Part 7/12:
The combination of low inventories in the registered holdings at COMEX, increased physical demand, and potential leasing activities creates an environment ripe for a possible silver squeeze. Morgan stresses that the probability of a physical shortage leading to a sharp rally is high, but the outcome hinges on how much real demand exists versus what can be delivered swiftly.
He also draws analogies to other metals that have experienced similar stress, such as palladium, nickel, and platinum, in which physical shortages have led to sudden price explosions. These examples underscore that when physical supply is tight, especially in a market driven predominantly by derivatives, real-world scarcity eventually manifests into price volatility.