Silver prices surge past $33.6, exposing banks to massive losses from reckless shorts.

Silver Prices Surge: Banks Face Billion-Dollar Losses

TLDR:

• Silver prices surged over 6%, surpassing $33.6 per ounce.
• Five major U.S. banks face billions in potential losses from heavy short positions.
• Open interest in silver futures reached 141,580 contracts, nearly one year’s production.
• Short positions now estimated underwater by $1.3 billion.
• Critics argue short selling distorts silver’s true value amid rising industrial demand.
• Concerns grow over market integrity and potential supply crunch affecting reliant industries.
• Increased regulatory scrutiny is being called for to ensure fair market practices.

Source: Jpost

The silver market is facing a seismic shift, with prices soaring past $33.6 per ounce, exposing five major U.S. banks to staggering potential losses. Their reckless short positions, amounting to nearly a year’s worth of global silver production, raise critical questions about market manipulation and integrity. This behavior, driven by excessive ‘paper silver’ selling, risks distorting true market value despite soaring demand from key industries like electric vehicles and electronics. If silver prices continue to rise, these banks may be forced to buy back substantial quantities, triggering a financial crisis that could ripple through the entire market.