Silver Shortage Sparks Global Squeeze: James Anderson Shares Bold Market Outlook on CNBC
- Gold and silver prices finished the week strong, with gold around $4,246 per ounce and silver at $51.76, signaling continued bullish momentum in precious metals.
- A major short squeeze is unfolding in the London silver market due to a shortage of unallocated metal, record-high ETF allocations, and strong physical demand.
- India is playing a big role in today’s silver story, with soaring investor appetite, record premiums, and huge import volumes pushing the global market tighter.
- The ongoing squeeze has forced silver to be air-freighted from the U.S. to London to ease the pressure, highlighting how scarce readily available supply has become.
- This is the fifth straight year of silver market deficits, which means more silver is being consumed than produced or recycled, and inventories are being drawn down.
- Gold has broken through key resistance levels, and the world is revaluing it higher as central banks steadily boost their holdings.
- Silver isn’t just a monetary metal anymore. Its growing use in clean energy, electric vehicles, and high-tech makes it a critical industrial asset as well.
- Compared to gold, silver remains relatively affordable. For many Americans, stacking a few ounces or a kilo at a time is a practical way to build long-term resilience.
- Central bank gold buying continues at a historic pace, with emerging markets leading the charge and creating a strong price floor on market dips.
- With structural deficits in silver and expanding central bank demand for gold, both metals are positioned as key assets for wealth preservation in a changing economic landscape.
In a wide-ranging interview with CNBC’s Manisha Gupta, SD Bullion senior analyst James Anderson breaks down the London silver squeeze, surging physical demand from India, and why he believes gold and silver markets are entering a new era of price discovery.
Hello out there, before we jump into my 13 minute interview this week with CNBC India, in the face of raging silver demand currently going on there and in many other nations around the world.
I want to start with City of London silver market establishment consultancy Metals Focus' report this week about the ongoing 1,000 oz silver bar squeeze in London.
I am going to begin reading their report, but I will take a few breaks here and there to add further insightful silver market context.
My interview will follow, but let's get into their report first.
One of my SilverSqueeze Twitter X chat room buddies and a solid analyst and commentator on the precious metals market out of Hong Kong, Eric Young tweeted the following this week.
The Big C on CNBC hosted by Manisha Gupta, interviewing James Anderson senior analyst at SD Bullion. Full segment https://www.youtube.com/watch?v=gAqzXcAa7t4&t=608s
The spot silver and gold prices rose bullishly throughout most of the week's trading.
There was one desperate over night selloff during Hong Kong hours. and another large sell off to end the week on an options expiry day which is rather common as you likely know.
The spot silver price ended up on the week at $51.76 oz bid and the spot gold price closed up as well on the week ending at $4,246 oz bid.
The price action for gold on Thursday this week was so bullish blasting through $4,300 oz the Twitter X went into a tizzy with every Johnny Come Lately having a half baked gold take. The rug pulled crypto crowd was freaking out searching for new narratives talking about how gold stackers will eventually move into bitcoin. It was a circus clown show, embarrassing.
The spot gold silver ratio closed up on the week at 82.
We published a bunch of precious metals related videos this week on YouTube, be sure to check them out if you missed them.
Here’s Silver’s Path to $100 – Chart by Chart
Physical Silver Market Freezes — Dealers Stop Buying, Refineries Stuck?
This 20 minute video I did with the CEO of SD Bullion was a good insight into the simple math of how far and fast silver can run once the bull market really gets going to the upside.
If you like charts and data check that one out.
$50 Silver Is Just the Beginning… Here’s What’s NEXT
I am still stacking silver and gold bullion, and the spot price dip today was a perfect opportunity to grab more oz at price near $50 oz nominal growing support.
A look around at the world as silver is starting to run away from stackers increasing looking to buy silver bullion at reasonable nominal price points.
Here is a tube of 25 Royal Canadian Mint Silver Maple Leaf coins priced in fiat Canadian dollars, the image shot at a Costco (shoutout whoever took it out there).
You can see how up north they just busted nominal $6,000 oz gold in their devaluing Canadian dollar.
Silver in the ongoing bullion bull market, silver has now his hit new nominal record price highs in 158 of 163 full fiat currencies tracked around the world.
Only 5 outstanding remain, the fiat Swiss franc is one of the remaining final bosses of course.
I continue not paying so much attention to the ongoing nominal price movements with silver as I add ounces, but thinking more longer term.
Silver's current buying power of one share of the nominal S&P 500 near 6600 at the moment is about 129 oz to afford that AI dominated bubble market.
In 2011 this important ratio fell to a spike low at 25.
And in Jan 1980 it fell to get this, a spike low of 2.3 ounces to buy the S&P 500 at the time.
We are still at nose bleed levels, well above the 1929 highs, with the bag holders on the left of this chart.
Gold continues mooning in nominal price as it's becoming more obvious by the quarter that the world's rerating of gold sharply higher is underway.
Even the once tiny gold warehouse holding SHFE has obviously made a policy shift late last year, and its gold inventory levels are climbing walls (of course 40 tons of gold pictures here is dwarfed still by the more physical trading SGE which typically physically delivers that amount per week of late).
The fact that all four precious metals, coffee, and cattle are outperforming many's favorite pet asset class should be a sign that a phase transition is underway. They are called commodities, and they are being led by the precious ones.
Silver is not for the faint of heart especially if you trade it day by day. But for the long term silver bullion stackers out there the fundamental driving winds are at our backs.
With this the 5th year of silver market supply deficits with no end in sight, the clock is ticking on the shorts and the efforts to keep silver prices in check.
To close out this week, I want to highlight a good clip of precious metals analyst Nicky Sheils speaking with the fellas over at "The Macro Dirt Podcast" this past week.
Followed by a fun whip around highlight of some of the craziness seen on the Silver Gold related Twitter X feeds this week
Huge Demand for PHYSICAL GOLD with Nicky Shiels
The Macro Dirt Podcast - https://www.youtube.com/watch?v=ZrSuJjH-d_I
References:
CNBC TV-18 interview with James Anderson, 2nd half
https://www.youtube.com/watch?v=gAqzXcAa7t4&t=608s
The SILVER FREEZE Has Begun — Dealers & Refineries Stuck
https://youtu.be/zqwn821jIZ8
$50 Silver Is Just the Beginning… Here’s What’s NEXT
https://youtu.be/8eQpeWNl5r0?si=GWuaalWYbtKKK55r
Is Silver Going to $100?
Here’s What The Charts Scream
https://www.youtube.com/watch?v=RH4qkXZ91CE&t=4s
Huge Demand for PHYSICAL GOLD with Nicky Shiels
The Macro Dirt Podcast - https://www.youtube.com/watch?v=ZrSuJjH-d_I
