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Gold and Silver Deliveries Escalate – A Warning for Currencies?

The article warns that escalating physical deliveries and sustained backwardation in the gold and silver markets are straining futures markets and raising systemic risks for paper currencies. Silver faces a sixth consecutive annual supply deficit, projected to total ~866 million oz. by end-2026, with China controlling roughly 70% of bullion supply and recent U.S. designation of silver as a critical mineral tightening availability. Retail and central-bank hoarding (China reportedly bought ~800 MT in Q1 2026), double-digit spot premiums over futures, and record-low COMEX open interest have forced market participants toward physical metal and mining equities. The piece highlights miners and silver ETFs as potential beneficiaries and discusses broader implications — from possible COMEX contract changes to speculative proposals to back U.S. debt with precious metals — signaling bullish pressure on precious-metals prices and a negative signal for fiat currency credibility.

Category

Gold

Sentiment

Bullish

Event

Market data

Reading time

1 min