Behind the sharp rise in silver, the exchange may also be out of stock.
The New York Mercantile Exchange is facing delivery pressure.
Because historically in January, the exchange only had a physical redemption demand of 1 to 2 million ounces of silver, but this year it has surged to 40 million.
By March of this year, the silver delivery demand is expected to be between 70 million to 80 million ounces, but the problem is that the exchange has only registered about 110 million to 120 million ounces of silver inventory.
Currently, the entire precious metal community is panicking over the possibility that the New York Mercantile Exchange may face a delivery of silver without stock.
Because if it happens, it will undermine the existing credibility of the exchange and trigger a chain reaction that spreads to the gold and credit markets. In other words, the gold and silver you purchased officially may not be redeemable within the planned time.