What if Mexico bans all new open-pit mining?
A constitutional open-pit ban freezes Mexico's project pipeline — Mexico is the world's #1 silver producer (~25% of mine supply) and a top-10 copper source — so the trade is silver-curve backwardation and a bid in ex-Mexico miners, not a +0.3% Freeport wiggle. Rhymes with Panama's 2023 Cobre closure, which knocked ~1.5% off global copper supply and lifted the metal. Slow-burn (existing mines run), but it caps the silver-deficit narrative that drove the Oct-2025 squeeze past $50.
how we built this number — every step
The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.
The butterfly cascade
How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.
Resolution timeline — how this probability is moving
Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 1–3 years horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.
What it would mean
If this plays out, it is a mixed shock. A constitutional reform prohibits new open-pit concessions, freezing silver and copper project pipelines nationwide. The trigger decomposes into signed root‑shocks — Silver ▲ · Industrial demand ▲ — which propagate through our causal graph to the markets below.
If it happens — the markets it would move
Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.
| Market | Class | Projected move | |
|---|---|---|---|
| 1 | Silver XAGon Hyperliquid 📈 chart | Commodity | ▲ +0.6% hist -0.84–+0.53% · other way +4.84% (n=12) |
| 2 | Freeport (copper) FCX 📈 chart | Equity | ▲ +0.3% hist -2.19–+0.82% · other way +4.9% (n=12) |
| 3 | Copper XCUon Hyperliquid 📈 chart | Commodity | ▲ +0.1% hist -0.28–+0.22% · other way -0.49% (n=12) |
Probable recommendation
Why we may diverge from history
Trust the cascade long on FCX/XCU: the supply-shock analogues (Grasberg, copper tariff) print negative because they coincided with broad risk-off — the Mexico open-pit freeze tightens copper on-channel.
Historical precedent — what analogous events actually did
Across 40 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.
| Asset | History says | Abnormal (20d · 5d) | Hit | n | Confidence | vs cascade |
|---|---|---|---|---|---|---|
| FCX FCX | SHORT | -2.1% · 5d -1.7% | 62% | 40 | 0.22 | ⚠ differs |
| XAG XAG | SHORT | -1.0% · 5d -0.9% | 62% | 40 | 0.20 | ⚠ differs |
| High-yield credit HYG | SHORT | -0.4% · 5d -0.1% | 60% | 40 | 0.16 | · |
| Volatility VIX | LONG | +4.1% · 5d -0.7% ↺ fades | 55% | 40 | 0.08 | · |
| XCU XCU | SHORT | -0.4% · 5d -1.0% | 53% | 40 | 0.04 | ⚠ differs |
| Bitcoin BTC | LONG | +3.4% · 5d -1.8% ↺ fades | 51% | 39 | 0.02 | · |
| Gold XAU | SHORT | -0.1% · 5d -1.1% | 45% | 40 | 0.00 | · |
| US dollar DXY | SHORT | -0.0% · 5d +0.1% ↺ fades | 45% | 40 | 0.00 | · |
| 10y yield DGS10 | LONG | +3bp · 5d +2bp | 45% | 40 | 0.00 | · |
Why this probability
Constitutional open-pit ban is structural/rare; Sheinbaum favors mining-friendly pragmatism despite reformist rhetoric; 1-3yr window. A base‑rate‑anchored prior, continuously scored against what actually happens — not a forecast.