Silver Prices Surge, Disrupting London Market

According to BlockBeats, the current price of silver has risen above $50 per ounce, causing significant disruption in the London silver market. A massive short squeeze has nearly depleted market liquidity. Traders report that those holding short positions in spot silver are struggling to find the metal, forcing them to incur high borrowing costs to roll over their positions. Some traders have even booked transatlantic flights to transport large silver bars, a costly method typically reserved for more valuable gold. Anant Jatia, Chief Investment Officer of commodity hedge fund Greenland Investment Management, stated that he has never witnessed such a situation, with silver liquidity now unavailable. This unprecedented scenario has led to the premium of the London silver market over the New York market increasing from the usual 3 cents to over 20 cents. Robert Gottlieb, Managing Director at JPMorgan, noted that banks are now reluctant to quote prices to each other, resulting in significant price spreads and contributing to the lack of liquidity.