➡ The article discusses the potential for market fluctuations in silver and gold, suggesting that while there may be short-term risks, long-term conviction is important. It also mentions a new Silver News Daily Telegram and a silver giveaway. The article highlights the Genius Act, a piece of legislation that artificially drives short-term demand for US Treasuries, which could lead to a devaluation of the dollar and increased interest in hard assets like silver. The article concludes by discussing the lack of confidence in the US financial system and the potential for a shift towards physical, tangible assets like silver.

➡ The physical silver market is facing a crisis due to a growing mismatch between price and availability. This is due to a surge in demand from investors and industries, and a lack of investment in mining over the past decade. As physical silver becomes scarce, the paper price may collapse under its own illusion. Meanwhile, banks that once suppressed silver prices are now betting on its rise, indicating a major shift in the financial system.

➡ Central banks are moving their gold back from the Bank of England and the New York Fed, possibly due to fears of instability. This, along with tariffs and other economic factors, is causing a shift in the gold and silver markets. As a result, there’s a surge in demand for physical silver, causing shortages and high prices. This situation is seen as a sign of larger financial issues and could lead to significant changes in the value of silver.

➡ As the price of silver rises, refiners are struggling with increased margin calls, forcing them to halt new orders and focus on refining their existing stock. This situation has allowed some companies to buy silver under its market value and sell it to the public at a lower price. However, once the current supply is depleted, the price is expected to rise again. Despite its past manipulation, silver’s value is predicted to increase significantly in the future, potentially reaching $1,000, due to a combination of factors including the end of suppression, a decrease in the dollar’s credibility, and a dwindling physical supply.

The US Banks are largely net long. They did the jiu jitsu move and they flipped. All of these other assets have been allowed to move higher. In this inflationary world that we live in, making the people who hold assets wealthy, why did they hold down gold and silver? And okay, they did. So now where does it go when it’s no longer being held down? That’s the question. I would argue much higher with volatility, but much higher nonetheless, until we see a massive influx of and gold and silver additional supply. You’re watching Silver News daily. Subscribe for more.

Silver didn’t just break $100. It shattered the illusion. For decades, silver has been suppressed, mocked, and misunderstood. But now it’s forcing the world to pay attention. This isn’t some fluke rally or speculative spike. This is the start of a financial reawakening. And $100 is just the first domino to fall. Because behind this breakout is a tidal wave of monetary manipulation, vanishing trust in the dollar, and a global shift away from paper promises and toward real, tangible value. And here’s the kicker. Andy Schekman, a man who’s been warning about this moment for years, says $1,000 silver is no longer some outlandish fantasy.

It’s a looming reality. A storm is building, one that could reshape the financial system as we know it. So the question isn’t will silver keep rising? It’s how fast will it go once the chains are off? The reason it happened is because there are some companies that I think are smart, like we were, and I’m not patting myself on the back, but I saw what was happening with the junk. I’ll tell you why it happened. And I was watching these junk premiums collapse. And I literally told both operations in Florida and in North Dakota, go into every line of credit you have, and I will provide whatever amount of money that I have as well.

And buy up every single ounce you can find in pre 65 silver. I don’t care. Turn over every rock, listen to everyone who’s calling you, and buy it. And, and that’s. That’s the truth. And why. Why did it get so cheap that I could buy it at, you know, as much as $2 under spot at one point? Why? Or even lower, why did that happen? Because here’s how it happens. So during the. And it will. It will. That overhang will end quickly, and you’ll see premium slingshot on it and catch up. And the reason that that happened in my mind is that so you have half a dozen companies like mine who got this right? Maybe us and Money Metals and Atmax and JM whatever.

They figured this out and so they went and bought everything. But what did they figure out and how did they figure it out? Not very hard. Here’s what happens. We have 3 million ounces of silver in our warehouse right here. I will sell 3 million on COMEX paper. So as one goes up, the other goes down. If I lose $10 an ounce on my 3 million ounces in physical in the warehouse, I make 3 million or I make $10 an ounce on those 3 million ounces, $30 million on what I sold short on Comex allows me to be market neutral at any given time.

