Loading ...Buy Silver: Systemic Shortages Driving Silver’s 16% Monthly Surge
Silver had an even stronger month than gold, soaring 16% in September and inching toward historic highs. According to Jensen, this isn’t just speculative frenzy—it’s the inevitable result of years of global deficits and a shrinking pool of accessible physical supply. “We’ve got three years of 800 million to a billion ounce deficits,” Jensen pointed out, “and before that it extended for a couple more years.” Despite these deficits, the vault stock in London hasn’t budged, staying flat at around 140 million ounces since May. “The conclusion I’ve come to is that’s not available to market… that’s held by private owners,” he asserted.
Even ETFs like SLV are failing to reflect the real pressure in the system. Jensen suggests that the physical silver supposedly backing these ETFs is likely unavailable or being illegally rehypothecated. “The ETF holdings in London have barely gone up at all,” he noted, despite the explosive price action. As for the free float? Jensen claims it’s virtually nonexistent: “The amount of silver bars in the 1000 ounce format… that are truly available to market right now are measured in the tens of millions of ounces.”
With such tight availability, the physical silver market is entering crisis territory, evidenced by backwardation, surging lease rates, and static vault numbers.
Silver is overbought and just about nobody believes the cabal will allow silver to go above $50 for very long.
So the right strategy is undoubtedly staying the course if you are in it to win long-term because sentiment in the retail trade is lousy – and volatility can work both ways with precious metals under such circumstances.
For this reason – surprises will be to the upside.
Mornin all