The Paul Barron Crypto Show 🚨Silver Supply Shock & Short Squeeze Alert!🔥Ethereum & Polygon Analysis
Oct 15, 2025
A historic silver supply shock is unfolding, with a demand surge that could exhaust supplies in just a week. The discussion highlights challenges for dealers hedging physical silver, alongside price predictions that suggest much higher potential. Additionally, tokenized commodities are on the rise, though silver has yet to find its footing in digital form. Polygon's growth in the Layer 2 space and its role in tokenized bonds is explored, with intriguing implications for the future of both crypto and precious metals.
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London Borrowing Costs Signal Squeeze
- London silver borrowing costs have spiked to ~100% annualized, signaling acute physical demand stress.
- This unusual spike suggests a severe supply squeeze that could precipitate major market disruption.
Dealer Stops Orders Over Hedging Gap
- Andy Schectman described a dealer pausing orders because hedging via COMEX is now deeply uneconomic.
- He explained his normal buy-and-short hedge no longer works, leaving distributors exposed.
Delivery Failure Could Trigger Liftoff
- Andy argues physical metal can't be moved fast enough to meet London demand and that PR claims of shipments are misleading.
- He warns that failed deliveries on COMEX/LBMA could trigger a contagion and a dramatic price liftoff.