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$100 Silver Could Break the Market |
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$100 silver!... How silver could "break" the financial system… 🧨 Are you aware of the looming Jan. 28th Ultimatum? Well, that's the one date you MUST have circled on your calendar. Why is Jan. 28 so important to you? Get the crucial details here.
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Dear Reader, |
Glittering gold seizes investor awareness, and for cause. |
Gold has breached the psychologically critical $5,000 defense line. And it is hot to press on. |
Freedom Financial News contributor Jim Rickards believes gold is destined to attain the $10,000 mark… or higher. |
"Once gold breaks $4,000," argues Mr. Rickards, "the sky's the limit." |
At $5,000, the sky is even closer within reach: |
It would not surprise me, not even a little bit, to see $10,000 gold before the end of 2026. I think we will. |
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Just so. Yet have you taken recent notice of gold junior cousin — silver? |
Silver's on a Tear |
The silver price went spreeing a lovely 147% in 2025. It has leapt 40% since this year's onset alone. |
And this past Friday the silver spot price scaled $100 for the first ever occasion. |
50 silver ounces will presently fetch one gold ounce. Last April, that figure came in at 105 ounces. |
There you have the flavor of silver's grand run these past several months. |
Why is silver so far up and away? |
Follow the gold price and you will find the silver price in its shadow. Thus the impetus behind gold's march to $5,000 is largely the same impetus behind silver's march to $100. |
Silver is more industrially useful than gold so the impetus is not identical. Yet it is plenty close. |
Is there nonetheless an additional gust forming behind silver's back… that is poised to propel it beyond gold's domineering shadow? |
The answer is yes. And it involves the "paper" silver market. |
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The "Spot" Price vs. the Paper Price |
I referred to silver's spot price. The spot price is the price you must meet for immediate delivery today, payable on the nail. |
The paper silver market relates to the futures market. That is the agreed-upon price for future delivery at a specified date. |
The two prices are not necessarily mirrors. |
And when the spot price exceeds the futures price… it often signals an acute supply shortage of silver… or skyshooting demand for silver. |
That is the condition that presently obtains. |
A silver futures contract generally commands 5,000 silver ounces. |
Yet the quantity of "paper" ounces in the futures market vastly exceeds the quantity of physical ounces. |
That is, the quantity of physical silver is vastly insufficient to settle existing contracts. |
The promise is there. Yet there is inadequate substance behind it. |
Hence it is paper silver. The silver ounces exist only on paper. |
Musical Chairs |
In normal times, contracts expire without the holders of these contracts demanding physical redemption. |
Thus the limited quantity of physical silver is adequate to needs. |
The difficulty arises when too many contract holders demand physical redemption upon contract expiration. |
Imagine you check your coat with the coat-check girl upon entrance to a night club. She issues you a ticket for your coat. |
Yet unbeknownst to you, the night club issues four additional claims upon your coat. |
Unless you are first to exit, one of the other four claimants will depart the premises with your coat cloaking his back. |
Or imagine a game of musical chairs with five participants circling one lonesome chair. Once the music halts, only one participant will sit down in the chair. |
So with the silver futures market. And the present imbalances between paper silver and physical silver threaten to "break" the financial system. |
Silver Might Be "Breaking" the Financial System |
Phoenix Capital Research: |
The price move in silver is beyond macro fundamentals. In fact, it appears silver might be "breaking" the financial system to a degree… |
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The bulk of silver trading takes place on the futures market…The most popular exchange is the Chicago Mercantile Exchange or CME… Specifically, every silver futures contract represents the right to buy or sell 5,000 ounces of silver… |
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The current silver contract expires on March 27th 2026. And the last delivery day for physical silver is March 31st. |
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As I write this, the current open interest for silver on the CME is 150,200 contracts. With each contract representing the right to buy or sell 5,000 ounces of silver, this means that the current open interest for silver represents 751 million ounces of silver. |
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Therein lies the central dilemma: |
The problem with all of this is that according to the CME's registry there are 440 million ounces of silver located in its depositories. |
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Put another way, there is 1.7 TIMES the amount of actual silver the CME has stored in various depositories trading in the open market. So many of these contracts are in fact backed by NOTHING. |
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This is where things get dodgy. |
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A MAJOR Deal |
Please, good sir, do tell: |
If a significant portion of the current open positions in silver opt for physical delivery, there is a chance the CME would face a potentially systemic issue. After all, how do you explain that you were letting people bet on an asset that wasn't actually there to begin with?... |
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This is why silver prices are going parabolic. The financial system is beginning to smell the proverbial "blood in the water" for the CME. |
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This is a MAJOR deal… And it has the potential to become a SYSTEMIC issue. |
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Yet how? |
You see, the CME doesn't just trade silver futures, it trades everything from bonds to stocks to commodities and more. The average daily notional value of CME contracts traded is $11 TRILLION, with the annual trading volume exceeding $1 QUADRILLION (1,000 trillions)! |
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So… if it turns out the CME is permitting trades WITHOUT actual assets backstopping them… then the door opens to a collapse in the CME as traders panic, realizing that they couldn't take delivery of the items they're trading even if they tried. |
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Though the Heavens Fall |
In conclusion: |
How this plays out remains to be seen, but I wanted to warn you that one of the main pillars of the current financial system (the futures markets) is beginning to crack… there is a potential systemic risk that could make things ugly. |
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Nor do I know how this particular predicament will resolve — or if it will resolve. |
It may pass without incident… as many potential crises pass without incident… or it may not. |
Yet this market rests upon what I consider a gigantic fraud, a gigantic swindle, a gigantic falsehood. |
I am against gigantic frauds, gigantic swindles, gigantic falsehoods. |
Thus I am not against the paper market's collapse — though the heavens may fall. |
And given the enormity of this market… the heavens may indeed fall. |
Brian Maher |
for Freedom Financial News |
P.S. Most investment banks predict gold will cross $6,000 an ounce this year. |
Some analysts expect it to soar as high as $10,000.
Please read the following Gold Breakout Alert from out friends at Stansberry Research |
But if you 're thinking of buying gold this year, do this first. |
In short: There 's no question 2026 will be a year of great uncertainty, especially as we get closer to the midterm elections. |
And there 's no question gold could skyrocket as a result. |
But I have an unfortunate truth to tell you... |
Most folks will likely run out and buy bullion or mining stocks. |
Sadly, these folks will likely miss out on the biggest gains. |
That's because there's a much, much better way to invest in gold right now. |
Most people know nothing about it. |
But as I'll show you, if you follow this simple approach, which has nothing to do with bullion, ETFs, or mining stocks, the gains can be absolutely incredible. |
In one period, it turned every $5,000 invested into more than $1.6 million. |
Which is why we 're sounding the alarm on gold in 2026. |
And why it 's critical for you to see our imminent gold prediction before Jan. 28 |
Regards, |
Matt Weinschenk
Director of Research, Stansberry Research |
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This ad is sent on behalf of Stansberry Research, 1125 N Charles St, Baltimore, MD 21201. If you would like to optout from receiving offers from Stansberry Research please click here. |
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