Why Is Silver Surging?

Natural Gas Market - Natural gas has been trading in a range between $2 and $5 for nearly 20 years, with a notable second consecutive colder-than-normal winter impacting demand [1] - As of Wednesday, the front contract for natural gas is trading at $3.70, with expectations for prices to reach around $5 by January of next year [2] - Hedge funds are currently positioned short on natural gas, leading to a price surge attributed to a short squeeze, particularly in the front contract with only 20,000 open interest compared to 350,000 in the next contract [3][4] Silver Market Dynamics - Silver prices are experiencing a significant rally, with the current momentum being driven by demand from China, leading to speculation [6] - The amount of silver held in ETFs is 843 million ounces, a substantial supply that did not exist in the past, and these holders have started selling into the rally, resulting in a 2% decrease in total holdings this year [7][8] - The velocity of the silver rally is unprecedented, with comparisons being made to historical peaks, and expectations of potential price corrections in the future [5][6]