(Kitco News) - Global financial markets faced a major infrastructure disruption Wednesday as the CME Group was forced to halt electronic trading for metals and natural gas, just as silver prices surged past the $90 per ounce milestone. According to Peter Schiff, CEO of Euro Pacific Asset Management, the timing of the suspension raises critical questions about market integrity during a period of "deeply ingrained" physical demand.
The CME Trading Suspension
According to an official statement provided to Kitco News by the CME Group, the halt was triggered by a technical failure on the Globex platform.
"Due to a technical issue, the CME Globex Metals and Natural Gas futures and options markets were halted at 12:15 p.m. yesterday," the CME Group stated. "Natural gas futures and options markets reopened at 12:50 CT. Metals markets reopened at 1:45 CT. All day orders and GTDs with yesterday’s date were canceled. All GTCs that have been acknowledged remained working."
The disruption occurred at a particularly sensitive juncture, falling just ahead of the first notice day for March silver. During the session, silver tested a high above $91 per ounce.
"It's better than telling the truth," Schiff stated in an interview with Kitco News. According to Schiff, the official explanation may be a mask for deeper liquidity problems. "If they have a real problem, they don't want people to know what it is. And if the truth is something that’s going to make the price go even higher, then a technical difficulty is a good excuse to stop the trading".
State of the Union: The 'Math Problem'
Schiff also shared his assessment of the 2026 State of the Union address delivered on Feb. 24, where President Donald Trump touted the One Big Beautiful Bill Act (OBBBA). The policy includes major tax provisions such as eliminating taxes on tips, overtime, and Social Security income, while suggesting tariff revenue could eventually replace the federal income tax system.
According to Schiff, this creates a fundamental "math problem." He argued that the administration cannot maintain current entitlement spending while cutting the revenue base without triggering a currency crisis.
"Inflation has to be created to fulfill those pledges," Schiff warned. He stated that while checks may still be sent to beneficiaries, the government effectively "reduces the value of those entitlements" by printing the money required to fund them, which eviscerates purchasing power.
The India Pivot and Bypassing Banks
While Western markets dealt with technical friction, India’s Securities and Exchange Board (SEBI) announced a structural overhaul that Schiff believes will accelerate the shift of precious metals price discovery to the East.
Effective April 1, 2026, Indian mutual funds and ETFs will no longer use the London Bullion Market Association (LBMA) AM fixing for valuations, moving instead to domestic spot prices. Furthermore, new SEBI rules permit active equity schemes—valued at roughly $385 billion—to allocate up to 35% of their portfolios into gold and silver instruments.
According to Schiff, this convergence of physical demand and digital rails is creating a way for investors to "bypass the banking system entirely". He argues that tokenized gold serves as a superior medium of exchange because it removes the credit risk inherent in traditional deposits.
"What the hell do you need a bank for?" Schiff asked, noting that if an individual can settle all transactions via gold-backed tokens, they are no longer a "creditor" to a bank.
M&A Heat in the Junior Miner 'Sweet Spot'
Schiff concluded by identifying junior gold miners as the "next big bet" for institutional investors. He noted that while major producers are reporting record cash flows, they are mining gold they cannot replace, making juniors the primary targets in an accelerating 2026 M&A cycle.
Recent 2026 transactions and ongoing consolidation evidence this valuation reconfiguration:
- Zijin Mining launched a $4.05 billion acquisition approach for Allied Gold Corp. in January 2026.
- The Coeur Mining and New Gold merger is scheduled to close in the first half of 2026.
- Aura Minerals completed two transformative acquisitions moving into early 2026.
- The Robex Resources and Predictive Discovery merger was recently completed, highlighting mid-tier consolidation.
"They're the sweet spot," Schiff said of the junior gold miners, predicting Wall Street will be forced to chase performance in the mining sector to keep pace with record-high metal prices.