Right? That’s how the COMEX was designed to hedge and hedge risk. Okay, great. So there you got all these smaller and mid sized coin companies who don’t. I’ve been doing this for 36 years. Next month I know all of the traders, I know all of the refiners, I know all of the major players and I can very quickly move things around. If you’re a small local dealer, you’re a small company that really doesn’t have the connections. You’re working with one wholesaler or whatever it may be when this stuff comes in, when you bring. And for the last year or two, the demand by the public has been not so strong.

Silver goes up to 50 and everyone starts selling this stuff, right? So the coin shops are filled with junk silver and no one’s buying it. And so what do they do? They try and send it into the refiner to get it melted down. Now here’s where it gets interesting. Remember what I said about hedging? So you’re a refiner and you’re not a big one, or you are a big one and say you’re a big one. Silver’s breakout past $100 didn’t come out of nowhere. This was a pressure cooker, decades in the making and it just hit critical mass.

What we’re witnessing is the release of pent up energy that’s been building through years of reckless monetary policy, exploding government debt and unchecked inflation. For years the Fed printed trillions artificially suppressed interest rates and inflated the everything bubble. Housing stocks, crypto, even used cars. And while gold crept higher, silver was held back like a racehorse kept behind a gate. But now that gate’s been flung open. This move isn’t just about inflation, it’s about global de dollarization. As confidence in the US dollar evaporates, nations are dumping treasuries and hunting for real Assets. And silver is finally stepping into the spotlight.

Industrial demand is also spiking. With the green energy revolution accelerating. Silver’s use in solar, EVs and electronics is climbing fast, supply not keeping up. Combine monetary chaos with industrial urgency and you’ve got a rare setup, one that pushed silver through $100 like it was nothing. But this is just the ignition point. The fuel’s still burning. Been badgering Powell forever to lower interest rates. And you look at the, you know what Goldman Sachs said six, six, eight weeks ago, or a little bit longer than that, and they said if the market believes that, that the Fed has lost independence, gold will go parabolic.

But then I ask, well, what about Steven Mirren, who was the architect, is the architect of the Mar A Lago Accord, who is. Was Trump’s adviser who filled the first vacated spot at the Fed? And I think the Fed has lost independence. I think what you are looking at is further incentive for nations around the world to continue to dump Treasuries and dollars. Who wants to hold dollars or accept dollars for goods and services when we are moving at breakneck speed into a devaluation of the dollar and to more suppression of interest rates, more quantitative easing, as they say, 40 billion a month that they’re going to start doing, the lack of quantitative tightening, never getting your balance sheet in order.

If there is no separation between the treasury and the Federal Reserve, I think confidence exponentially erodes globally and the dollar falls further. So it’s not a good look, actually, and, you know, it to me is rather obvious what he’s trying to do. The moral of the story is they want interest rates lower, which is really not good for the situation we are in. And arguably that’s what got us in this problem to begin with, where asset prices have become distorted and, you know, you have misallocations of resource and capital that has manifested itself into an environment where, you know, rates have.

If rates don’t go lower, well, and easy money doesn’t continue, you end up. For years, silver’s price was held underwater by powerful forces operating behind the curtain. Andy Schectman calls it a financial jiu jitsu move. US Banks that once held massive short positions in silver flipped quietly, going net long. But before that pivot, they worked tirelessly to keep the price suppressed, using paper contracts and leverage to control a market they feared would expose the fragility of the dollar. And now that suppression is breaking. What happens when you let a beach ball go after holding it beneath the surface? It doesn’t rise.

It launches that’s what we’re seeing with silver. These banks didn’t just flip sides on a whim. They knew what was coming. They saw the growing discontent with fiat currencies, the runaway inflation and the tidal shift in global capital. They recognized that the same suppression mechanisms used for decades were no longer sustainable. In a world where supply is tight and trust is eroding. Now that the shackles are off, silver isn’t just catching up, it’s making up for lost time. And in doing so, it’s setting the stage for something much bigger. Especially after a move like we’ve seen when everyone starts talking about something being a certainty, that’s when the market will remind us that it doesn’t care about your conviction.

