Originally published at: https://peakprosperity.com/lanci-the-silver-short-squeeze-hasnt-even-begun/
In this bonus Finance U podcast, I speak with Vince Lanci, veteran silver trader and all-around precious metals expert.
Shockingly, he claims that silver’s meteoric doubling in price during 2025 isn’t actually a short squeeze. That’s coming, and you’ll know it because of the fat green price candles you’ll see during a very short number of days or even hours.
Vice helped me understand how such a colossal short interest in silver developed over the decades (the largest by far of any commodity when compared to yearly mine output), and why that regime is ending.
He agreed with my long-running assessment that the midnight price slams were not consistent with legitimate price discovery or portfolio management, but were instead designed to create lower prices. In other words, not price discovery but price manipulation.
But those slams have been working less and less well over the past few months. Welcome to the future; it’s a new world.
And this is against a backdrop of De-Dollarization by the BRICS, who have now fielded a non-dollar payment settlement system using something called the “unit” as the currency and using the blockchain-based M-Bridge piping to move it around. Of particular note, the Unit is backed 40% with gold, marking the first official remonetization of gold for cross-border settlement since, well, August 15th 1971.
Vince doesn’t like giving price targets, but if recently reported portfolio allocation suggestions to gold come to pass (e.g., Morgan Stanley’s 20% recommendation), he could see gold reaching $6,500–$12,000. Along similar lines, silver may hit $144–$244 long-term as a critical mineral, with structural shortfalls continuing to drive prices.
Most importantly, Vince does not think that silver will be made illegal for US citizens to own. But the government may well have to try and shake some silver loose from investors’ hands.
Vince’s policy recommendation for that would be to remove capital gains taxes on silver (and gold, too, hey, why not?), which could potentially free up 600 million ounces domestically. Given that long-term cap gains taxes on silver are at about 32% all-in, that would be like an immediate 32% increase in the price of silver, from an investor’s after-tax standpoint. You know what? That could work. For a while…
But what do we do with the idea that structurally silver is what appears to be a sustained supply deficit relative even to industrial demand alone?
Tune in to hear it all.
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