London's Serious Silver Shortage Continues
“This sucker could go down.”
George W. Bush, September 2008
George W.’s eloquent summary of financial markets in 2008 could just as aptly be applied to the London Silver Market today.
On October 10, 2025 the City of London’s cash silver market seized-up for more than an hour due to metal shortage.
London is the world’s largest physical silver market. The LBMA claims that the London Silver Market currently trades up to 700 million (M) oz. of silver per day. This translates to billions of oz. of existing ownership claims for silver bars in London’s cash/spot silver market where these spot contracts provide for immediate delivery on demand.
London vaults on September 30, 2025 reported holdings of 140M oz. of silver that were not owned by ETFs. However, the October 10 lock-up showed us that liquid holdings in London and available to market were effectively zero. Silver was privately vaulted in London but almost none offered to market.
Imagine a single marble rolling around in the bottom of an empty steel drum - this effectively was London’s silver market liquidity.
We can see that London is now operating on a ‘silver in - silver out’ basis. It can only provide silver for London delivery if silver is first delivered to London.
India’s Terrible Silver Demand - Not Terrible
India’s silver demand has been generally declining over the last year however in September, India imported 33M oz. of silver from various sources before India imposed import restrictions on September 24.
That 33M oz. of Indian silver importation should be touted as the cause of London’s silver seizure in a 1.2 billion (B) oz. annual global market tells observers just how short the global market is of available physical silver.
New York And Shanghai Cannot Save London
In October, New York and Shanghai silver stocks have been drawn down by 46M oz. and 22M oz. respectively. Some of this silver was shipped to London and elsewhere to meet global demand giving London a temporary reprieve.
Again, London has a silver problem measured in the billions of oz. and trades ca. 700M oz. of cash/spot silver claims for immediate ownership of metal bars, deliverable on demand, per day.
The math of the London market hopefuls simply does not work.
Best regards,
David Jensen
Good to hear from you again as is true of all problems- the problem still exists it did not disappear while you were out riding around in helicopters. Thanks for the update. Good getting a post from you. Steve
The west is only shafting their own citizens, and digging their own grave and then hoping that their people will go to war to defend this fake, dishonest con system....
good luck to the 1 %....sorry..can´t help...won´t help....