That said, yeah, in the short term, sure, it can pull back. It’s a thin market. And after a vertical move, you can see what’s called an air pocket or a sharp air pocket. That is a function of profit taking, of margin pressure. We saw margins increase, of headline risk. Yeah, you should sell it, it’s at its top, you name it. But look, a 10 or $20 correction in silver is not only possible, it’s normal in a market that’s moving like this, but it’s the underlying conditions that got us here. Tight physical availability, massive delivery demand in a paper market that is now being asked to settle real world demand, not make believe on paper, in real metal that they may not actually have.

So, yeah, I mean, could the metals drop? Of course. And I’d actually be surprised if we don’t get some violent pullbacks along the way. But not trying to sound like a salesman, because I’m not. But in this fact, in this respect, dips are a gift because these dips would be driven by positioning limits and positioning and leverage, raising of margins as an example, not by a sudden surplus of metal. So I don’t know, I think the bigger issue is it’s not. The risk isn’t in silver going from 80 to 70 or gold going from 4600 to 400, the risk is waking up in a market.

And you’ve seen this yourself since you and I have been working together where you can’t get what you want at any reasonable premium or any reasonable price and the price you thought you’d be able to buy it is gone. And so, yeah, short term caution, absolutely. Long term conviction, absolutely. In my opinion, both can be true at the same time. You can be cautious short term, but very much convicted long term. And that’s proper way to look at it, right? And not be so bullish that you don’t see some pitfalls, but be bullish enough to hang on when you get bumped.

Just before we get going, we just launched the official Silver News Daily Telegram. To kick things off, we’re running a 10 ounce silver giveaway. Yes, real physical silver. Not a voucher, not digital credits, actual bullion. This telegram will be our new home for real time silver discussions, market insights, collection picks and everything precious metals. It’s where the community truly comes alive. Here’s how to enter the 10 ounce silver giveaway. Be subscribed to Silver News Daily on YouTube. Turn on the notification bell, comment 10 ounce giveaway on three separate videos, be an active member of the Telegram group and say hi.

Once we hit 500 Active Telegram members, we’ll pick one lucky winner to receive 10 ounces of silver shipped directly to you. So get in early. Stay active. One of the most overlooked catalysts behind silver’s explosive breakout is a quiet piece of legislation called the Genius Act. On the surface, it’s a stablecoin regulation bill, but underneath, it synthetically drives short term demand for US Treasuries, effectively forcing money into the front end of the bond market. This artificial demand suppresses short term interest rates, making it appear like the system is stable. But Andy Schectman warns this is nothing more than monetary sleight of hand.

By clamping down rates through synthetic mechanisms rather than market forces, the government is kicking the can down a road that’s already crumbling. This creates a paradox. On one end, they’re trying to paint a picture of economic strength through low rates and artificial calm. But on the other, that very manipulation accelerates devaluation of the dollar and destroys confidence among international creditors. The world sees what’s happening. Foreign governments aren’t buying the lie. They’re dumping Treasuries, fleeing the dollar and turning to hard assets. The Genius act may slow the bleeding on paper, but in the real world, it’s driving people to gold and increasingly to silver.

Because unlike bonds, silver isn’t a promise. It’s value in your hand. And in a system propped up by illusion, that makes silver more powerful than ever. Which to me is telling the real story. Delivery behavior is telling the real story. And this is not speculative position. This is a fight over real inventory. And to me, December really jumped out. 3,706,000 ounces of gold were delivered and 64,730,000 ounces of silver. 64,000,730,000 ounces of silver were issued and stopped. That means delivered and a mint Box of Silver Eagles weighs 42 pounds. What does 65 million ounces weigh and who’s doing it? But this is every single month.

I’ve been screaming this every single month since a year ago November. That’s the largest December influx in the history of the Comex market market, which goes back to 1974 and January, which is not a major scheduled delivery month. In just the first few days of the month, we’ve seen pretty Damn well near 35 million ounces of silver delivered. 35 million in a non delivery month within a week of trading. You add that to what we already saw delivered in December and you’re over 100 million ounces of silver that’s been delivered in, in a little over, you know, a month and a half, a month and five weeks.

