Why Silver Has Smashed To New All-Time Highs Today

Silver is trading above $55 USD/oz. today and the question for many is why.

In summary, worldwide shortage. Silver shortage has raised its head and is towering over the world’s largest cash/spot physical silver market in London where billions of oz. of silver that can’t be delivered has been sold to unwitting cash market buyers and that has now become visible.

Over the last 38 years, the scale of London’s silver market leverage is nothing new. However, what is new is that on October 10, 2025 for 1.5 hours the London Silver Market stopped trading during trading hours as silver offered into the cash market dried-up showing the world exactly where the effective bottom of London’s silver vaults is located.

On that day, the world saw that when London vaulted silver holdings for exchange traded funds (ETFs) is withdrawn from total vault holdings, the remainder (~140M oz.) is merely vaulted in London and is unavailable to market. And that is a problem for London’s silver market that trades more than 700 million (M) oz. per day of silver in the cash/spot immediate ownership and delivery market where billions of oz. of such cash silver contracts remain open.

Commentary from bullion banks after October 10 indicated that much silver would flow into London from New York, Shanghai, and Switzerland and fill London vaults. Indeed 54M oz. of silver was shipped to London thereafter. However, in a world that has seen 7 years running of silver supply deficits, continuation of that flow is wishful thinking.

When London hit rock bottom on October 10, holders of these cash/spot contracts were alerted to the leveraged scam by the London silver market itself inducing more contract holders to demand delivery of silver, while they still can.

Are Overseas Markets Going To Help London Out Of Its Pickle? - Nope

In early 2025, some 235M oz. of silver flowed into New York vaults and ~ 140M oz. of that surge remains however demand for silver in NY is increasing and is reflected in a pricing structure which has not seen development of a sufficient discount to London prices to support movement of metal back to London. The total 150M oz. of silver in NY vaults that is available to market appears to be going nowhere at present despite growing distress in London.

Meanwhile, China’s demand for silver is accelerating and Shanghai market silver vault stocks have collapsed to 39M oz. reflecting a round trip to levels last seen in 2015 when the current Shanghai silver market was just getting started.

Figure 1 - Shanghai Market Silver Vault Holdings; source: GoldChartsRUs.com

London’s Billion Oz. Silver Problem Remains

The billons of oz. of silver cash/spot contracts for silver in London represents a problem that would take years of much higher silver prices and silver refineries worldwide running at maximum capacity to resolve. London’s silver problem is immediate.

Each week that passes now will see a compounding of London’s silver problem as the world further awakens to the London precious metals market fraud, created with oversight of the Bank of England, that has been used for decades to fix the price of gold, silver, platinum, and palladium in the world’s largest cash precious metals market.

While bullion banks and central bankers for decades were able to convert these metals into virtual assets that could be created without limit, central bankers were freed to blow credit and asset bubbles globally with loose monetary policy as gold and silver and their important inflation warning signals were switched off in London.

Those days are now over.

The consequences are about to become very real in every sense.

Best regards,

David Jensen