Did Blackrock Inc. Just Hit A Silver Iceberg?

Perhaps A Silver Iceberg That It Helped Make?

While one day does not make a market or (usually) the entirety of a major market event, today (January 7, 2025) was a very unusual day as Blackrock Inc.’s share price (‘BLK’) lost 3.3% (see Figure 1. below) while the ‘XLF’ Financial Sector Exchange Traded Fund (ETF) lost just 0.2% today.

Blackrock has a $150 billion (B) market capitalization that is being adjusted by the market.

This Substack has been closely tracking the London silver cash or spot market that serves as the primary Western physical silver pricing platform used by silver miners, investment funds, silver users, and silver refineries.

It is estimated that London has between 4 billion (B) and 6B oz. of silver sold short into its market.

Spot silver contracts held in the London market can stand for immediate physical delivery and, because of the London silver market’s size and importance, it stands as a proverbial ostrich in the silver mine.

The estimated gross size of standing physical cash/spot claims for physical silver in London dwarfs the global refined silver bar stock that is available for delivery.

Adding to the intrigue are claims made in 2021 by Jeff Currie (formerly Goldman Sachs’ Global Head of Commodities Research) that silver ETFs purchase and vault silver for shareholders and then immediately short (or sell) claims on that vaulted shareholder silver into the market - allegedly, in essence, selling multiple claims against private 3rd party assets.

Given that Blackrock maintains the word’s largest silver ETF ‘SLV’ that holds 460M oz. of vaulted shareholder silver (roughly 50% of global silver ETF vault holdings), the spotting scope immediately swings onto Blackrock and questions are asked.

Since the central planners at the US Federal Reserve started lowering interest rates in September 2024, the US dollar index DXY has increased more than 8% driving price inflation globally compounding an existing global silver shortage while US Treasurys have fallen in price across almost all maturities.

Global physical silver demand is now escalating.

So we watch.

Was Blackrock’s sudden price drop today just episodic trading action or has Blackrock hit a silver iceberg - that it may have helped create?

Figure 1 - Blackrock Inc. - ‘BLK’ - 12 Month Price Chart; source: StockCharts.com

We await Blackrock’s CEO Larry Fink’s next personal meeting with UK Prime Minister Keir Starmer - perhaps he will not bring his entire Board of Directors along this time.

The market takes time to sort things out.

Let’s watch.

Best regards,

David Jensen