And you know, the, that’s almost the amount of silver that was mined by just the silver mining companies. Last year there was 800 million ounces mined. But the silver miners, according to Rick Rule only came up or responsible for 17 or 18% of that. So what’s that? That’s 12, 13 million, 120, 130 million ounces. Well, that was almost completely delivered just in the first, the last month of December and the first two weeks, if that of January. The rest was byproduct mining from the zinc, copper and lead mines. But my point is, is that whoever is doing this, they’re doing it for a reason.

Look, in terms of silver, people need to understand it’s a tiny market relative to the capital that can and is flooding into it. And when that happens, the, the move will be fast as we’re seeing, and disorderly perhaps as we will really see. And in short, I think it can very quickly cascade on down into the retail market. Now it’s starting to get a little bit, it’s bubbling in the retail market. It isn’t where I think it needs to be. It’s not frothy at all. But what you see at the highest level of huge deliveries that are as unusual as a ten leaf clover, let alone a four leaf.

Yeah, I think it will start to trickle down into the retail market where availability becomes very difficult because we’re seeing it at the highest level. And at that highest level, those institutional sized bars, well, those are the ones that find their way into refineries that make coins and smaller investable bars. So yeah, it’s coming, but not here yet. But it is coming and you can see it through deliveries that are so far outside the realm of normal that the fact that guys like Jim Cramer and any of the Main street analysts who supposedly care about the public.

The lack of any journalistic integrity is appalling to me. This to me is a much, much more interesting story than the crap that they talk about every day. And yet there’s not a word, not even a word that silver’s at all time highs. Unless it’s Reuters calling it the devil’s metal and stuff. So yeah, it’s just, it’s just appalling. Confidence is the foundation of any currency and right now that foundation is cracking. Across the globe, trust in the US financial system is evaporating. Nations that once stockpiled dollars and Treasuries are now racing to unload them. Why? Because they see what’s coming.

Andy Shechtman puts it, when there’s no longer a separation between the treasury and the Federal Reserve, when political motives dictate monetary policy, you no longer have an independent central bank, you have a puppet show. And that realization is fueling a global exit from the dollar. The BRICS nations aren’t just talking about alternatives, they’re building them new trade routes. Gold backed settlement systems and a growing refusal to accept the dollar as payment are signs of a tectonic shift. When trust goes, so does demand. And when demand for dollars and Treasuries disappears, the only safe havens left are physical, tangible assets.

Gold gets the headlines. But silver, with its dual role as both monetary metal and industrial workhorse, is riding that same wave with even more upside. The collapse of confidence is not a risk, it’s a reality. And every ounce of silver is becoming a vote against the system that caused it. Well, who wants to give, you know, our money or who wants to give us money for 10 years at rates that are so absurdly. I mean, if rates were to normalize to a level that was commensurate for money creation and inflation, this is why they suppress the measurements of inflation.

That’s why they lie about the CP lie. And because if it were true, if we really understood that inflation is closer to 10 or 11%, as John Williams would say, instead of the three that we’re being told or less, no one would buy things like 10 year treasuries to guarantee a negative real return. So in order for the 10 year treasury to find demand, either rates have to go much higher or as Judy Shelton says, peg it to gold. Now if you peg the back end of the treasury market to gold in an effort to continue to allow the dollar to devalue by letting gold go higher and higher and higher and higher and Letting the dollar go lower and lower and lower and lower, then you don’t need interest rates much higher at all.

You can have virtually zero interest rates on the back end of the bond market, redeemability and gold. But gold’s got to go much higher or you’re going to end up giving away all your gold. So could it happen? Maybe, maybe that’s part of the plan. But I don’t see how you can suppress short term rates and let long term rates go higher. That’s really where the problem is. It’s less the short term and more the long term rates that I think they’re worried about. As this global loss of faith unfolds, a silent crisis is taking shape in the physical silver market.

