Most investors watching silver right now are focused on geopolitical tensions, safe-haven demand, and the green energy transition. But a potential development out of Beijing over the next few weeks could be the most consequential supply shock nobody in the silver market is talking about yet.
According to industry reports, China could be set to ban exports of sulphuric acid starting next month. On the surface, that sounds like a chemicals story, but it is not; it is a silver story.
The connection nobody is making is that sulphuric acid is the lifeblood of copper mining. The heap leach process, dominant across Chile, Morocco, and Indonesia, works by pouring acid over crushed ore to dissolve the copper out. No acid could mean no copper. China supplied 4.6 million tonnes of it in 2025, with 32% going to Chile alone, and now that supply could be gone.
Daily Copper Chart
Less copper mined means less silver produced. Approximately 70% of newly mined silver is a byproduct of copper mining. When copper output slows, silver supply slows with it and with the Strait of Hormuz disruption already squeezing the elemental sulphur needed to manufacture acid independently, copper miners in these regions have nowhere left to turn.
Daily Silver Chart
The silver market was already running a structural deficit, with 2026 marking the sixth consecutive year demand has exceeded newly mined supply. Now add a structural reduction in byproduct silver from acid-starved copper mines. Industrial buyers who cannot substitute away from silver in solar panels and EVs may find themselves competing for whatever physical metal remains. That competition is what could turn a supply deficit into a price event.
Whether or not the Middle East conflict resolves, the structural damage to copper mine acid supply chains means less silver is coming out of the ground. Traders looking to get ahead of that move may want to consider these two example silver setups. To help you develop a trading plan, I reviewed 25 years of my trading strategies and created a free resource: the "5-Step Technical Analysis Guide" — outlining all the technical steps you need to build an actionable plan for entering and exiting the market. You can request your copy here: 5-Step Technical Analysis Guide
Example 5000-ounce Silver Futures Options Strategy
For example purposes only, one could purchase the December 2026 Silver futures $100.00 call option while selling a December 2026 $110.00 call against it. This bull call spread costs $7,500 plus commissions and fees, with a maximum gain of $50,000, less your initial cost, if silver futures close above $110.00/oz at expiration on November 24, 2026. We believe this strategy offers a low-risk, high-reward profile.
We also see value in systematically purchasing the 100-ounce silver contract at regular intervals, layering into a position over time to potentially average in ahead of the next rally. The 100-ounce Silver futures offer a pocket-sized product with full-sized potential. To learn more, register here: Get 100-Ounce Silver
Performance Disclaimer
Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.
One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading.
For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points that can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program that cannot be fully accounted for in the preparation of hypothetical performance results all of which can adversely affect actual trading results.
