Listen to what the silver bulls are saying—"Silver shortage, silver shortage," they shout every day.

But this logic doesn't add up: if silver were truly in short supply, why is there a built-in 3% annual holding fee in the spot market? For a genuinely scarce commodity, this fee should have disappeared long ago.

Let's also look at the futures market—why can't the near-month contracts outperform the December 2026 distant-month contracts? Normally, tight short-term supply would push up near-month prices, but the current trend is the opposite.

Don't get me wrong, silver is indeed an important category in commodity allocations. It's just that those promoting a "supply crisis" need to speak to these market details. Price mechanisms don't lie.