And it’s getting harder to ignore. Silver may be priced on paper, but it’s the physical availability that tells the real story. Right now, premiums are soaring, delivery times are lengthening, and even major wholesalers are struggling to keep stock. According to Andy Schectman, this is the early stage of a supply chain fracture that could soon become unmanageable. Investors aren’t just buying, they’re scrambling. And the tighter the supply gets, the more desperate that scramble will become. This isn’t just a short term bottleneck, it’s a structural problem. The mining industry has been underinvested for over a decade. And while demand has skyrocketed due to industrial use and monetary fear, production hasn’t kept up.

Even worse, as prices rise, retail investors are waking up. They’re flooding into the market with urgency, often clearing out inventory in days, not weeks. The comics may still show bars on paper, but but in the real world, there’s a growing mismatch between price and availability. And when physical silver runs dry while demand accelerates, the paper price will have no choice but to follow or collapse under its own illusion, having the whole system crush under its own weight. You pull out all of the money that the bank of Japan now is forced to retreat from in terms of all the money that they’ve had spread throughout the global ecosystem because of low interest rates in Japan.

Again, when the market suppresses interest rates instead of, or when the banks handful of rich bankers suppress interest rates instead of letting the market do it, you create distortions. Japan is going to have to deal with it. We’re going to have to deal with it. And after decades of yield curve control in Japan and that now bringing their assets and the money back home to buy Japanese government bonds, creating a domestic bid to replace maybe the waning influence of the bank of Japan. Well, the same thing is true here. They’re going to have to deal with it, we’re going to have to deal with it.

And I think that that’s what Trump understands, that higher rates will blow up everything. Stocks, bonds, real estate, the insurance companies that are loaded with treasuries, the banks. We saw what happened when the 10 year went above 5%. What happened? What if it went to 10% and in an environment where the world is selling treasuries. He wants to do this. But it’s interesting because the Genius act will create synthetic demand for the front end of the curve. That is the end of the curve that supposedly the Federal Reserve has the ability to control the very, very short overnight lending market.

The synthetic demand for US Treasuries backing the movement of money via the stablecoin passage the Treasury. I mean the Genius act will do just this. So unless they’re going to embark upon yield curve control and we see Japan moving away from that right now because of where they got, it’s not a good thing. And we should be trying to unwind all this stuff, let alone trying to add to it. So no, I think it’s a bad thing. It’s a scary thing. And it just speaks to a growing, a growing rallying cry from the global south to the global south of why not to hold dollars and why to find alternate settled settlement routes.

And also to any folks who are holding dollars. You’re silly to now layer this on top of something even bigger. The growing movement to re anchor global trade with real assets, specifically gold. The BRICS plus nations are actively exploring a gold backed settlement system to replace the dollar in cross border trade. And while gold may be the chosen peg, Andy Schectman makes it, silver won’t be left behind. In every historical monetary system, silver has played a critical supporting role. It’s more abundant than gold, yes, but it’s also more accessible, more transactional and more connected to the real economy.

Once gold becomes monetized again, silver follows. It always has. But this time it may move with even more intensity. Why? Because silver is not just a monetary metal anymore. It’s a strategic resource vital to energy, infrastructure, technology and defense. So as the world pivots back to hard assets, silver will be swept up in both the monetary shift and the industrial revolution. And when billions of people across multiple continents begin valuing silver not just as a commodity, but as money, the price impact won’t be linear, it will be exponential. All these banks hanging on by a thread with massive exposed naked shorts on the LBMA.

David Jensen will tell you 2 billion ounces of outstanding contracts could stand for delivery against 140 million ounce float. Which he would say stands to question that he doesn’t even think there’s that much. Even though they’re public publicly saying there is. But even if there is, that’s a rehypothecation by 15, 16 times. 1 out of 15 gets their metal the rest. And that systemic nature, if a bank like UBS fails, well they don’t just own metals. They own everything from equities to forex to you name it and the systemic contagion blows up the entire ecosystem. Now is it going to happen? Not saying it’s my theory, but it’s Tom’s and I listened to it.

