Alert: Something Huge Just Snapped in London’s Silver Market… | Clive Thompson

Markets woke to a jolt. Gold steadied after weeks of relentless inflows, while silver abruptly slipped below $93.5 after failing to hold record highs near $96. The pullback followed easing geopolitical tensions, briefly reducing demand for aggressive defensive positioning. Yet the headline number barely tells the story: silver has still delivered a staggering 30 per cent return in less than three weeks of 2026. For seasoned observers, this volatility is not a reversal but a signal that stress inside the precious metals complex is intensifying rather than fading. According to Clive Thompson, a retired wealth manager and Swiss banker, the silver market is now confronting a structural dilemma that price alone cannot resolve. Industrial users, from electronics to solar panels and automotive manufacturers, consume silver in tiny quantities relative to the total cost of finished products. That reality makes them largely price insensitive. A production line does not stop because silver is expensive; it stops because silver is unavailable. This distinction, often overlooked, has become central to understanding recent market behavior.
For years, global mine supply of silver has lagged behind industrial demand. Mine output has remained stubbornly flat, constrained by the fact that most silver is produced as a byproduct of other metals and that bringing a new mine into operation can take five to ten years. Meanwhile, demand from electronics, photovoltaics, and electrification has risen steadily. What has changed is seller behavior. Early price increases encouraged weak holders to sell. As prices pushed higher, remaining holders became increasingly reluctant to part with their metal. This gradual tightening has left industrial consumers facing an uncomfortable uncertainty: not what silver will cost, but whether it will be there at all when needed.

Credits:
Palisades Gold Ratio
   • Clive Thompson: The Crunch on Physical Sil...  

This is not to be considered investment advice. You should always speak to a licensed financial adviser before making any investment decision.

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All statements in this Video, other than historical facts, are forward-looking statements. These may include expectations about Gold's future value; Silver's future value; US deficit projections; currency values; cryptocurrency adoption rates; money supply projections; future energy demand; future inflation rates; mining stocks' future value; future market trends; and other future events. Such statements are speculative, based on assumptions that may prove inaccurate, and subject to risks and uncertainties that could cause actual results to differ materially.


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