TechFlow, on October 12, according to Jinshi News, the spot price of silver has risen above $50 per ounce, causing chaos in the London silver market. A massive short squeeze has nearly completely drained market liquidity. Traders pointed out that any short positions in physical silver are struggling to locate supplies, forcing them to pay high borrowing costs to roll over positions. Some dealers have even booked cargo space on transatlantic flights to transport large silver bars—an expensive transportation method typically reserved for more valuable gold. Anant Jatia, Chief Investment Officer at commodities hedge fund Greenland Investment Management, said he has never seen the market in such a state, with silver now having no available liquidity. This unprecedented situation has driven the premium of the London silver market over New York from the usual approximately 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 extremely wide spreads and further exacerbating the lack of liquidity.
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