SILVER Must RESET To 'Multiples of Current Price' To Resolve 'Huge' Deficit: David Jensen
•February 11, 2026
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Why It Matters
A prolonged silver deficit and failing market safeguards could force prices to multiples of today’s level, reshaping safe‑haven strategies and prompting investors to reassess exposure to physical precious metals.
Key Takeaways
- •Six-year silver supply deficit drives price toward multiple-digit gains.
- •New York and Shanghai vaults down 25% and 8% respectively.
- •CME COMEX circuit breakers failed to trigger during 26% price plunge.
- •High-frequency trading can reset protective guard-rails, enabling sell-offs.
- •Chinese premium and logistics create incentive to drain Western silver stocks.
Summary
The interview with David Jensen focused on the stark silver supply deficit that has persisted for six years and its implications for price dynamics. Jensen argued that the current $80‑$85 per ounce level is unsustainable, citing a projected 300 million‑ounce shortfall in a 1.4‑billion‑ounce market and a rapid drawdown of physical inventories in New York and Shanghai vaults.
Key data points include a 25% reduction in New York’s 102 million‑ounce stock and an 8% drop in Shanghai’s 25 million‑ounce holdings within a single day. Jensen also dissected the CME COMEX circuit‑breaker mechanism, explaining how velocity‑logic triggers reset the 10% price bands, allowing high‑frequency traders to bypass the intended 2‑minute pause and exacerbate a 26% plunge on January 30.
Notable examples highlighted a $6‑per‑ounce (7%) premium in Shanghai, which swells to roughly $99 per ounce after accounting for a 13% Chinese VAT, creating a $15‑plus arbitrage incentive to move metal from Western vaults. Jensen warned that such premiums, combined with aggressive short‑selling, signal an imminent price reset to “multiples of the current price.”
The broader implication is that silver may surge into triple‑digit territory as investors seek a safe‑haven asset amid dwindling inventories and eroding trust in traditional financial institutions. Market participants should monitor vault levels, circuit‑breaker reforms, and geopolitical shifts, especially China’s role, to gauge the timing and magnitude of the next price breakout.
Original Description
David Jensen believes that the only way to resolve the massive and rapidly expanding silver supply deficit is a reset to multiples of current price levels, and the paper market stands no chance of tamping down markets while faces with an inescapable physical shortage. David breaks down all the data surrounding his thesis, explains why gold and silver are already finding use in a new sound money economy, and much more.
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00:00 Introduction
01:02 Silver's Rise and Fall
02:46 Silver Supply Deficit
05:21 Why Didn't COMEX Breakers Trigger?
10:36 Is Price Suppression Ending?
12:59 Shanghai Silver Premium
15:51 China's Role in Silver Market
19:01 How Far Can This Silver Bull Run?
21:35 Outlook For Gold
24:05 Is There a Time to Sell Metals?
26:38 Evil of Central Planners
30:21 Gold & Silver's Return as Money
34:45 Endgame of the Fiat System
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