12 Silver Bulls Stampeding Through Banking Strongholds

Global Precious Metals Shortage Sparks Economic Upheaval as Financial Institutions Struggle to Meet Demand

These are 12 facts. I could list 100 but I will save the others for future SilverNews.

1. Bank of England in de facto default, quoting excessive delays on people standing for delivery, signaling they don't have the gold.

2. Shuibei, China's largest retail gold market, reports gold shortages.

3. Korean Mint can't produce gold for Korean banks.

4. The suspension of silver bar sales primarily affects KB Kookmin Bank, Shinhan Bank, Woori Bank, and NH NongHyup Bank.

5. Silver enters its 6th year of structural deficit, and this year there will be less than 800 million ounces mined because the all-in sustaining cost to mine in US and Mexico is too close to Silver’s spot price.

6. Systemic risk wanes with US hitting $37 trillion debt in 2 or 3 months.

7. The Federal Reserve kept the target range for the federal funds rate at 4.25% to 4.50% during its January 2025 meeting.

8. JP Morgan, arguably in the top 3 strongest banks in world, The Wall Street Superbank, JP Morgan, CEO Jamie Dimon is planning on dumping ONE MILLION SHARES... Yes, you read that correctly, ONE MILLION SHARES of JPM stock.

9. Commercial real estate disaster looming as about a trillion is up for maturity this year.

10. The floods in Florida and North Carolina, along with fires in LA, still haven't hit the calculus yet; government will have to step in.

11. Wars are still percolating with Russia, Gaza.

12. Trade wars with allies plus China will hit consumers fiercely.

As we stand at the starting line of what will become known as the great silver bull run of 2025, a series of alarming signals are flashing across the global economic landscape.

The interconnected nature of these events paints a picture of a monetary system under unprecedented strain, with precious metals emerging as the only safe haven plays remaining in the tool belt.

At the heart of this unfolding drama is the Bank of England, a so called bastion of financial stability for centuries, now facing a crisis of confidence. There are experiencing excessive delays in gold delivery requests thus they are in a de facto default, unable to meet its obligations.

This troubling development coincides with shortages at Shuibei, China's largest retail gold market, indicating a global squeeze on physical precious metals.

The ripple effects are being felt across Asia, with the Korean Mint struggling to produce gold for Korean banks. Major financial institutions, including KB Kookmin Bank, Shinhan Bank, Woori Bank, and NH NongHyup Bank, have suspended silver bar sales, further tightening the supply of physical metals.

In a move that underscores the gravity of the situation, China, home to the world's most astute economists, has taken swift action that many view as a canary in the coal mine for impending economic turmoil.

China’s National Financial Regulatory Administration has launched a pilot program allowing ten major insurance companies, including industry giants China Life Insurance and New China Life Insurance, to invest in gold for medium and long-term asset allocations.

This strategic decision, coming from the world's largest bullion consumer, is expected to broaden institutional demand and potentially bolster gold prices in China over the long term. The move signals a clear recognition of the need for stable, alternative assets in an increasingly uncertain global economy, highlighting China's proactive approach to safeguarding its financial interests.

Against this backdrop, silver enters its sixth year of structural deficit, with mining output expected to fall below 800 million ounces due to unsustainable production costs in key regions like the US and Mexico. This supply crunch comes at a time when demand for precious metals is skyrocketing, driven by economic uncertainty and geopolitical tensions.

The 13th Silver Stampeding Bull just entered the arena:

Let’s not forget that Mexico’s Morena party, before nationalizing silver, will have their “tax collecting” hands shoved in front of the faces of Silver miners like First Majestic, Newmont, Pan American, demanding higher taxes from extractive industry (silver) We have already received confirmation from silver miners in Mexico that this is fact not prophecy (and of course it aligns with our thesis) Mexico is ramping up their social programs as part of the Morena Party’s Mandate (free food, healthcare, education, housing) for the classes of people they believe have been “ the heirs of injustice”

The United States, grappling with a national debt approaching $37 trillion, faces its own set of challenges. The Federal Reserve's decision to maintain interest rates between 4.25% and 4.50% in January 2025 has done little to assuage market concerns.

Yesterday we wrote about the revaluation of Gold from its antiquated $42.22 on the dusty books of 1973. There is no way Scott Bessent is going to move the equation to revaluing Gold to $3,000 just to inject a measly $800 Billion on to the books. Here’s why

The daily interest servicing for a debt of $36.3 trillion at the current Fed Funds Rate of 4.33% amounts to approximately $4.37 billion per day. No one is stupid enough to adjust gold when it’s only a half year of interest payment alone. You would have to tackle the principal which is closing in on 37 Trillion to have any significance.

Meanwhile, the commercial real estate sector teeters on the brink of disaster, with approximately $1 trillion in loans maturing this year. OUCH!

Natural disasters have compounded these economic woes, with recent floods in Florida and North Carolina, along with fires in Los Angeles, straining government resources. The specter of ongoing conflicts with Russia and in Gaza, coupled with escalating trade wars with allies and China, threatens to further destabilize global markets.

Just today, Jamie Dimon, CEO of JPMorgan Chase, is reportedly planning to divest one million shares of the bank's stock. This decision, coming from the leader of one of the world's strongest financial institutions, has raised eyebrows and fueled speculation about the health of the banking sector.

The precious metals market has responded dramatically to these developments. Concerns over potential tariffs have driven premiums to unprecedented levels, with gold commanding up to $60 per ounce and silver reaching $1 over spot price in New York.

Major financial players, including JPMorgan Chase, HSBC, Goldman Sachs, and Deutsche Bank, have orchestrated a massive influx of physical gold and silver into the US, reminiscent of the rush seen during the early days of the COVID-19 pandemic. Recall what I wrote above about China’s pilot with 10 insurance companies. This is signaling to US institutional investors to get your house in order and follow suit.

As global supplies dwindle and traditional storage facilities struggle to keep pace with demand, the stage is set for a massive paradigm shift in the precious metals market.

Silver, always overshadowed by gold, is poised for a spectacular run as investors seek tangible assets in an increasingly uncertain world.

The combo of these factors – supply shortages, geopolitical tensions, economic instability, and a flight to physical assets – creates a perfect storm that will propel silver to new heights. As the global monetary system creaks under the weight of mounting pressures, Silver’s dual role as both an industrial commodity and a store of value positions it uniquely to benefit from the current crisis.

In these perilous times, silver will emerge as the unsung hero of the precious metals world, offering investors stability.

The great silver bull run of 2025 is more than just a possibility – it is an inevitability.

end of segment

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in related News:

• Cost to borrow GLD shares hit 10.45%

• Gold shorts are in big trouble

or put another way

• Gold lease rates exploding higher again

• London is almost out of unallocated physical.

• Next move up will be historic as unhedged shorts are squeezed.

• Silver will play CATCH UP BIG TIME

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