It’s been a while since I’ve posted about the Silver Squeeze & I think we’re long overdue for an update.
Faithful believers will be pleased to see that we have already achieved a year-to-date gain of over 80%, with much of it coming within the past couple of months.
However, as has been frequently noted, silver’s price action tends to mimic that of gold to a certain extent. Generally, gold moves higher, but silver lags, then eventually explodes higher to not only meet, but exceed, gold’s performance. With gold recently performing very well, first passing its all-time record high of about $2000 & then doubling that, surpassing $4000. As of right now, the price sits at about $4200 but has nearly hit the $4400 mark in recent days.
Silver has not yet reached a doubling of its all-time high. Therefore, if we can rely on its historical performance, we can not only expect it to double its current high of about $50, landing at about $100, but that would only amount to half of what gold has done. Therefore, many are calling for a jump even higher to $150 or $200.
This would not only meet historical precedent for performance but land us at what many call an inflation-adjusted equivalent to the approximately $50 price that it reached in 1980.
As Mike Maloney has said, if we were to compare current pricing to 1980 pricing, even at around $50, silver is only equivalent to about $12 in 1980 USD.
So when will this happen? When will we finally get the long-awaited revaluation? An increasing number of voices from the finance world are calling for this jump as soon as within the remainder of this year.
With only about two months left in 2025, that means we can reasonably expect a profound move within the span of the next approximately nine weeks.
Further rate cuts (the next of which is expected on October 29th) from America’s Federal Reserve Bank, which have help propel us to the current price will certainly help further upward price action, but while will likely shoot the price higher into the stratosphere will be a failure of delivery, likely out of London.
What does failure of delivery mean? Silver is traded not physically but in futures contracts. However, it has come to a point where nearly 400 contracts are being distributed to buyers for every one ounce of silver that physically exists in inventory. An increasing number of people are growing wise to this & requesting physical delivery so that they don’t get left being a bag holder. Persistent “backwardation” serves as a testament to this.
This means that this paper game can no longer continue, as inventory simply will not allow it. When more & more people are refusing contractual silver & want delivery of real, physical silver, they simply do not want the risk of trading paper. It is said that the LBMA is not only empty but that they are flying to China to load up on silver there in order to replenish as much as they can of their dwindling physical supply, to little avail.
However, it is said that China has shut down retail physical sales for the most part, with only silver priced above $128 being available for purchase at all.
Londoners must be exceptionally desperate to be paying over double the spot price in China to replenish their supply to continue the illusion of solvency. I suppose merely paying a little over double spot price is a much better deal than paying at a truly adjusted ratio of 400 times the current spot price.
In their desperation, they are attracting all sorts of attention. What previously worked when nobody was looking is instead raising eyebrows & wallets to drain all of the physical silver possible as fast as possible to not only profit from this but to survive through impending the financial implications.
Long lines to buy silver & gold are seen throughout
China,
India,
Vietnam,
Singapore,
& Australia for retail buyers of bullion.
The lines exist in Japan as well, but due to the orderly nature of things, they are better hidden here than elsewhere. For example, when you go to Ginza Tanaka, you are issued a ticket & told to come back in a certain number of hours. Therefore, the lines are not so much seen running outside of the door & down the block, but if this orderly system was not in place, you certainly would see such a thing.
But cracks are showing by numerous online retailers selling out or halting sales.
It can also be said that the predicted price of $150 to $200 might be extremely conservative. I have written on this before, but to recapture the essence, I will briefly explain it again. Whilst it is true that silver has been trading at a ratio of 400 paper contracts to one ounce of silver, merely adjusting the price up 400 times does not give you the true price. The reason for this is silver has throughout history been priced comparatively to gold. However, gold is also manipulated in the same way, with approximately 130 contracts being traded for every one ounce owned. Therefore, it makes sense to first look at an adjustment to the gold price & then look at the gold-to-silver ratio to determine silver’s real price. If we were to do that here, we need to multiply gold’s approximately $4400 price by 130 times. Then we would look at the historical average of silver-to-gold ratios, which brings us to 7 to 1.
In other words, for every one ounce of gold, it takes seven ounces of silver to be of equivalent value. But even that is not adequate because we can only look at above-ground silver. While more silver exists in the earth, from the time a mine is found to the time it becomes operational can be upwards of 10 years. With silver having a running deficit of approximately 200 million ounces every year for the past five years with no immediate relief in sight, this has driven the amount of above-ground silver to be equivalent to a one-to-one ratio with gold.
As more & more industries, including the technology sector, military sector, pharmaceutical sector, etc. all require an extreme amount of silver just to remain operational, given all these contributing factors, seeing silver truly revalued thousands of times over to a price in the thousands or even tens of thousands is not out of the realm of possibility. The paper contract games have served the Comex & its counterparts well for as long as they were able to keep them hidden, but those days are over, & the true price of silver could make itself apparent by the end of the year.
I’m not a financial advisor & this is not financial advice, I’m just heavily invested in silver.
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