This isn't just volatility in my mind. It's the market exposing the shortages of physical silver, the frailty of the paper promises. Um this is something that um I think is just beginning and there's just far more demand for physical silver than there is um the availability and and the paper system is beginning to show great strains. People have accepted paper promises for a very long time and I I think that's coming to an end. And look, this is decisively decisively bullish for silver and other


precious metals. Silver prices have shattered all previous records, reaching an astounding $52.58 per ounce in London as of October 2025. A level never seen before. Not even during the Hunt brothers infamous market corner attempt in 1980. This milestone isn't a sudden spike. It's the culmination of eight consecutive weeks of steady gains across the entire precious metals sector. Gold has also surged to new all-time highs, signaling that this rally extends far beyond a single metal. According to Andy Sheman,


what sets this movement apart from past rallies is that it's not driven by speculation, but by a real physical shortage. London, now the epicenter of this unfolding crisis, is under immense delivery pressure, triggering what experts call a classic short squeeze, where the lack of available silver forces prices to extreme levels. The shortage has created a rare price disparity between markets, with London trading up to $3 higher per ounce than New York before stabilizing around $155 by mid-occtober. Such a gap is an


unmistakable warning sign. Investors are demanding real deliverable metal, not paper claims or leveraged contracts. Throughout 2025, silver has skyrocketed nearly 70% in London, outpacing gold's 55% rise. Analysts say this divergence marks a decisive shift away from fiat currencies and paper assets toward tangible wealth, assets that can't be created with keystrokes. The physical scarcity of silver has reached a point where it's no longer just a commodity. It's becoming a statement of financial


sovereignty in a system built on debt and promises. Sheman believes this surge reflects deepening mistrust in global financial institutions. With inflation fears rising, geopolitical tensions escalating, and confidence in fiat systems fading, investors are no longer merely trading silver. They're taking delivery and securing it physically. This behavior marks a fundamental shift in market psychology. As Shectman warns, if this trend continues, it could break the paper silver market entirely,


forcing a long overdue reckoning between the illusion of paper wealth and the reality of physical scarcity. >> I've never seen anything like this. This is the the term that everyone keeps throwing around is the word backwardation. Backwardation is an an environment that shows extreme delivery stress. Um uh it's unprecedented. This isn't just volatility in my mind. It's the market exposing the shortages of physical silver, the frailty of the paper promises. Um this is something


that um I think is just beginning and there's just far more demand for physical silver than there is um the availability and and the paper system is beginning to show great strains. People have accepted paper promises for a very long time and I I think that's coming to an end. And look, this is decisively decisively bullish for silver and other precious metals. But I think it's beginning t o show that the paper promises that this whole western system has been based upon is starting to


break. London, they have 140 million ounce float, yet they're trading 600 million ounces a day in contracts that technically are deliverable. What could possibly go wrong? There's over two billion ounces in paper claims out there on a float of 140 million ounces. So that's exactly what it is. Uh it's a situation where the the paper promises this rehypotheation is being called on the map. Um and you can see that look for example the lease rate in silver in London. When when you lease silver in


London, it would be something like you want to short a contract. You want to short the price of silver, but you don't have the metal. So, you have to borrow metal through leasing it in order to deliver the metal to short to drive down the price. Normally, that lease rate is somewhere in the neighborhood of a half a percent or 1%. Um, in in October, it's jumped up over 39% to over 39%. >> Wow. Um, and at the same time, we've seen silver rise since August when the lease rate was at about 1% or so, up to


$53 here. So, you see the price rising, the lease rates rising. We're seeing the exact same thing in platinum. But, but it's a situation where right now you have the spot market trading well above the futures price. In other words, buyers are very desperate for immediate delivery. And it's very rare to see this Adam silver. It's very rare. It signals urgent demand, depleted inventories, and really a systemic shortage of deliverable bars. And that's all because of rehypothecation. In other words, it's


getting called under the carpet. >> Okay. And and where is this shortage really manifesting most? Is it in London? >> Absolutely it is. I mean, you're seeing delivery stress on on that is exacerbating it on Comx. We've already seen 16 1.5 million ounces delivered in Kulix, adding to the limited vault supplies, but but yes, the the the main stress is in London right now and um much more so than than on ComX. Uh and and really it is in my mind the epicenter of where all of this could


really get into some serious problems where you're beginning to see margin calls for traders out there who are receiving a margin call because the price is going against their short position and the lease rate and the borrowing costs are so high that they're not able to get the silver to cover their position. And that's when things begin to get very very very interesting. What it really tells us is that buyers aren't just rolling over their contracts like they used to. They're standing for


delivery. They're demanding real metal. And these delivery numbers are well above normal. So, I guess if you could encapsulate it easily, it's that the rush for gold and silver is real. It's intensifying and markets just aren't trading paper contracts right now. The people want the real metal in hand. And in a world where paper contracts are vastly overstating the supply, the short-term implication would be liquidations and survival driven selling can trigger volatility. That's the short


term. Even sharp pullbacks. Medium-term, as far as I'm concerned, is that once this forced selling ends, the physical scarcity starts to dominate and silver sustains its higher prices, $50 plus. But long term, if confidence in this paper system collapses, like we're seeing, a structural reset could start to repric silver. That's what I'm seeing, $75, $100. And and I say that to you, and that's that's not pie in the sky because if you take the 45 year cup and handle that goes like this. The way


technical analysis works is the top of the cup 1980, the bottom of the cup the early 90s and again back up to 2011 again which is near the top of the cup and then formed another it's a double cup and handle. But the way that it works is once silver has broken through 50 which it has technical analysis would say you take the distance from the bottom of the top which was $46 from 50 to 4 and you add it to the top that would mean that the next target from a technical analysis standpoint is $96.


And I think that's exactly what you will begin to see where the market physically begins to exert itself over the paper shenanigans that we've seen for a long long time. The United States for the last 40 50 years has bet on a strategy of strong dollar and US bonds and service jobs where the rest of the world in particular the bricks and China have you know ha have not been ignoring the factories like we have not been ignoring commodities like we have. China as as a good example did the opposite. It built


factories accumulated commodities and gold and and now is really pushing away from relying upon the dollar. That is ultimately I think where we're going. Yes, exactly that right there.