Main reason (the real trigger):
👉 PHYSICAL #SILVER IS RUNNING OUT — and the paper market just broke.
For years, silver demand has been higher than supply. Now, physical buyers are forcing delivery, exposing a massive shortage hidden behind paper contracts.
What’s driving the explosion (quick & clear):
• Multi-year supply deficit — 678M oz missing over 5 years
• China tightened silver exports → global supply shock, Shanghai trading at big premium
• Industrial demand surging (solar, AI, data centers, electrification)
• Paper silver leverage ~350:1 — too many claims, not enough metal
• Lease rates spiked near 39% → physical silver extremely hard to borrow
• Backwardation appeared → buyers want silver NOW, not later
• Refinery shutdowns reduced usable supply
• ETFs absorbed 95M+ oz, removing metal from circulation
• Silver declared a strategic material (2025)
Bottom line:
Silver is no longer priced by paper contracts.
It’s being priced by who can actually get the metal — and there isn’t enough.
🥈 When physical scarcity meets a small market, price doesn’t rise… it explodes.