Very, very interesting, you know, with great interest. And I see these pieces coming together and I would believe it at this point. You put everything together. The banks flip flopping, lying about tariffs to cover their shorts to go long. The US classifying silver critical mineral. China saying yeah, well now we’re gonna limit exports. You start to wonder, hmm, could this truly be? And then you see this Chinese AI guy, they call him Asian guy, right? And if he’s right about three things he said that all culminate in January 31st. He said UBS there was a. And I hate how it’s always a leaked memo.

If it’s true, this guy’s in military intelligence or something. We’ll find out at the end of the month if he’s true, if he’s right, if he’s real. Leaked memo says that ubs has was 100% closing out all of their silver positions and will be net long, which by their internal memo says silver will be between 3 and $500 depending upon how orderly or disorderly it gets that JP Morgan has told all of traders to exit all futures positions by the end of January. All of them. And that same thing happened with Morgan Stanley. All leaked memos that made it to the traders.

Okay, if it’s all true, it would fit like a hand in glove like everything I said. Why would they do that? Because there’s contagion. Just like your fingers are all twisted up like this. It’s contagion. They’re all connected somehow some way. So you get out and let them all go down. Who’s the ones that are gonna go down? If the economic time’s right, US banks are long. Well it will blow up the European banks. Now he’s been creating a lot of stir over this Asian guy. I bring it up because everyone’s been asking me about it.

So could it happen? If he’s right, not only is he military intelligence or someone with deep in the inside who is doing this for a reason to wake people up, Maybe there is some truth to what Luongo thinks, I don’t know. But we’ll find out in three weeks. Either way, what is happening. As the Chinese Kursk says, we live in very interesting times. And we’re about to find out how interesting. Perhaps the clearest sign that everything has changed is who’s now betting on silver. For decades, the US banking giants were the predators of the silver market, routinely shorting it, capping rallies and profiting off suppression.

But not anymore. As Andy Schectman revealed, the banks have flipped the script. They’re now net long. That’s right. The very institutions that once pushed silver down are now positioning for it to rise. This isn’t just a minor shift in sentiment. It’s a tectonic reorientation by the most powerful players in the financial system. These are not retail speculators chasing headlines. These are trillion dollar entities with access to inside information, legal loopholes and predictive models far beyond the public’s view. When they go long, it means they see what’s coming and they want to be ahead of it. It’s the financial equivalent of rats leaving a sinking ship.

But in this case, they’re leaving fiat based assets and swimming toward precious metals. If the people who engineered silver’s suppression are now preparing for its rise, that’s not just a signal, it’s a siren. And the question for everyone else is, are you following them or fighting the tide? Commitment of traitors Report like, who the hell are the others? Who’s standing for delivery? No one ever stood for delivery. I started saying this to you on almost every podcast. You and I done hundreds of them in the last five years. And I know you remember that, and I was saying it to you back then, that something is breaking in the system, that delivery is being prioritized over paper promises.

And then we talk, we move to, well, why are all the central banks repatriating their gold from the bank of England and the New York Fed, which gave Western rule of law and access to the COMEX and the lbma, right? Why are they doing this? So we’ve seen purchasing by the central banks, we’ve seen repatriation by the central banks. And let’s take it one giant step further. Who the hell is doing it here in the United States? And when you talk to guys like David Jensen, who tell you that the LBMA is about this close to literally blowing apart.

When you listen to Tom Luongo who says Trump is out to get the European aristocrats by blowing up maybe the banks. How do you that? Well, you fool them into thinking it’s tariffs. Everyone sends the metal back here to cover the tariffs because the east and the banks in the United States and Europe have gone back and forth selling, sending metal back and forth largely in the form of warrants, rather than sending the metal back and forth. You own it. No, I own it. No, you own it. But the money goes back and forth to create this illusion of volume and largely suppressing the price.

