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Craig Hemke: Gold and silver shortages are exploding
By Craig Hemke
Sprott Money, Toronto
Wednesday, October 1, 2025
As September 2025 came to a close, gold closed up 11% for the month, pushing well into all-time high territory. In this month-end wrap-up, market analyst and mining executive David Jensen offered a stark and data-rich breakdown of the underlying dynamics fueling this rally.
While many market watchers cheer rising prices, Jensen's analysis paints a deeper, more structural concern.
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"We've got price backwardation where the spot price is higher than the futures price all the way out to 12 months," Jensen explained, signaling an intense demand for physical metal in the here and now -- demand that outpaces supply by a wide margin.
Beyond the headlines and price charts, Jensen emphasized that the physical precious metals markets, especially gold and silver, are in deep distress, mainly due to the fractional-reserve-style paper trading systems in places like London.
"This market is dominated with price setting in the UK and in London. ... You don't have to have the metal to sell immediate ownership of metal," he said, revealing the core of the issue: Promissory notes are outstripping physical inventory. With lease rates now exceeding 5% and backlogs building, the system is under growing pressure. ...
... For the remainder of the analysis:
https://www.sprottmoney.com/blog/gold-silver-shortage-explodes-spot-price-analysis-david-jensen
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