The silver vault in London is being gradually emptied. This Friday, spot silver broke through $75 per ounce, hitting a new all-time high for five consecutive trading days, with this year's increase soaring to 161%.

What's even crazier? Traders are forced to charter transoceanic cargo planes, rushing to airlift hundreds of kilograms of silver bars. This scene feels familiar—2020 dollar liquidity storm, 2023 US debt crisis... but this time, the main character is silver.

Why is this happening? Essentially, it's because "paper silver" (contracts) and "physical silver" (real gold and silver) have become completely disconnected.

Look at this data to understand: the 1-year silver swap rate minus the US benchmark interest rate has plummeted to -7.18%. In normal years, considering storage and insurance costs, forward silver should be more expensive than spot. But now, it's the other way around—spot premium is 7%, indicating the market is desperately trying to get hold of real silver.

The root cause lies in inventory. Data from the London Bullion Market Association shows that silver inventories have shrunk by 75% from their 2019 peak, with only about 200 million ounces freely available for trading. Tight supply on the one hand, and such strong demand on the other, are widening the gap between paper contracts and physical assets.