Diving Headlong Into Catastrophe + Silver Vault Holdings Update

Gold And Silver Speak Loudly

With the US/Israel headlong rush to attack Iran, the coming energy price inflation shock is rapidly pulling-out a lynchpin beneath the global financial system - cheap credit.

Government bond yields, in a seeming paradox from a conventional viewpoint, have run higher in the six days since the initial attack. But safe haven, you know.

Yet, given the coming sharp spike in price inflation underpinned by much higher energy prices, this should be no surprise.

Not only has 20% of the world’s hydrocarbon energy supply been cutoff, but 50% of the world’s seaborne fertilizer supply has also been locked-in by closure of the Persian Gulf.

Food and energy will both become increasingly scarce.

The Global Credit-Fueled Asset Bubble Ends

In the 1970s, loose monetary policy by central banks was ended by the gold and silver price warning system. From 1971 to 1980, bonds were sold and gold and silver were bought driving interest rates over 19% before central banks got the message. Gold increased in price 21x and silver increased in price 24x in those 9 years.

Starting in 1987 with the Bank of England overseeing creation in London of the trading of promissory notes for gold and silver in lieu of physical metal bars, infinite supply of gold and silver were provided to the global financial system.

This allowed, for a time, increasingly loose monetary policy to be effected by central banks without the price of gold and silver sounding alarms in the financial system. What Alan Greenspan claimed was his favorite monetary warning system was muted. The Maestro was conceived and financial asset values arced skyward.

But then a few years ago, the onset of shortage of gold and silver started to be noticed globally and their prices began to run, as is always the case after a period of price fixing (suppressing) any commodity value. Shortage then escalating prices. Interest rates began marching higher.

The end of loose monetary policy that spawned a 40 year asset bubble was in sight.

Figure 1 - M2 Money Stock (Total System Currency) 1980 - 2026; source: St. Louis Fed

Time To Act

Since 1987, consequences of the secular loose central bank monetary bubble, enabled by suppressed gold and silver prices, were temporarily sequestered into highly elevated asset values. Stocks, bonds and real estate. But recently, higher interest rates began enacting a slow margin call that saw these markets start to rollover.

Wars are expensive and higher interest rates bringing collapsing asset bubbles, currency devaluation, and widespread goods price inflation created an incentive to act quickly. For those who consider the human cost secondary. Handlers decided it was time to move.

However, by triggering a new global price inflation shock now likely to be accompanied by food shortages, the world faces a catastrophic unwind of central banks’ 40 year credit-driven asset bubble.

Financial asset market values (stocks and bonds) have globally, over 40 years, been inflated to $270 trillion (T) and sharply higher interest rates will bring a concomitant sharp decline in these values.

Monetary safe haven assets gold and silver currently have an annual supply to market valued at approximately $0.8T.

You can see where this goes.

An Update On Major Exchange Silver Inventories

Our March 4, 2026 update on the rapidly declining silver exchange inventories globally, noted that ‘Registered’ vault inventories (i.e. inventory available to market) in CME COMEX vaults in New York had declined at a net rate of 20M oz. per month over the prior 5.5 months to stand at 87M oz.

Yesterday, the COMEX reported an overnight drop of 6.7% of this inventory with 81.2M oz. remaining.

The distressed Shanghai Futures Exchange today announced an overnight draw-down of 6.2% of its remaining silver stock, exchange vault stock that have declined by 95% since early 2021, with 8.2M oz. remaining.

Figure 2 - CME COMEX New York ‘Registered’ Silver Vault Stocks; source: GoldStocksRUs.com

Best regards,

David Jensen