exchange fails to deliver metal, forcing a price reset. "The short positions are unsustainable. When the dam breaks, silver could skyrocket overnight."

Geopolitical Wildcards: Tariffs, Treasuries, and Taiwan

The U.S.-China trade war is another critical factor. Trump’s recent 145% tariffs on Chinese goods could escalate, disrupting supply chains and accelerating dollar devaluation. "China won’t back down," Perez said. "If they retaliate by seizing U.S. assets—like McDonald’s or Nike factories—it could crash the stock market and send investors fleeing to gold and silver." Meanwhile, Russia’s gold-backed ruble playbook may be Trump’s blueprint. Perez speculates that the U.S. could reset the dollar by pegging it to gold, mirroring Putin’s strategy after Western sanctions. "Trump is pushing for lower rates and even wants to fire Jay Powell. He’s setting the stage for a monetary reset."

The COMEX Default Scenario

Perez warns that COMEX could face a liquidity crisis, similar to Silicon Valley Bank’s collapse, where silver premiums spiked to $12 over spot. "If banks shorting silver get margin-called, they’ll be forced to cover, sending prices parabolic." He also highlights platinum as a sleeper asset—five times rarer than gold but trading at $950/oz, half its 2006 peak. "Platinum hasn’t moved in five years. When it breaks, it could be explosive."

The Bottom Line: Physical Silver as "Economic Body Armor"

Both Adams and Perez agree: Physical silver is the ultimate hedge. "This is your life jacket," Perez emphasized. "Buy it, bury it, and forget the price. When the system cracks, you’ll be glad you did." With gold and silver already the top-performing assets of 2024, the stage is set for a historic run. Whether triggered by Rule 589, COMEX default, or geopolitical chaos, one thing is clear: The silver squeeze is coming—and it could rewrite the financial playbook. Watch the full episode of the "Health Ranger Report" with Mike Adams, the Health Ranger, and John Perez as they talk about the imminent surge in silver prices. This video is from the Health Ranger Report channel on Brighteon.com.

More related stories:

The SilverSqueeze2.0 movement: A rally of hope or another false dawn? Silver’s breakout: Is the long-awaited bull market finally here? South Korean banks halt silver bar sales amid global and domestic uncertainty Sources include: Brighteon.com RealJohnFPerez.com
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