If Silver Is In Shortage, Why Is It So Cheap?

Today I've got something really interesting to share with you. Something that might explain why silver is so historically cheap and why that might not last much longer. You already know that silver is used in just about everything, from solar panels and electric vehicles to military tech. Demand is growing and supplies are tight. So why the heck isn't the price exploding? I mean, every other asset has.

Some say silver is headed to triple digits. In fact, Brian Kim over at Clear Value Tax just said exactly that. I am investing in silver, so I'm buying physical silver and I'm buying silver on the stock market as well. I believe, and this is just my opinion, that silver will reach the triple digits. So it's just a question of when.

But here's the thing. What if I told you silver might not be priced fairly? I'm going to show you how the price is being manipulated, who's behind it, and why I think it's allowed to happen. And if you've ever wondered why silver seems like the most unloved asset in the world, you're not imagining it. Let's break it down.

The Supply Deficit Is Real

Let's start with the simple fact: Silver has been in a supply deficit for seven years straight. That's not my opinion. That's straight from the Silver Institute's 2025 World Silver Survey. They've tracked the market running a deficit every single year since 2019. That includes a projected 187 million ounce shortfall in 2025 alone.

Stack that up year by year, and we're looking at a cumulative deficit of over a billion ounces. And the pressure isn't easing up. Industrial demand keeps growing—solar panels, electric vehicles, electronics, military tech—silver is used in a lot of things. Just solar alone used more than 200 million ounces in 2024.

So Why Is the Price Still Low?

Here's the big question: If silver is in such short supply and demand is continually rising, why in the world is the price so low? Gold's hitting all-time highs, Bitcoin's flying, and stocks are breaking records, but silver, the unloved white metal, has been stuck in reverse.

Brian Kim thinks silver is a great buy right now. Honestly, when you look at the fundamentals, he might not be wrong. Here are the key reasons why I'm investing in silver:

👉🏻 The demand for silver is greater than its supply.
👉🏻 Silver protects you from inflation.
👉🏻 Silver has a proven history.
👉🏻 I believe that silver is undervalued.

The Real Story: Price Manipulation

But this isn't just a supply and demand story. It's a story about control and how the price is being or might be deliberately held down.

Most people think silver trades like oil, copper, or any other commodity. You know, supply goes down, demand goes up, and prices rise. But silver doesn't play by those rules. The price you see on CNBC or your brokerage app isn't based on physical silver. It's based on paper silver, contracts traded on exchanges like the COMEX.

And here's the kicker: For every real ounce of silver, there are dozens, sometimes over a hundred, paper ounces being traded. Big financial players can move the price without ever touching the real thing. It's like controlling the price of diamonds without ever owning a single diamond. These paper traders aren’t stacking bars; they're placing bets, and many never plan to take delivery.

Because the silver market isn't that big, a few massive trades can move the market hard and fast.

Tricks Used to Control Silver Prices

One trick they use is called "spoofing," placing giant sell orders to scare the market, then canceling before it executes. The CFTC says it's illegal, but guess what? They say 87% of manipulation cases in the precious metals market involve spoofing.

Another trick? Dumping massive amounts of paper silver contracts during off hours like midnight or early morning when volume is low. That makes the price drop look real, even when it's not.

Some of the biggest names have been caught doing this. In 2020, JPMorgan paid $920 million for an eight-year pattern of metals manipulation. Deutsche Bank also settled for $130 million. But those are just the ones who got caught.

Why Would They Do This?

You might be wondering, why go through all this effort? On the surface, sure, it's for profit. Big banks and hedge funds can make fortunes by creating volatility—buy low, run the price up, dump it, rinse and repeat.

But there's something much deeper. Silver isn't just another metal. "Silver is money." It has been for thousands of years, from Roman coins to pre-1964 US currency.

When silver surges, it tends to shake confidence in fiat currencies like the US dollar. So, there’s a quiet incentive to keep it suppressed, to protect not just profits, but belief in the dollar itself.

Is National Security Also Involved?

Back in 1942, the U.S. government admitted silver was crucial to the war effort. They raided silver reserves because production couldn't keep up. Today, silver is still used in smart bombs, drones, and missile tech.

Could the government still view silver as a strategic metal? Could price suppression be about keeping defense contractors adequately supplied? We don't have a Senate hearing saying that, but history suggests when silver becomes of national interest, all bets are off.

What Happens When The Manipulation Breaks?

Look at this chart. It's well below its all-time high from 1980. Adjust for inflation, and silver would need to be over $150 an ounce to match that same peak today.

Sure, Wall Street manipulation might be part of the story. But what if there's more to it than just profit schemes? What if keeping silver cheap is actually intentional, maybe even tied to national security?

The system worked for years. Paper silver kept prices in check. Retail demand came and went. Nobody noticed. But now, the cracks are showing.

- Over a billion ounces deficit since 2019
- Huge shortfall forecast for 2025
- Industrial demand still growing
- Physical silver is getting harder to find
- Premiums on silver are rising
- Mints are struggling to keep up

You can suppress prices for a while, but eventually the suppression fails. You can't print silver. And when the physical market overpowers the paper market, we could see a violent repricing—fast, brutal, and unexpected.

Some believe we’re heading for that moment.

A Potential Short Squeeze?

Brian Kim believes silver is undervalued and could hit triple digits. Is that guaranteed? No.

But here's what you need to know: The price of silver is manipulated. It is no secret. The manipulation continues. They have their reasons to suppress the price of silver, but this manipulation involves a lot of shorting. One day this is going to unwind, and it's going to backfire on them. And when that happens, it's going to be glorious.

Markets are tricky, and manipulation can last longer than anyone expects. But when it breaks, it could be violent, kind of like holding a balloon underwater. That’s why more investors are stacking silver, not to speculate, but for insurance. And honestly, that might not be such a bad idea.

Bottom Line: How Long Can This Last?

We've walked through the facts: the shortages, the paper games, even the government's historic interest in silver. I’m not saying there’s one grand conspiracy. But when spoofing is real, when paper contracts outnumber real silver ounces by a mile, and when even the military relies on silver for critical tech, maybe keeping silver cheap is a matter of national security.

What do you think? Is silver being price suppressed, or is this just how markets work sometimes?

Go to the YouTube video and share your thoughts in the comments. See you there!