LONDON IS EMPTY | Silver Vaults Hit 'CRITICAL LOWS' (Lease Rates Explode)
The silver markets began running a deficit 5 years ago in 2020, by 2022 you could predict what would happen which is what I did on this thread. Morons and idiots made fun because the financial collapse did not happen in a month. But as sure as an infestation of termites will destroy a house it was equally sure that the silver market would also suffer the same demise. In 2022 silver was $18 an ounce. Today, if you want to buy physical silver (forget paper, they have 600 contracts for every real ounce of silver) you must pay $80 an ounce. The vaults are empty and our biggest banks are caught in a naked short squeeze.
The people taking possession of silver are not speculators, these are central banks and industrialists who need the silver for their manufacturing.
In a speculative bubble prices don't make sense. The price of a tulip bulb can equal the price of a house. But that is not the case here. They cannot make solar panels without silver, and although all solar panels collectively use a lot of silver, on an individual basis it isn't that much. Same with smart phones and AI data centers. The consumption causing the deficit for the last five years was industry. But then everything changed, the missiles being used in all these wars take 1kg of silver each and Samsung just made a far superior battery for EV's and it also requires a lot of silver per car. Now there is panic, they can do the math and they realize there will not be enough silver to go around. The US made Silver a strategic mineral. This means in a war they can seize the silver. Four of the five biggest silver producers have either suspended all exports or have suspended exports to the west. Meanwhile China is paying $5 over the spot price from the Comex for silver, this is creating an arbitrage where you can buy the silver, take delivery, ship it to China and make an instant profit. It also means that producers are selling to China, not the US or Europe.
In addition to the industrial use for silver Central banks are buying up gold and silver as they are dumpint US bonds. This is because they are moving from the US dollar as a reserve currency to a gold backed security. What is happening to the US dollar is just as sure as what was happening to silver.
The Comex and LBMA are in such dire straights they are doing all kinds of things to prevent a total collapse and bankruptcy. But by doing that they are letting us see that all of their manipulation of the market has come to an end, it is certain that we will have a major bank run. Silver surpassing Apple as the third largest investment by market cap is the signal that the US economy and stock market is in the process of collapsing right in front of our eyes. In the last three years silver has quadrupled in price, but in the last six months it has doubled, that is exponential growth.
It was clear that $65 an ounce was a line that the big banks in the US tried with all their might to prevent being crossed, but now silver is trading as high as $80 an ounce. That means in just ten days these banks have lost $15 billion on their naked shorts and they haven't been able to reduce their exposure as the ratio of paper silver to physical is not 600:1.
