Peter Schiff: Silver breaks $90, CME Group halts trading; technical malfunction is just an excuse.
2026-02-28 02:12:19
Amidst persistently high global demand for physical precious metals, silver prices have seen a breakthrough surge. Against this backdrop, as silver prices approached the crucial $90 per ounce mark, the CME Group abruptly suspended electronic trading of metals and natural gas products on Wednesday, triggering turmoil in international financial markets. Peter Schiff, CEO of EuroPacific Asset Management, stated that the timing of the suspension was suspicious, the explanation of a technical malfunction was unconvincing, and the fairness of the market was questionable.
CME Group halts trading: Technical malfunction raised questions
The CME Group issued an official statement saying that a technical glitch occurred on its global electronic trading platform (Globex), causing the trading halt. At 12:15 PM Central Time on February 25, 2026, CME Group suspended trading in metals and natural gas futures and options on the platform. Trading in natural gas resumed at 12:50 PM, while metals trading did not resume until 1:45 PM. All regular orders and orders with a specified date were cancelled, while confirmed indefinite orders remained valid.
The trading halt coincided with the eve of the first delivery date for March silver futures, after silver prices had surged to above $91 per ounce before the suspension, indicating high market demand for delivery. Peter Schiff stated that the CME Group's official explanation was actually a cover-up, and the so-called technical malfunction was more likely an attempt to conceal a deeper liquidity crisis in the market. "If there were truly serious problems in the market, the parties involved would never let investors know the truth; especially when the truth would further push up precious metal prices, a technical malfunction becomes the perfect excuse to suspend trading."
New US Policy: Enactment Bill Faces "Mathematical Problem"
Peter Schiff also commented on the Good Life Act (OBBBA), which President Trump mentioned in his 2026 State of the Union address on February 24. Initiated by Texas Republican Congressman Jodey Arrington, the bill was officially signed into law by President Trump on July 4, 2025. It is a core fiscal and spending bill for Trump's second term, and several provisions have been gradually implemented since 2026, including a 1% tax on cross-border remittances and tax exemptions on tips and overtime pay.
This bill includes several major tax changes, including eliminating taxes on tips, overtime pay, and social security income, and proposing to replace the federal income tax system with customs revenue in the future.
According to Peter Schiff, the enacted bill presents a fundamental "mathematical problem": if the US government tries to maintain its current level of social welfare spending while drastically cutting fiscal revenue, it will inevitably trigger a severe currency crisis. Global market confidence in dollar assets is already declining, and coupled with the high level of US debt, this bill further exacerbates market concerns about inflation and currency devaluation, becoming a significant factor driving demand for precious metals as a safe haven. He warns that to fulfill the promises in the bill, the government will inevitably create inflation—even if welfare subsidies are still paid on time, raising funds through printing money will significantly dilute the actual value of welfare, ultimately leading to a severe reduction in people's purchasing power.
India's new policy: reshaping the pricing landscape of precious metals
Just as Western precious metals markets were embroiled in controversy due to a technical trading halt, the Securities and Exchange Commission of India (SEBI) released new structural reform rules. Peter Schiff believes that this move will accelerate the shift of precious metals pricing power to the East, driven by the continued rise in demand for physical precious metals in emerging markets and the widening gap between the Western paper gold and silver markets and the physical market.
The new regulations stipulate that, starting April 1, 2026, Indian mutual funds and exchange-traded funds (ETFs) will no longer use the London Bullion Market Association (LBMA) morning fixing price for asset valuation, but will instead use domestic Indian spot prices. Simultaneously, Indian actively managed equity funds, with a total size of approximately $385 billion, can allocate up to 35% of their portfolios to gold and silver-related financial instruments. As a major global consumer of precious metals, this adjustment in India will further strengthen the dominant role of physical prices in precious metal pricing.
