Wall Street is sitting on a silver powder keg, and it’s just waiting for a spark. Over 500 million ounces of silver — on paper — have been sold short by financial institutions that don’t actually own the metal.
That’s not conspiracy. That’s CFTC data.
They’ve built a synthetic market where the same ounce of silver is pledged over and over again, with the assumption no one will ever ask for delivery. And if too many do? The entire pricing structure — COMEX, LBMA, SLV — goes up in smoke.
This isn’t GameStop. This is bigger. This is the foundation of a global metals market that’s been running on leverage and delay tactics for decades.
The Hard Numbers
According to the CFTC Commitment of Traders (CoT) report for July 2025:
| Position Type | Net Short Ounces |
|---|---|
| Managed Money (Hedge Funds) | 180 million oz |
| Producer/Merchant/Swap Dealers | 330 million oz |
| Total Commercial Shorts | 510 million oz |
[Source: CFTC CoT Report – Silver Futures, July 2025]
That’s more silver than is mined globally in eight months. And yet these traders act like it’s a casual position. They’ve shorted metal they don’t own, can’t deliver, and hope no one demands.
How the Paper Scam Works
The silver market is fractional — like your bank account. It’s built on the assumption that no one will “withdraw” physical silver.
Here’s the setup:
- Banks sell futures contracts they can’t settle in metal.
- Investors roll contracts forward instead of taking delivery.
- The illusion of liquidity keeps prices suppressed.
But this isn’t theoretical anymore. The cracks are showing:
- Registered COMEX silver has dropped from 85 million ounces in 2022 to just 35.9 million ounces as of July 2025.
- SLV (iShares Silver ETF) has faced ongoing redemption pressure from institutional whales converting shares to metal.
- Premiums on 1,000 oz bars are creeping up — despite “stable” spot pricing.
The Leverage Is Insane
According to the Bank for International Settlements, total OTC silver derivatives (swaps and forwards) exceed $190 billion as of Q1 2025. That equates to nearly 6 billion ounces of notional silver — more than six times global mine supply.
| Metric | Value |
|---|---|
| Global Silver Production (2024) | 822 million oz |
| COMEX Silver Inventory | 275 million oz |
| Derivatives Exposure (BIS) | 6+ billion oz |
The same ounce is being sold to 10 or 20 buyers — and the system keeps working until someone calls in the physical.
The Spark That Blows the Fuse
There are several scenarios that could force delivery:
- A BRICS sovereign buyer (India or China) demands bars through Western ETFs or dealers.
- Industrial users (like Tesla, Samsung, or Lockheed) start securing future supply through direct purchases.
- A retail rush, like in 2021, overwhelms bullion dealers and forces wholesalers to tap COMEX.
Any of these breaks the cycle. Any of these forces shorts to cover.
And unlike gold, silver is too small a market to absorb sudden buying without massive repricing.
Silver Wars is dedicated to Safe Guarding the World's Silver Future.
We’ve Seen This Movie Before
The 2021 WallStreetBets silver squeeze wasn’t a failure — it was a preview. In less than 72 hours:
- SLV added 110 million ounces to its inventory (which may not have actually existed).
- The COMEX was caught off guard by delivery demand.
- Silver hit $30 and premiums exploded to $12 over spot.
Wall Street contained it with margin hikes, media gaslighting, and friendly fire from within Reddit itself.
But that was retail alone. Imagine the effect of sovereign-level accumulation hitting simultaneously.
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Schiff’s Take: The Short Sellers Can’t Cover
Peter Schiff has said for years: “There’s no exit for the shorts.” And he’s right.
If physical silver becomes the focal point of inflation hedging, de-dollarization, or just investor panic, the short sellers will be forced to cover in a market where:
- New mine supply is capped.
- Inventories are dwindling.
- Refining capacity is constrained.
They’ll try to cash settle. They’ll try to bluff. But when 500 million ounces of synthetic silver goes looking for real metal — prices won’t go up, they’ll reprice entirely.
What to Expect in the Fallout
When this bomb detonates, here’s what it’ll look like:
- COMEX force majeure declarations
- Massive cash premiums for physical delivery
- SLV share collapse and mass redemptions
- Silver price jumping from $35 to $70 in days
- Mining equities exploding, especially juniors
This is not speculation. It’s mathematics. The short interest cannot be covered with current inventory. Period.
Less Silver Than Ever
The media won’t talk about this. The regulators don’t understand it. But the data is all public. Wall Street is short over 500 million ounces of silver — and if even 10% of those contracts ask for delivery, the entire system collapses.
You can wait for that moment and FOMO in at $85. Or you can act now.
This isn’t fearmongering. This is a countdown.
Get informed at SilverWars.com. Before the detonation.