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 their accountant will be credited JP Morgan the dory will be shipped off for refining to guess where China so you had this sort of thing whereby all the silver from particularly from these marginal producers was going up to China and it's been doing that for ages and ages and ages so China had huge great hidden stocks still has and the way in which it was controlling the price was you know with JP Morgan and others it was managing the paper price if you like the derivatives through the derivatives

and at the same time more lately um as demand has exceeded supply I mean looking at the silver institutees um uh numbers uh they have been the marginal supplier if you like into the global market uh in order to suppress the price now the reason the price has taken off basically is that China stopped doing it a misunderstanding I mean it's just just amazing how uninformed uh the investment community as a whole is I mean obviously you got gold bugs and you know that they're all cheering from the rooftops you know about gold

silver whatever but let's let's let's try and um you know sort of be rational about it I think that's the important thing um I'll start with silver because there two stories really you've got what's going on in the derivatives market and you've also got the overall economic background so I'll start with silver because that's really quite interesting. Um yeah, I mean silver has risen very sharply and um in 2026 it's likely to continue to rise. Now the reason for this is that we've uh

suppressed the price for a very very long time. Um >> it is an industrial metal. I mean the idea that this is a monetary metal is sort of way off in the midst of history. And I think um I'm not saying that it can't come back as a monetary uh metal. I'm just saying it's unlikely other than in a marginal sense. What we're seeing right now is not the global public suddenly deciding that silver is about to return as money. This is not a mass psychological shift where people believe silver will replace fiat

currencies overnight. Instead, the forces driving silver today are far more structural and far more powerful. There is a deep historical affinity for silver in parts of Asia. China, for example, operated on a silver standard well into the midentth century. That legacy still matters culturally. Even across the Middle East, silver circulated as money until surprisingly recently. In the late 1960s and early 1970s, coins such as the Maria Teresa dollar were still widely used, melted down, and repurposed into

jewelry. Silver was not abstract wealth. It was tangible, trusted value. That historical connection means potential demand is enormous. But it's important to be clear. This is not what's driving the current rally. For decades, silver was deliberately cheap. Unlike gold, which retained its monetary status, silver was pushed into the role of an industrial input critical for electronics, energy systems, and manufacturing. At the same time, prices were suppressed by a combination of abundant above ground supply and

aggressive paper market activity. Mining investment declined, exploration slowed, and production quietly fell behind demand. The market became fragile whether investors realized it or not. China played a central role in this system. For years, silver from marginal producers flowed east. Miners sold their output through large trading houses. Banks credited accounts and the physical metal was refined and shipped, often directly to China. While western markets focused on derivatives and paper pricing, China accumulated vast physical

inventories, much of it hidden from public view. This arrangement allowed China, in coordination with global financial institutions, to influence the paper price while simultaneously stockpiling physical silver. As supply tightened globally, China increasingly acted as the marginal supplier, releasing metal just enough to keep prices contained. And then something changed. China stopped. Much like rare earth elements, silver began to be viewed not as a surplus commodity, but as a strategic resource. Exports were

tightened. Domestic stockpiling was prioritized. China ceased acting as the invisible buffer that had stabilized prices for a generation. That single shift altered the entire pricing dynamic. With supply deficits already emerging, the removal of China as the marginal seller exposed just how tight the silver market had become. Prices were no longer being capped. The long delayed repricing began. At the same time, a powerful new demand driver emerged. Technology photovoltaics are already a massive source of silver

demand. But what has truly changed the outlook is the next generation of electric vehicle batteries. New designs scheduled to enter production in 2026 use dramatically more silver per vehicle. Instead of grams, some configurations require hundreds of grams, even approaching a kilogram per car. These batteries charge in minutes and deliver ranges close to a,000 m. Initially, they will appear in luxury vehicles, but adoption is expected to accelerate rapidly. The math is staggering. If even 20% of electric

vehicles adopt this technology, the silver required would equal an entire year's global mine supply. That level of demand simply cannot be met at current prices. This is why silver's move is not speculative. It is not emotional and it is not temporary. Silver is being repriced because years of underinvestment, strategic stockpiling and technological acceleration have collided. Just as the mechanisms that once suppressed prices have disappeared, what we are witnessing is not a rally. It is a structural reset. So you know

what's happening basically is that everybody who needs silver as part of a production process uh is finding that you know my god we better grab what we can and of course this has created a crisis in the derivatives markets. Um at the same time there has been a sort of modest increase in in uh ETF ownership uh and so this has eaten into the free float free float in London and also uh comx I mean the deliveries coming out of COX are quite remarkable something like500 15,000 tons this year has been stood for delivery on

COX now we can't say for certain that all that is um industry uh using um comx as the largest silver mine in the world. But I can I can I can uh um be pretty certain that there is a lot of industrial demand because you know if if you're um ramping up production you know you go along to the refiners you say um when can I expect some silver I don't care what price uh the refiner will say back of the queue. Uh so um you know they go to Comx and they go to London. They go to the markets. They're cleaning

out the markets and that's going to continue. It's bound to continue. And it's creating the most massive squeeze on the derivative system. It's not just in silver. It's also in in platinum. I mean platinum has actually moved uh faster in the last year I think than silver has. Um again that got very very oversold. So um I think the outlook for silver and platinum and also industrial metals generally in 2026 is going to be for higher prices. But I think in silver's case this squeeze I think has the

potential to go a lot further. I'm not going to say how much further um but you can be sure that we're going to see far higher silver prices in 2026. Do like, share, comment and subscribe to this channel.