London's Silver Problem Is Distressing Global Silver Availability
A 62,000 Tonne Silver Problem
As silver’s price has continued to storm higher, traders flummoxed by the lack of a meaningful price pull-back or consolidation to date are missing a key point: the intense global run into physical silver appears to be underpinned by London cash/spot contract holders departing the City of London’s Silver Market and seeking physical silver delivery in other markets.
The departure of holders of claims parked in paper silver promissory notes into securing physical delivery in global markets that have available physical silver is rapidly stressing the global silver market due to the sheer scale of London’s leveraged monstrosity.
The Scale Of London’s Silver Problem Speaks Of A Rapidly Increasing Acute Global Silver Shortage
The London market, the world’s largest physical silver market, seized-up on October 10, 2025 despite London vault data indicating a ‘float’ of 140 million (M) oz. (4,355 tonnes (T)) of physical silver in London not claimed by Exchange Traded Funds (ETFs). This market seizure marked the bottom of London’s silver barrel alerting the metals world that this remainder was simply held in London and not available to market.
Latest market data indicate that London vaults at the end of December held 185M oz. (5,750T) of silver that were not claimed by ETFs implying a 45M oz. (1,400T) silver buffer raising London’s nose above the water line.
That London’s silver market may have 1,400T of silver available to market is terrific. However, the scale of the visible London Silver Problem indicates that intensifying buying of physical silver globally can be expected.
London trading data indicates that gross trading volumes in the London Silver Market surpass 700M oz. on an active day. This translates into an estimated 2 billion (B) oz. or 62,000T of cash/spot market claims for immediate silver ownership standing in the London market.
After the London Silver Market delivery and trading disruptions of 2025, some of these London silver contract holders have noticed contributing to the global rush to secure physical silver.
UBS’s projected 300M oz. (9,330T) silver supply deficit for 2026 can quickly become 600M oz., 900M oz. or more as a portion of the London silver cash/spot contract holders recognize that they hold paper and not metal and start to vote with their feet. Increasing CME COMEX trading margins is not going to change this flight to security by burned London contract holders.
London silver claim holders are rapidly learning what has been seen over and over again in markets that trade unbacked promises in lieu of actual assets.
Best regards,
David Jensen
The mainstream media's "silence" regarding gold and especially silver is remarkable.
They're spreading the usual drivel, typical chart analyses, bubbles, etc.
No fundamental analysis whatsoever.
The major players seem to want to cover up the explosion in gold and silver prices.
One can certainly speak of existential problems in the financial sector. And thus prevent public panic.
Private demand for silver is apparently rising everywhere. This has multiplied silver's potential as money, a means of payment, a medium of exchange, and a store of value.
It seems to me, therefore, that private investors, due to the lack of investment opportunities in gold and silver, are turning back to BTC, BCH, and Monero. BTC is rising again. Monero has risen from $400 to $600 since January 11th. These three are the only decentralized cryptocurrencies.
As expected, the resilience of cryptocurrencies is being significantly strengthened. I had anticipated this. LoRaPay is being introduced. LoRa is a radio standard. Originally designed for IoT, LoRa's long range and very low power consumption have led to its repurposing as a crisis-proof communication technology. This was followed by LoRa Mesh, enabling data networks outside the confines of the state-controlled internet. LoRaPay, for example, allows commerce without government interference.
The BIS quarterly report is timely and relevant to the current situation.
The BIS sees itself as the central bank of central banks and the supreme supervisory body, signaling risks.
The BIS also downplays the rise in gold and silver prices. On the other hand, they report strong repo movements, naturally without mentioning any connections.
All in all, everything points to a "Great Reset" and a silent, albeit public, feud between East and West.
I think negotiations between the largest financial market participants and economic blocs are certainly in full swing.
The 470-fold paper silver fraud cannot go unpunished in these circles without accusations, action, and demands – I simply cannot imagine it happening. Who demands what, who has to give in, and how will they give in?
BRICS seems to hold the upper hand in terms of physical assets.
The West holds the upper hand in terms of the artificial financial system and its unprecedented artificial complexity.
Since neither East nor West can afford a collapse of the financial and monetary system, an agreement must be reached.
But the hawks, emotionally overexcited and lacking empathy, can also make catastrophic mistakes. Perhaps this is why the flames under the pot have been turned up high again in Iran.
The East is again at an advantage here, because they have lived under the repression of the Western financial and monetary system for years and decades AND have already begun to cooperate outside of these systems.
The City of London Corporation must essentially be eliminated. It is the spider at the center of the entire financial industry's web.
https://www.bis.org/publ/qtrpdf/r_qt2512.pdf
And it seems probable that the situation can only get worse as producers sell their metal to the highest bidder - increasingly China which also now has export restrictions to make matters even worse. Why would a producer sell through the LBMA or Comex system when they can get higher prices elsewhere?
There is also the possibility that producer nations, increasingly understanding that they have been screwed for decades, will start controlling exports or even nationalizing mines. This does, I think, suggest that caution should be applied when investing in pure Silver-mining equities invested primarily in countries other than Western nations. That applies especially to LatAm countries after recent geopolitical events and threats.