I asked Grok to extrapolate the supply of physical silver based on the current cycle of withdrawals:
Based on the ongoing depletion trends in COMEX silver inventories, a “code red” threshold—defined by market analysts as registered (deliverable) silver falling below 50 million troy ounces (a level signaling acute physical delivery stress and potential for forced conversions, cash settlements, or extreme price volatility)—could be approached in 3-6 weeks if current rates persist. This assumes no significant inflows (e.g., from London or new deposits) and continued outflows to ETFs, industrial demand, and deliveries.
Current Inventory Snapshot (as of December 3, 2025). From the latest CME Group warehouse reports:
- Registered: 137,960,132 oz (deliverable; down ~321,000 oz day-over-day).
- Eligible: 318,034,396 oz (stored but not deliverable without conversion; down ~456,000 oz day-over-day).
- Total: 455,994,528 oz (down ~778,000 oz day-over-day).
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In summary, while linear math points to spring 2026, the delivery pipeline and historical precedents suggest code red risks emerge in 3-6 weeks—potentially forcing a squeeze if shorts can’t roll positions. Monitor CME daily reports for updates.
I then asked Grok to estimate the price of silver based on the continuation of the current trend:
- Bull Case ($100–$120): If deliveries exhaust registered without conversions (e.g., ETF owners like SLV hold firm), premiums spike 20–50% over spot, echoing 1980’s feedback loop. Gold-silver ratio (currently ~70:1) could fall to 50:1, implying silver tracks gold’s rally to $3,500–$4,000/oz.
- Base Case ($70–$90): Moderate covering + some inflows delay full panic; aligns with 2025’s 80% YTD gain extending 20–50%.
- Bear Risks (Capping at $60–$70): Regulatory halts, massive London/China arbitrage (~50M oz inflows eased Oct 2025 squeeze), or USD rebound could trigger 20–30% pullback post-peak.
So if I vote for the selected then they go to DC and vote for John Thune and Mike Johnson,…