So Trump comes in, they threaten tariffs. Okay, guys, send the metal back, please. We gotta cover this. Don’t worry, it’ll all go back to you. This will all blow over. And all this metal that’s coming back because of tariffs and arbitrage, I’ve been saying since the beginning of the year, phooey, I said that to you last year, that’s not happening. This is reshoring. It’s what they’re doing. And now all that metal’s back. And the economic times says, yeah, they’re long, they flip flopped. US Banks are not long. Who’s short? The European banks. Trump believes, according to Luongo, that they’re involved in the election interference, perception of anyway and any color revolution that you and I lamented over for four years in the previous administration.

And he’s out to get them. How do you get them? You allow these leveraged banks to have a failure to deliver. And that looks like what is happening. All the gold got reshored, the banks flip flopped, the European banks are on the hook for it. And if a bank like Deutsche bank or there was just a report that came out that UBS has realized and I had dinner last night with a man from Switzerland who I’ve worked with for 35 years. And he said that largely corroborates what he’s been told, that the UBS realizes that the derivative position of Credit Suisse that they inherited was far worse than they thought.

As institutional giants quietly shift their positions, the retail crowd is doing the opposite of quiet. They’re flooding in with urgency and it’s starting to overwhelm the system. Dealers are reporting record volumes, premiums are exploding, and in many cases inventory is gone within hours of restocking. Andy Schectman warns that this isn’t a temporary surge. It’s a panic unfolding in slow motion. And it’s not just about fear of missing out. It’s about fear of being left with nothing. Supply chains already stretched from years of pandemic disruption are now colliding with a wave of new buyers who’ve lost faith in banks, currencies, and the system itself.

Add in geopolitical shocks, shipping bottlenecks, and unstable refinery output, and you’ve got a recipe for severe dislocation in the physical silver market. This is no longer a matter of price. It’s a matter of availability. And once the crowd realizes that out of stock doesn’t just mean delayed delivery, but no delivery, the rush will accelerate. In this kind of environment, price charts become irrelevant. What matters is possession, and the market is waking up to that reality fast. But, you know, one of the most important tells in my mind right now is the Shanghai market consistently pricing metals above Western spot and futures.

And it’s basically screaming that the metal’s worth far more than where it’s being financially priced here in the West. And I think that’s a big deal. This widening spread is a signal of tightness. It’s not a rounding error. It’s perhaps the beginning of real price discovery for the very first time. I guess I would say like this. The east is doing price discovery in the physical market, and the west is still doing it price discovery in the paper market. But this spread, which continues to widen both in lease rates, which were as high as 30 or 40%, you can lease metal for short periods of time to cover whatever it is to borrow it and sell it or sell short or to cover the need for it or whatever, you can do that.

Those premiums are usually a fraction of 1%. They’ve been as high as 40%. They’re about 8 or 9% right now. That’s massively higher than what it normally is. And it disincentivizes leasing, makes it really hard to cover a position when you got to pay 8, 9, 10, 30% to borrow the silver. But when this spread widens, when these two worlds stop agreeing, you know, that’s when the physical market begins to overrule the paper market, and that’s when the dam breaks. And I would argue the move won’t be polite. You’re seeing some very, very interesting things happen with the banks.

Now, I told you the Tom Luongo thesis, and I kind of expanded on it, and I believe that it could very well be true. And when you see the last CTFC bank participation report that just came out, it exposes what Tom’s been talking about and what I’ve been talking about adding to it this silver time bomb where non US banks are net short 206 million ounces or 33% of open interest. And these, these unrealized loss are biblical in scale. Done again. And, and what the Financial Times article says, and what does the bank participation report largely corroborates is that US Banks are largely net long.

And as their rivals are drowning in losses, then the US Banks are largely net long. They did the jiu jitsu move and they flipped. Could be very interesting. I would say that all you need to see when you talk about what could be is the amount of deliveries and they’re not slowing down. The biggest December delivery in the history of the comex already this January, bringing in billions of dollars worth of gold and silver. And it’s only seven days in. But this has been every single month since last November, a year ago November. I think anyone who doesn’t see this for what it is is missing a very big picture.