Peter Schiff argues that the surge in demand for physical precious metals, coupled with the improvement of digital trading channels, is making it possible for investors to "completely bypass the banking system." He believes that gold tokens are a superior medium of exchange, completely circumventing the credit risk inherent in traditional bank deposits. Given the current eastward shift of precious metal pricing power and declining trust in Western paper markets, the advantages of this trading method will become even more pronounced. "If people can complete all transactions through gold-backed tokens, they will no longer be creditors of banks, so what is the point of banks?" Peter Schiff states bluntly.
CME Group halts trading: Technical malfunction raised questions
The CME Group issued an official statement saying that a technical glitch occurred on its global electronic trading platform (Globex), causing the trading halt. At 12:15 PM Central Time on February 25, 2026, CME Group suspended trading in metals and natural gas futures and options on the platform. Trading in natural gas resumed at 12:50 PM, while metals trading did not resume until 1:45 PM. All regular orders and orders with a specified date were cancelled, while confirmed indefinite orders remained valid.
The trading halt coincided with the eve of the first delivery date for March silver futures, after silver prices had surged to above $91 per ounce before the suspension, indicating high market demand for delivery. Peter Schiff stated that the CME Group's official explanation was actually a cover-up, and the so-called technical malfunction was more likely an attempt to conceal a deeper liquidity crisis in the market. "If there were truly serious problems in the market, the parties involved would never let investors know the truth; especially when the truth would further push up precious metal prices, a technical malfunction becomes the perfect excuse to suspend trading."
New US Policy: Enactment Bill Faces "Mathematical Problem"
Peter Schiff also commented on the Good Life Act (OBBBA), which President Trump mentioned in his 2026 State of the Union address on February 24. Initiated by Texas Republican Congressman Jodey Arrington, the bill was officially signed into law by President Trump on July 4, 2025. It is a core fiscal and spending bill for Trump's second term, and several provisions have been gradually implemented since 2026, including a 1% tax on cross-border remittances and tax exemptions on tips and overtime pay.
This bill includes several major tax changes, including eliminating taxes on tips, overtime pay, and social security income, and proposing to replace the federal income tax system with customs revenue in the future.
According to Peter Schiff, the enacted bill presents a fundamental "mathematical problem": if the US government tries to maintain its current level of social welfare spending while drastically cutting fiscal revenue, it will inevitably trigger a severe currency crisis. Global market confidence in dollar assets is already declining, and coupled with the high level of US debt, this bill further exacerbates market concerns about inflation and currency devaluation, becoming a significant factor driving demand for precious metals as a safe haven. He warns that to fulfill the promises in the bill, the government will inevitably create inflation—even if welfare subsidies are still paid on time, raising funds through printing money will significantly dilute the actual value of welfare, ultimately leading to a severe reduction in people's purchasing power.
India's new policy: reshaping the pricing landscape of precious metals
Just as Western precious metals markets were embroiled in controversy due to a technical trading halt, the Securities and Exchange Commission of India (SEBI) released new structural reform rules. Peter Schiff believes that this move will accelerate the shift of precious metals pricing power to the East, driven by the continued rise in demand for physical precious metals in emerging markets and the widening gap between the Western paper gold and silver markets and the physical market.
The new regulations stipulate that, starting April 1, 2026, Indian mutual funds and exchange-traded funds (ETFs) will no longer use the London Bullion Market Association (LBMA) morning fixing price for asset valuation, but will instead use domestic Indian spot prices. Simultaneously, Indian actively managed equity funds, with a total size of approximately $385 billion, can allocate up to 35% of their portfolios to gold and silver-related financial instruments. As a major global consumer of precious metals, this adjustment in India will further strengthen the dominant role of physical prices in precious metal pricing.
Peter Schiff argues that the surge in demand for physical precious metals, coupled with the improvement of digital trading channels, is making it possible for investors to "completely bypass the banking system." He believes that gold tokens are a superior medium of exchange, completely circumventing the credit risk inherent in traditional bank deposits. Given the current eastward shift of precious metal pricing power and declining trust in Western paper markets, the advantages of this trading method will become even more pronounced. "If people can complete all transactions through gold-backed tokens, they will no longer be creditors of banks, so what is the point of banks?" Peter Schiff states bluntly.
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