Silver Market Turmoil as Prices Surge Past $50, Triggering Short Squeeze

London silver prices have breached $50 an ounce for the first time since 1980, sparking a violent short squeeze that has left traders scrambling for cover. The rally has pushed benchmark prices to multi-decade highs, with London premiums eclipsing New York's in a market where liquidity has all but evaporated.

Panicked participants are now resorting to extraordinary measures—including booking transatlantic cargo space to physically ship silver bars from New York vaults. This tactic, typically reserved for Gold markets, underscores the desperation to capitalize on record London premiums. "This is completely unprecedented," said Greenland Investment Management's Anant Jatia. "There is no liquidity available currently."

The crisis bears superficial resemblance to the Hunt brothers' 1980 cornering attempt, but analysts emphasize this surge stems from a confluence of factors: explosive investor demand, shrinking inventories, and tariff fears. The century-old London bullion market—where banks set global benchmarks and armored trucks shuttle metal between vaults—now faces its sternest test in generations.