So even though we’re at high points, so what. What is high when the metals have never been allowed to find price discovery? Why isn’t people say that about the Dow Jones at 50,000? I started this industry, it was at 2100 in 1990. So you tell me what is high when all of these other assets have been allowed to move higher in this inflationary world that we live in, making the people who hold assets wealthy, why did they hold down gold and silver? And okay, they did. So now where does it go when it’s no longer being held down? That’s the big question.

I would argue much higher with volatility, but much higher nonetheless, until we see a massive influx in gold and silver. All of this monetary distortion, collapsing trust, institutional reversals, and physical scarcity culminates in one unavoidable how does silver not reach $1,000? The forces pushing silver higher are no longer theoretical. They’re happening in real time and they’re converging with breathtaking speed. Andy Shechtman doesn’t just see silver as an asset, he sees it as a signal, a reflection of everything that’s unraveling in our financial world. And when a suppressed asset finally finds freedom, it doesn’t move in increments, it leaps.

$100. Silver was once unthinkable. Now it’s reality. But the price still doesn’t reflect the true monetary role silver is stepping into. As the dollar deteriorates, central banks lose control and the global economy pivots to real collateral, silver becomes more than a hedge, it becomes the alternative and in that world, a four digit silver price isn’t extreme, it’s overdue. The question isn’t whether silver can get there, it’s what happens to everything else when it does. $50 million that you paid for in silver that you bought from the public. You bought candlesticks and flatware, you bought jewelry, you bought junk silver, you even bought Dorade.

You got all this stuff that is in various stages of production. You have to melt it down into shot which are like bb. So you gotta pull out the impurity and melt it down into little ball bearing size pieces of shot. And then from there you gotta melt that down into your bars and your rounds. And that the whole process in various stages can take weeks. Right. Well, that $50 million in inventory, you have to hedge it, right? And, or you’ve already paid the money. And what if the price collapses by 50 bucks an ounce down to 30 bucks, you’re out of business.

You just lost, you know, millions and millions and millions of dollars. You might as well shut down operations. So they hedge their inventory that they are working to sell, but because it takes several weeks, they’re not selling it. They’re not rotating their cash fast enough. So what’s happened to their short position as the price moves up by six bucks? Bang, margin call. Bang, margin call. Bang, margin call. And they’re getting margin called to death. And so they’re like, oh my God, if we don’t put up this money, they’re going to close us out, they’re going to liquidate our positions.

We’re dead. We can’t take any more business, we can’t take any more business until we clean out this whole supply chain thing. We got stuff in works. Yeah, but it’s taking too long. And so what’s happening is many of the refiners stop taking new orders for the last several months until they clean up their, you know, what they already have in production. And as a result the big primary distributors or anyone making a market and this stuff was paying under spot for it. And I bought every single penny I could buy, literally because I saw that very clearly.

Now this will change, but it’s really because the refiners are getting margin called with their exposure to big allotments of gold and silver that they are working on refining. Not moving fast enough. And the margin calls, silver moving up so fast against their short position is creating a very, very big problem for them. That’s why I was able to do it. And that’s why the companies that bought a bunch figured it out. A little secret sauce of running a company for 36 years that you can see it. And that’s just the way the market worked. I didn’t set the price, but I took advantage of it and I sold it to the public for a buck under spot.

I didn’t screw anybody, of course. I wanted to give that same value that we were able to get and pass it on. So that’s why it happened and it will, once this availability is gone, industry wide premiums will go right back up. So I wouldn’t sell it. I wouldn’t unless I had to. I wouldn’t reposition unless I had to. Because, you know, by the time this fully wake, you know, flushes through silver. Breaking $100 isn’t the end of a journey. It’s the start of a new era. For decades, silver has been the most misunderstood and manipulated asset in the financial system.

But now the mask is off. With suppression ending, institutions flipping long, the dollar’s credibility crumbling and physical supply vanishing, Silver’s rise to $1,000 is no longer a wild prediction. It’s the logical next step in a broken system searching for truth. And in that search, silver stands tall not just as a medal, but as a statement, a warning and an opportunity. If you’ve made it this far, you see what’s coming. So stay informed, stay prepared. And remember, this is not financial advice. Always speak to a professional before making any investment decisions.
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