Silver breaks above $58 in new record, but Clem Chambers says the “real move” hasn’t started
Silver surged above $58 an ounce on Monday, trading at historic highs as shrinking inventories, rising investor demand and renewed supply concerns drove the metal to levels not seen even during previous bull-market peaks.
The rally followed a weekend of market turbulence after a 10-hour outage at CME Group halted metals, currency and interest-rate futures on Friday. The exchange attributed the shutdown to a cooling-system failure at its Aurora, Illinois data center.
But for Clem Chambers, CEO of Online Blockchain PLC, the outage was secondary to what he believes is a deeper structural shift underway in the global silver market.
“This is noise,” Chambers told Kitco News. “This isn’t the real squeeze. Silver is going a lot higher. Ninety-five dollars is where I sell. People think this is the big move — it’s not. The real move is still coming.”
Chambers’ view is shaped in part by the strain emerging across the physical supply chain. Shanghai Futures Exchange inventories have fallen to their lowest levels in nearly a decade, according to exchange data. China also exported roughly 660 metric tons of silver to London in October, an unusually large shipment that traders say helped ease tightness after a surge in delivery requests on the LBMA.
U.S. market observers note that December silver delivery requests on COMEX have been elevated, but available data is incomplete. Analysts say the proportion of open interest seeking delivery is “significant,” though they caution that the relationship between delivery notices and registered inventory changes rapidly and does not necessarily indicate immediate stress.
Chambers, however, interprets the trend differently.
“If even a fraction of those contracts demand physical delivery, the market will struggle,” he said. “Silver doesn’t have big buffers. It tightens fast.”
While industrial demand in solar manufacturing, electronics and green-energy applications remains strong, Chambers said the most underappreciated force behind the rally is individual investors.
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“Sovereigns don’t care about silver,” he said. “Retail does. And retail demand is a juggernaut. When retail decides to own silver, it becomes unstoppable.”
Investment flows appear to support that assessment. Industry analysts say silver-backed ETFs have seen renewed inflows through the final quarter of the year, reversing the outflows that dominated much of 2024. Bloomberg tracking shows global holdings approaching high levels reported earlier in the decade, though precise, real-time totals vary among providers. Coin and small-bar sales have also risen at major mints, and several Asian bullion dealers have reported multi-week delivery delays.
At the same time, global mine supply has shown little growth, with some producers reporting year-over-year declines. Recycling volumes have also remained relatively stable despite the higher price environment. Analysts describe the overall picture as a potential supply imbalance - not something fully measurable in real time, but a scenario that, if sustained, could intensify future price shocks.
Chambers said that mix of strong investment flows and constrained supply is likely to shape the next leg of the market.
“This isn’t the blow-off,” he said. “This is the beginning.”
Even as silver captures investor attention, Chambers said his primary trades heading into 2026 are copper, platinum and oil. Copper futures for March 2026 (HGH6) traded at $5.27 per pound on Monday, holding near recent highs. The contract continues to benefit from expectations of a tightening global market as electrification accelerates and AI infrastructure drives new power-grid demand.
“AI is going to boil the oceans,” Chambers said. “Data centers need power. Power needs copper. It’s all connected.”
He also emphasized platinum’s vulnerability to supply disruptions, given the metal’s heavy dependence on output from South Africa and Russia. “Platinum is fragile,” he said. “One supply shock and it explodes.”
In cryptocurrency markets, Bitcoin traded below $86,000, extending a pullback that began in mid-November. Chambers said the decline confirms the call he made during his last Kitco News appearance, when he announced he exited Bitcoin at $100,000.
“This is the crypto winter I talked about,” he said. “Liquidity is leaving crypto, and it’s not coming back quickly.”
Shares of Strategy Inc., formerly MicroStrategy, came under pressure Monday after the company disclosed a $1.4 billion cash reserve designed to support dividends and interest payments tied to its large Bitcoin holdings. Chambers said the move reflects the strain now emerging across the crypto-corporate sector.
“They’re under pressure,” he said. “When the premium doesn’t make sense, I don’t trust it.”
With markets looking ahead to the Federal Reserve’s December decision, Chambers said the divide between assets benefiting from physical scarcity and those exposed to liquidity withdrawal is widening.
“Silver isn’t done,” he said. “This is the start of a much bigger reprice.”
