ChainThink report, on October 12, the spot price of silver has risen above $50 per ounce, causing chaos in the London silver market, with a massive short squeeze leading to near-complete depletion of market liquidity.

Traders pointed out that any short positions in physical silver are difficult to find silver, thus forcing them to pay high borrowing costs for rollover. Some dealers have already booked cabin space on transatlantic flights to transport large silver bars, an expensive transportation method typically used for transporting more valuable gold.

Anant Jatia, Chief Investment Officer of the commodity hedge fund Greenland Investment Management, stated that he has never seen such a situation in the market, and silver currently has no available liquidity. This unprecedented situation has caused the premium of the London silver market over the New York market to rise from about 3 cents to over 20 cents. Robert Gottlieb, Managing Director at JPMorgan, noted that banks are now unwilling to quote prices to each other, resulting in significant spreads, which is also a reason for the lack of liquidity. (Jin10)